MNI China Press Digest June 12: Stocks, SMEs, U.S.

Highlights from Chinese press reports on Thursday:

• Shenzhen authorities will allow Hong Kong-listed enterprises operating in the Guangdong-Hong Kong-Macao Greater Bay Area, to list on the city's stock exchange, encouraging the return of large red-chip companies and attracting overseas investment in mainland tech companies, said Liu Jianing, a researcher at the Guangdong Academy of Social Sciences. However, dual listed companies face challenges such as double compliance costs and foreign debt and exchange quotas. Long-term funds in the A-share market need increasing to match large tech firms’ return, said Liu. (Source: 21st Century Business Herald)
• China’s Small and Medium Enterprises Development Index (SMEDI) reached 89.5 in May, up 0.3 points from April, marking the first increase in three months, data from the China Association of Small and Medium Enterprises showed. Ma Bin, executive vice president at the association, said business expectations among SMEs are clearly improving but domestic demand and consumption need further stimulation. Officials should accelerate domestic and foreign trade integration and create broader market opportunities for SMEs to sustain the positive economic recovery.
• China and the U.S. will take practical actions using the existing negotiation mechanism to jointly safeguard the hard-earned results of the recent dialogue, said the party-run People’s Daily in a commentary. China approaches trade negotiations sincerely and with principles, the newspaper said, urging the U.S. to honour its commitments, work hard to implement the consensus and resolve trade issues through communication.