MNI China Press Digest March 13: PBOC, Venture Capital, Tech

MNI (BEIJING) - Highlights from Chinese press reports on Friday:

• Monetary policy operations will place greater emphasis on discretionary decision-making in the future, with cuts to the reserve requirement ratio and interest rates adjusted flexibly and appropriately in response to economic conditions and changes in the international environment, Shanghai Securities News reported citing Liu Shangxi, vice president of the China Society of Macroeconomics. Liu said a moderately expansionary stance is needed to ensure ample liquidity and support a moderate rebound in prices, while structural tools can provide more targeted financial support for areas such as technological innovation.
• China should expand the exit channels for venture capital to allow venture-capital firms to realise profits smoothly and reinvest funds in other early-stage projects to form a virtuous cycle, 21st Century Business Herald reported citing Tian Xuan, delegate of National People's Congress. The main exit channel remains IPOs, which is extremely competitive and not completely market-driven, said Tian. The National Development and Reform Commission’s recent establishment of a trillion-yuan-level M&A fund can help with exits in the next stage. Meanwhile, secondary market funds (S funds), currently being piloted in Beijing, Shanghai and Shenzhen, can serve as another important exit channel in the future, though they still face difficulties such as the valuation of underlying assets and a shortage of professional talent, said Tian.
• The January-February invoice data released by the State Taxation Administration showed a rapid development of innovative industries, Securities Daily reported. The sales revenue of high-tech industry increased by 16.1% y/y, among which high-tech services rose by 17.2%, particularly with technology intermediary services and natural science research and experimental development growing by 25.6% and 17.4%. As for high-tech manufacturing, aerospace equipment as well as electronics and communication equipment grew by 28.5% and 18.4% y/y.