MNI China Press Digest May 16: Premier, Swap Connect, CSRC

Highlights from Chinese press reports on Friday:

• China will enhance domestic circulation by coordinating measures to expand domestic demand and supply-side structural reforms, said Premier Li Qiang, at a meeting Thursday. Authorities should eliminate local protectionism and accelerate the construction of a unified national market, as well as strengthen core technologies and supply chain completeness, said Li. Economic policies should focus more on increasing social welfare and promoting consumption, Li added. (Source: Xinhua News Agency)
• Mainland and Hong Kong authorities will further enrich Swap Connect products by extending the interest-rate swap contract period to 30 years, to meet the diversified risk management needs of market institutions, the People’s Bank of China has announced. Additionally, officials will launch a swap contract using the onshore loan market benchmark rate (LPR) as the reference rate. The measures will promote high-level financial opening in China, the PBOC added.
• The China Securities Regulatory Commission will increase supervision to ensure raised funds are allocated to core business activities, aiming to enhance the quality of listed companies, according to a revised regulation released by the CSRC, the Securities Times has reported. Funds should be used for new or existing projects and stock repurchases, and must not go towards replenishing working capital and the repayment of bank loans, the announcement said.