MNI China Press Digest May 27: PBOC, Moody's, Consumption

Highlights from Chinese press reports on Tuesday:

• The People’s Bank of China has taken a moderating approach to the yuan’s appreciation momentum rather than actively pushing for substantial gains, Yicai.com reported, citing market insiders' analysis. The yuan could fluctuate between 7.2-7.3 against the U.S. dollar in the next six-12 months, depending on export performance and trading firms’ forex settlement, the newspaper said, citing Zhu Haibin, chief China economist at JP Morgan.
• China's Ministry of Finance said Moody's decision to maintain the country's rating and outlook unchanged reflected China's positive economic prospects, Shanghai Securities News reported. New and existing policies will combine to support the nation’s high-quality economic development, following a strong start to the year, a statement on the ministry's website noted.
• Authorities should boost consumption by prioritising resident’s capital market income given the limited potential for increasing real estate and wealth management product wealth, according to Lian Ping, chief economist at Guangkai Industry Research Institute. In the current macroeconomic environment, wage growth and business income are unlikely to provide significant short- to medium-term support for consumption, Lian said, noting improvements to pensions and social security have only a stabilising effect.