MNI China Press Digest Nov 12: Yuan, Growth, New Energy Cars

Highlights from Chinese press reports on Wednesday:

• The yuan will remain stable with limited inverse fluctuations against the U.S. dollar, supported by economic fundamentals as timely strengthening of counter-cyclical adjustments will likely offset potential export weaknesses, Securities Daily reported citing Wang Qing, analyst with Golden Credit Rating. The dollar may show strong resilience against further declines given its significant fall earlier this year and the partly factored-in additional U.S. Federal Reserve rate cuts, said Wang. The yuan is expected to appreciate moderately overall next year assuming no unexpected changes in exports, the Daily said citing Ming Ming, chief economist at CITIC Securities.
• The Chinese economy is expected to continue its steady growth trend in 2026, potentially setting an “around 5%” annual growth target, Securities Daily reported citing economists. Fiscal policy will maintain a “more proactive” tone, and the issuance of new ultra-long-term special treasury may be increased to CNY1.6-1.8 trillion and the new quota for local government special bonds may be raised to CNY4.8 trillion, the newspaper said citing Zhang Ning, senior China economist at UBS. There could be about two reserve requirement ratio cuts in 2026, with a total reduction of about 100 basis points, as well as 1-2 interest rate cuts, with each cut being 10 basis points, the newspaper said citing analysts from Everbright Securities.
• The production and sales of new energy vehicles in October reached 1.77 million and 1.72 million units, representing year-on-year increases of 21.1% and 20.0%, China Securities Journal reported citing data by China Association of Automobile Manufacturers. New energy vehicles accounted for 51.6% of total new car sales, marking the first time their market share has exceeded 50%, the newspaper said. Automobile production and sales are both expected to hit a record high of exceeding 34 million units this year, largely stimulated by the trade-in policy, the Journal said citing Chen Shihua, deputy secretary-general of CAAM.