MNI China Press Digest Sep 30: Investment, Sino-U.S., Stocks

Highlights from Chinese press reports on Tuesday:

• The CNY500 billion policy-based financial instruments announced by the National Development and Reform Commission Monday are expected to leverage about CNY6 trillion in investment, equivalent to 24% of the total infrastructure investment in 2024, Yicai.com reported citing Wang Qing, analyst with Golden Credit Rating. The new tool, aimed at replenishing project capitals, will likely drive the infrastructure investment growth by 3-4 percentage points within three years, Wang said. The figure grew by 2% y/y in the first eight months, decelerating by 1.2 pp from the Jan-Jul period.
• China has firmly opposed the U.S.’s extension of export restrictions from a single listed entity to its subsidiaries in which it holds more than 50% of the shares and urged Washington to immediately correct its wrongful practice and stop the unreasonable suppression of Chinese companies, the Ministry of Commerce said in a statement late Monday. China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises, the statement said.
• China’s capital market will continue with its stable and positive development supported by good economic momentum, coordinated policy efforts, and inflows of medium- and long-term funds, said Securities Daily in a commentary. The stock market valuation is returning to a reasonable range at an accelerated pace, which has improved the safety margin of the market and led to insurance and mutual funds increasing their allocation, which will help smooth short-term market fluctuations and guide more rational investment behaviour, the newspaper said.