MNI China Press Digest Sept 19: PBOC, New Energy, Logistics

Highlights from Chinese press reports on Friday:

• The Federal Reserve’s September rate cut could lead to reserve requirement ratio (RRR) and interest rate reductions in China, according to Liu Tao, senior researcher at Guangkai Chief Industry Research Institute. At the same time, the central bank may increase targeted liquidity support for specific sectors such as technological innovation and incremental use of structural monetary policy tools, according to Ming Ming, chief economist at CITIC Securities. However, Zhao Qingming, deputy dean at the Huiguan Information Technology Research Institute, said policymakers were unlikely to cut interest rates in the short term given the strong stock market. (Source: Securities Daily)
• China’s first new energy electricity price bidding mechanism, launched in Shandong Province, resulted in a photovoltaic clearing price of CNY0.225 per kWh, below the expected CNY0.26 per kWh, according to Zhang Xiaobin, secretary-general at the Shandong Solar Energy Association. “To secure selection, many firms submitted ultra-low bids, even at the risk of losses,” Zhang noted. A new energy power station investor added that companies will need to adjust generation capacity or expand self-consumption if the market remains oversupplied. (Source: Yicai)
• Trains on China’s western land–sea new corridor, a key logistics channel connecting western China with Southeast Asia and global markets, have transported more than 1 million twenty-foot equivalent unit (TEU) of container cargo this year, up 72.5% y/y and marks the first time above one-million-TEU, according to data from the National Railway Administration. Hao Panfeng, deputy secretary-general at the China Container Industry Association, said strengthened industrial chain cooperation between China and ASEAN, expanded transport capacity and the continuous diversification of train services had contributed to the growth. (Source: Yicai)