MNI China Press Digest Feb 12: SOE Banks, AI, CPI

Highlights from Chinese press reports on Thursday: 

• China's State-owned banks are focusing on aligning with national strategies in 2026, while joint-stock banks are placing greater emphasis on structural adjustments and enhancing quality and efficiency, according to Xinhua News Agency reported after reviewing the readouts from banks' recent annual work meetings. Following a period of stabilisation in the banking industry’s net interest margin since 2025, several institutions have seen positive revenue growth. Looking ahead to 2026, banks are prioritising risk control, an improvement in management efficiency and advancing digital and intelligent transformation. Many banking firms are shifting their focus away from scale targets, opting instead to deepen their operations in specialised sectors, Xinhua said.
• Premier Li Qiang said China needs to accelerate efforts in advancing AI technology innovation, industrial development and applications, to cultivate new forms of productive forces and high-quality development, the Xinhua news agency reported. During an AI-focused study session at the State Council, Li called for an expedited approach in developing the AI industrial ecosystem, optimising the allocation of computing resources and enhancing coordination among data, computation, electricity, and networks.
• China's Consumer Price Index (CPI) slowed in January to 0.2% y/y, down from 0.8% in December, largely due to the timing of the Spring Festival in the first month last year, which led to base effects from faster price increases in food and services, according to Yang Delong, chief economist at Qianhai Open Source Fund. Looking ahead, Ming Ming, chief economist at CITIC Securities, told 21st Century Business Herald that while a rebound was expected in February, CPI growth is likely to fluctuate at a low level in the near term.