Top China Economist Sees Possible Interest Rate Cut Next Quarter
- Ping An’s Zhong says PBOC to face less constraints in 2Q.
- Core inflation ikely to be under control in 2023, Zhong says.
- China $ central bank may have more room to cut interest rates in the second quarter as the risk of another Covid wave lboms in coming months and the US Federal Reserve ends its interest rate hikes, according to a prominent Chinese economist.
- The Peoples Bank of China could face less constraints on easing policy in the next quarter, said Zhong Zhengsheng, chief economist at Ping An Secunities Co, adding that domestic infaton wil likely stay weak. Zhong has previousły consulted with Premier Li Keqiang on government policy.
China Provinces See Fiscal Income Growth Rebounding in 2023
- At least 26 juris dictions expect budget revenue up 5%% or more.
- Governments still see nisks induding pressure on tax revenue.
- Most Chinese provinces expect income growth to pick up as the economy recovers, though the need for more economic support poses a nsk to their balance sheets, according to the state-run Secuntes Times newspaper.
- At least 26 of China ‘s 31 provindial-evel junisdictions expect their general public budget revenue, which indudes taxes, to grow 5% or more in 2023, the publication wrote in a front -page artide Thursday.
China’s Coal Squeeze Puts $2 Billion Chemicals Project on Ice
- yītai’s facility didn t benefit from measures to cool prices.
- Coal that isn t used for power sells at a significant premium.
- China’s great coal squeeze has notched up another victim, even as prices of the mineral show signs of moderating. Inner Mongolia Yitai Coal Co. said on Wednesday it will suspend construction of a 16 billion yuan ($2.4 billion) coal-to-chemicals plant in northern Xinjiang near the border with Kazakhstan, writing down 2.8 billion yuan in the process. Higher coal prices had increased operating costs while volatile oil markets and uncertain taxation issues also raised questions about the venture’s profitability, the company said in a Hong Kong stock exchange filing.