“The Chinese economy may grow around 4.8% in 2022, and could reach 5%-5.5% if supported by strong policies such as the issuance of special treasury bonds in H2,” Yicai.com reported, citing a report by Zhixin Investment Research Institute.

Additional takeaways

“If issuing CNY1.5 trillion special treasury bonds, the infrastructure investment growth in 2022 could increase by 24.8%, otherwise the figure may rise by 13.7%.”

“The central bank is expected to cut the reserve requirement ratio in H2 to ease banks' pressure on capital costs.”

Market reaction

USD/CNY was last seen trading at 6.7019, down 0.08% on the day.