MNI China Press Digest April 3: FDI, U.S., A-Shares

Highlights from Chinese press reports on Thursday:

• China's foreign investment could improve faster than expected amid a better growth outlook and capital-market recovery, said Pan Yuanyuan, a researcher from the Chinese Academy of Social Sciences, noting outward investment and attracting FDI were closely related. China's non-financial direct investment in RCEP members grew 26% y/y, significantly higher than the average due to a lower risk profile. Singapore ranks first as China’s outstanding ODI destination, followed by the U.S. and Australia. (Source: 21st Century Business Herald)
• Countries making concessions to Washington will only embolden the U.S. administration’s appetite for bullying, state media outlet Xinhua said in a commentary, published several hours before President Donald Trump’s announcement on reciprocal tariffs. The news outlet highlighted Mexico’s efforts to reach an agreement on troop reinforcement at the border failed to prevent punitive duties and Japan’s bowing to the Plaza Accord during the 1980’s contributed to the nation’s lost decade. Countries should not pray for a change in Washington’s mindset, but stand together for a collective response, the outlet added.
• China’s three major stock markets’ transaction volume totalled CNY993 billion on April 2, falling below CNY1 trillion for the first time since Jan 13, as investors adopted a wait-and-see approach, Yicai.com reported. Continued company performance disclosures and tariff uncertainty increased investor caution, and synergy between funds decreased, the newspaper said, citing analysts. However, the bull market would be difficult to stop despite trading volume shrinking to one-third of its peak, said Fan Jituo, analyst at Cinda Securities, noting any unexpected tariff effect may cause a short-term impact only.