MNI China Daily Summary: Friday, November 15

     BEIJING (MNI) - POLICY: China will reduce limits on car purchases, promote

replacement of old home appliances and electronics, and advance online services

to revive growth, said Meng Wei, the spokeswoman of the National Development and

Reform Commission (NDRC) at a briefing on Friday. China will also boost rural

spending on ecommerce by improving logistical infrastructure, Meng said. 

     LIQUIDITY: The People's Bank of China (PBOC) injected CNY200 billion via

1-year medium-term lending facility (MLF) with rate unchanged at 3.25%. The

central bank skipped reverse repos today, it said on its website. The level of

liquidity in the banking system is reasonable and ample after the MLF injection,

which was to meet the demand of tax payment, PBOC said.

     PBOC also conducted the second phase of a previously announced reserve

requirement ratio (RRR) cut today. The central bank reduced the RRR by one

percentage point for city commercial banks operating in provincial

administrative areas, which will release CNY40 billion long-term funds,

according to a statement on its website.

     RATES: The seven-day weighted average interbank repo rate for depository

institutions (DR007) rose to 2.7811% from Thursday's close of 2.7091%, Wind

Information showed. The overnight repo average increased to 2.7082% from

Thursday's 2.6742%.

     YUAN: The currency strengthened to 7.0121 against the dollar from

Thursday's close of 7.0204. PBOC set the dollar-yuan central parity rate higher

for a fourth day at 7.0091, compared with Wednesday's 7.0083.

     BONDS: The yield on 10-year China Government Bonds was last at 3.2275%,

down from the close of 3.2475% on Thursday, according to Wind Information.

     STOCKS: The Shanghai Composite Index edged down 0.64% to 2,891.34. Rare

earth shares gained, with auto producers rallying following NDRC saying to relax

purchase limits. Hong Kong's Hang Seng Index increased 0.01% to 26,326.66.

     FROM THE PRESS: Pork prices in China are unlikely to increase significantly

and supplies are expected to recover through second half of 2020, the China

Securities Journal reported citing analysts. The sharp rise in prices this year

curbed demand and prices had moderated in the last two weeks, the newspaper

said.

     The National Bureau of Statistics will calculate GDP for each region

separately starting 2020 to combat fraud by local governments, The Paper

reported citing Director Ning Jizhe. The reform is necessary for understanding

China's economic conditions and formulating policies, the newspaper cited Ning

as saying.

     Chinese Premier Li Keqiang said local governments must make good use of

national policies to boost effective investment and promote industrial

upgrading, 21st Century Business Herald reported citing a meeting in Jiangxi

attended by Li on Thursday. Local officials must help stabilize growth and not

be lazy and negligent, the newspaper cited Li as saying.

     Housing prices in China's top-three-tier cities decelerated In Oct from

Sept, the China News Service reported citing official data. Prices may continue

to cool in Q4 given that authorities may keep regulations tight fearful of the

high inflation, the newspaper said citing Zhang Dawei, chief analyst at

Centaline Property. 

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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