MNI China Daily Summary: Tuesday, April 9

     TOP NEWS: Chinese companies with lower social credit ratings implemented by

the central government will face restrictions obtaining capital, while those

with higher standing will receive prioritized approvals, Zhou Xiaofei, deputy

secretary general of the National Development and Reform Commission, told

reporters today. Regulating the market based on social credit standing is one

measure to optimize business environment, according to the NDRC.

     LIQUIDITY: The People's Bank of China (PBOC) skipped open market operations

for the 14th straight trading day, leaving liquidity unchanged as no reverse

repos matured, according to Wind Information. Total liquidity in the banking

system is at a relatively high level, according to the PBOC.

     LIQUIDITY: The PBOC is expected to inject liquidity in the next two weeks

after 14 days of inaction, the China Securities Journal reported. The level of

liquidity in the banking system is expected to decline rapidly due to

accelerated government bond issuance, payments of reserve requirements, the

coming tax season and the maturity of the Medium-term Lending Facility (MLF)

next week, the journal said.

     RATE: The 7-day weighted average interbank repo rate for depository

institutions (DR007) increased to 2.4200% from Monday's close of 2.3305%,

according to Wind Information. The overnight repo average rose to 1.8000% from

1.4306% on Monday.

     YUAN: The yuan strengthened to 6.7125 against the U.S. dollar from Monday's

close of 6.7203. The PBOC set the dollar-yuan central parity rate at 6.7142

today, compared with 6.7201 on Monday.

     STOCKS: The benchmark Shanghai Composite Index fell 0.16% to 3,239.66. Hong

Kong's Hang Seng Index increased 0.27% to 30,157.49.

     BONDS: The yield on the 10-year China Government Bond was last at 3.295%,

up 1 bp from Monday's close, according to brokers. 

     FROM THE PRESS: The accelerated issuance of perpetual bonds will positively

impact the stock and bond markets and wont' generate a shock, the Economic Daily

said. Market sentiment is optimistic and the issuance will help diversify bond

products and optimize the structure of the market, the newspaper said. So far,

nine listed banks have announced plans to issue a total of CNY470 billion in

perpetual bonds, according to the daily's calculations.

     Beijing's housing market has begun to cool in April following robust

turnover in March, according to Economic View, an online outlet published by the

China News Service. Transaction volumes for established residential housing fell

in the first week of April for the first time in about seven weeks, Economic

View said citing data by Zhuge.com, a third-party housing price website. The

turnover of new commercial residential housing also fell by 69.43% from the

previous week, according to Zhuge.com.

--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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