MNI China Daily Summary: Wednesday, May 6

     BEIJING (MNI) - EXCLUSIVE: Some Chinese local authorities are trying to

relax controls limiting property market speculation in a bid to revive their

economies and revenue flows, but the central government is resisting for now as

the decline in pandemic-hit real estate sales slows, advisors told MNI.

     Exclusive: Chinese issuance of offshore corporate dollar bonds is likely to

slow in 2020 as borrowers factor in the possibility of a recurrence of March's

worldwide dollar shortage and as raising money at home becomes cheaper, policy

advisors told MNI, noting that regulations were also limiting plans by property

developers and local government funding vehicles to raise cash.

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

for the fifth day, leaving liquidity unchanged, according to Wind Information.

Liquidity in the banking system is reasonable and ample, the PBOC said on its

website.

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

institutions (DR007) decreased to 1.2000% from last trading day's close 1.9080%,

data by Wind Information showed. The overnight repo average decreased to 1.3500%

from the previous 1.8450%.

     YUAN: The currency weakened to 7.0959 against the dollar from last trading

day's 7.0519 close. PBOC set the dollar-yuan central parity rate higher at

7.0690, compared with 7.0571 last Thursday.

     BONDS: The yield on 10-year China Government Bonds was last at 2.5550%, up

from last Thursday's close of 2.5125%, according to Wind Information.

     STOCKS: The Shanghai Composite Index gained 0.63% to 2,2878.14. Hong Kong's

Hang Seng Index gained 1.13% to 24,137.48.

     FROM THE PRESS: About 115 million Chinese took part in tourism activities

over the May public holiday period, about 60% of last year, though the number

was higher than expected, Yicai.com, owned by China Business News, reported

citing data from the Ministry of Culture and Tourism. Major tourism sites were

ordered to open only up to 30% normal maximum capacity given the coronavirus,

the newspaper said. 

     Infrastructure-backed securitisation projects can reach CNY6 trillion this

year after the government allowed real estate investment trusts (REITs) to

proceed, the Securities Times reported an analysis by Pengyuan Fund. The new

financial product can revitalize infrastructure assets and boost infrastructure

investment, the newspaper said citing Chen Xingde, the general manager of Tebon

Fund.

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

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

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