MNI China Press Digest, April 11: RRR Cut, Real Estate, NPLs

     BEIJING (MNI) - The following lists highlights from China press reports on

Thursday:

     The PBOC is likely to delay the cut in the reserve requirement ratio beyond

this month and until Q2, according to a report in the Securities Daily. The

newspaper cited Wang Qing, chief macroeconomic analyst at credit rating agency

Dongfang Jincheng, who said the main driver for the PBOC decision would be March

money supply and credit growth data. If this was seen as too weak for a rebound,

the PBOC may instead consider cutting the RRR this month to offset the maturity

of medium-term lending facilities in mid-April. March money supply and credit

growth data is set for release between April 10 and 15, with the precise date

remaining uncertain.

     A number of banks which have not previously lent to property developers are

now actively seeking to help them with financing, 21st Century Business Herald

reported today. The newspaper said the new lending appetite was another sign of

recovery in the real estate market, along with rebounding home sales data.

Developers have issued a total of CNY202.9 billion in bonds so far this year, up

by 33% from the same period last year, according to the newspaper. Since April,

developers have actively released financing plans valued close to CNY100

billion, the report said citing data by Centaline Property.

     Regulatory requirements to tighten the recognition of non-performing loans

are unlikely to be fully implemented in the short term, particularly to small

and medium sized banks, according to a commentary in the Securities Times. The

newspaper says the measure to tighten the recognition period from the current 90

days to just 60 days would inevitably increase operational pressure on the

banks. Including loans overdue by more than 60 days as NPLs is not an

internationally accepted regulatory requirement, but this indicates an intention

by local regulators to strictly control asset quality and deal with

non-performing assets, the newspaper said.

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

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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