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     BEIJING (MNI) - The following lists highlights from China press reports on
Friday:
     The PBOC may consider lowering the reserve requirement ratio to fill the
liquidity gap, according to a report in the Securities Daily. The newspaper
cited Xu Hongcai, the deputy chief economist at government backed think tank the
China Center for International Economic Exchanges, who said the growth of M2 is
still lower than that of nominal GDP, while M1 growth has been lingering at a
low level of close to 1%. This indicates a liquidity gap and requires a RRR cut,
Xu said.
     The Chinese economy is expected to stabilize in Q2 as stimulus policies
start to take effect, the Economic Information Daily has reported. The newspaper
cited Sheng Songcheng, a former director of the Survey and Statistics Department
of the PBOC, who said he did not see a dramatic deceleration in levels of
investment, retail sales and exports this year. Sheng said trade tensions and
financial risks were expected to ease, and private enterprises would continue to
gain from policy support and structural economic reform.
     Local governments should make efforts to prevent the fluctuation of home
prices and crack down on housing speculators, while relaxing the "hukou"
household registration system, according to a commentary in the People's Daily
today. China aims to move rural residents to cities by offering them urban
"hukous", measures which are designed to boost the economy although some were
concerned this would concentrate the population and push up housing prices, 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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