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EURGBP TECHS

Recovery Holds For Now

EURGBP TECHS

Recovery Holds For Now

US OUTLOOK/OPINION

SocGen Sees Big Unemp Rate Drop; JPM In Line On Job Gains

     BEIJING (MNI) - The following lists highlights from China press reports on
Tuesday:
     The PBOC is unlikely to change the loosening bias of its monetary policy
because the recovering economy still requires an abundance of liquidity,
according to Ming Ming, a former PBOC advisor in a report published today. Ming
said another factor against a change in PBOC policy was the accelerated issuance
of Chinese government and local government bonds which need a low interest rate
environment. Ming pointed to wording by the PBOC's monetary committee in the Q1
regular meeting in which they spoke of "keeping the gate of general money supply
instead of allowing a deluge of liquidity" as confirmation of the marginal
tightening of monetary policy in the first quarter. This does not indicate a
shift of the policy bias, Ming added.
     China's GDP growth may reach 6.3% this year, helped by the ease of the
Sino-U.S. trade war and positive stimulus policies, according to Shen Jianguang,
chief economist at JD Finance. Although the economy is recovering, Shen pointed
out that China requires more substantial reform to stabilize growth, given that
the economy is still facing strong pressure on exports and a possible "liquidity
trap".
     Housing regulations in China have not been relaxed and could be further
tightened if home sales in first and second tier cities become over-heated,
Shanghai Securities News reported today. Most cities are unlikely to remove
their current housing sales restrictions and some have renewed the crackdown in
response to recent media speculation of a robust market recovery, the newspaper
said citing Zhang Dawei, chief analyst at Centaline Property.
--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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