MNI China Press Digest, April 20: Rate Cut, Infrastructure

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

on Monday:

     The use of the expression "interest rate cut" in last Friday's announcement

from the Politburo meeting of the CPC Central Committee shows there is more room

for accommodative monetary policy, according to a report in the China Securities

Journal. The Journal cited Xie Yunliang, chief analyst of Minsheng Securities,

who also said the window for lowering the benchmark interest rate for deposits

may be opened. Zhu Jianfang, chief economist at CITIC Securities, forecast two

cuts in the medium-term lending facility rate, with room for cuts of around 15

bps. 

     China will invest as much as CNY26 trillion in infrastructure projects this

year, a significant increase on CNY17 trillion in 2019, Securities Times reports

citing Zhao Yayun, a researcher with the CITIC Foundation for Reform and

Development Studies. Li Zhen, the chief economist with Zhongshan Securities,

told the newspaper that boosting infrastructure investment would drive the

urbanisation of China and restructure the economy. Li predicted this year's

investment would focus on renovating ageing residential compounds in cities, and

on infrastructure projects for environmental protection. 

--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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