MNI China Press Digest, April 21: LPR, Consumption

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

on Tuesday:

     The market expects the central bank to further trim the new market oriented

Loan Prime Rate (LPR) by at least 50 bps in 2020, according to a commentary

published by China Securities Journal. The People's Bank of China (PBOC) has cut

the 5-year LPR by 10 bps, half the cut to the 1-year term LPR, indicating that

the central government has stuck to the view that "houses are for living and not

for speculation". The Journal characterised this as a hawkish attitude toward

the real estate market. 

     Wuhan city in China, the epicentre of the coronavirus epidemic, will issue

CNY500 million in coupons to boost spending in restaurants, shopping malls and

supermarkets and also in areas of culture, sports and tourism, the Securities

Times reported. Meanwhile, merchants will also distribute vouchers with a total

value of CNY1.8 billion to Wuhan citizens, the newspaper said. These coupons

will be more effective in driving consumption than issuing cash as Chinese

people tend to save money, the newspaper said citing Tao Jin, senior researcher

at the Suning Financial Research Institute. 

--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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