MNI China Press Digest, April 30: Fee Cuts, Reforms, Housing

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

on Tuesday:

     China is set to lower the rate of employers' contribution to social

insurance to 16% from Wednesday, Securities Daily reported today. The newspaper

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

Jincheng, who said the move was expected to reduce the financial burden on

enterprises by more than CNY300 billion. The reduction represents a cut of

around 63% after last year's cut of CNY184 billion, the daily said. Wang said

the government may need to transfer more public money to replenish the social

security funds as a result of the unprecedented cut.

     Policymakers should stick to promoting reforms instead of easing liquidity

to stimulate the economy or tightening the credit supply to drive de-leveraging

in the short-term, China Securities Journal said in a commentary today. The

Journal said that while the economy had stabilized it may not rebound strongly

due to domestic and external uncertainty. The commentary called for more

countercyclical macroeconomic policy to help lower the cost of business.

     The rebound in China's housing market has begun to cool after lasting just

over a month, the China News Service reported today. The turnover of established

homes in Beijing, Shanghai, Shenzhen and Guangzhou declined by between 20 to 30%

m/m in April, the newspaper said citing data by the Beike Research Institute

which is affiliated with the Homelink Real Estate Agency. The rapid recovery of

the housing market is not sustainable because financial regulations may be

tightened and mortgage support for first-time home buyers announced at the

beginning of the year may be curbed, the newspaper said citing Xu Xiaole, chief

market analyst at Beike 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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