MNI China Press Digest, April 8: TMLF, State Council

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

on Wednesday:

     The People's Bank of China (PBOC) is expected to conduct Targeted

Medium-term Lending Facility(TMLF) next Friday when the previous CNY267.4

billion matures, the China Securities Journal reported by citing an unnamed

analyst. Wen Bin, Chief Economist with Minsheng Bank, told the Journal that

falls in the CPI from high levels have provided more room for expansionary

monetary policy. The PBOC should trim the benchmark deposit rate to guide the

Loan Prime Rate (LPR) lower and reduce financing costs for companies in the real

economy, Wen said.

     China should implement increasingly proactive fiscal policies and

accelerate the issuance of infrastructure-backed local government special bonds,

according to a statement on the government website. The statement, which

followed a meeting of the State Council executive meeting late Tuesday, said

that policymakers would strengthen fiscal support for private and small

companies, deploy measures to promote the employment of college graduates, and

increase the renewal of older residential areas in cities and towns. 

--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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