MNI China Press Digest, April 9: Liquidity, Bond, Housing

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

Tuesday:

     Total liquidity in the banking system is expected to decline rapidly due to

a combination of factors such as accelerated government bond issuance, the China

Securities Journal reported today. The newspaper also cited routine payments of

reserve requirements, the coming tax season and the maturity of the Medium-term

Lending Facility (MLF) next week as factors which will put more pressure on

liquidity. The PBOC, which has skipped liquidity injections for 14 straight

days, is expected to take action to boost liquidity in the next two weeks, the

Securities Journal said.

     The accelerated issuance of perpetual bonds will not cause a shock for the

stock and bond markets and will have a positive impact, the Economic Daily said

today. The Daily said market sentiment was optimistic and the issuance would

help to diversify bond products and optimize the structure of the market. So

far, nine listed banks have announced plans to issue a total of CNY470 billion

in perpetual bonds, according to the Daily's calculations.

     Beijing's housing market has begun to cool in April following robust

turnover in March, according to Economic View, an online outlet published by the

China News Service. Transaction volumes for established residential housing fell

in the first week of April for the first time in about seven weeks, Economic

View said citing data by http://Zhuge.com, a third-party housing price

comparison website. The turnover of new commercial residential housing also fell

by 69.43% from the previous week, according to the same data source.

--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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