MNI China Press Digest, Aug 20: Micro-business, Local Bonds

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

Monday:

     Chinese regulators are increasing measures to enhance loan support for

micro-businesses, Securities Times reported, citing people close to authorities.

The banking regulator requires some medium- to large-sized banks to

significantly lower interest rates for micro-businesses and businesses owned by

individuals, with some decreasing the rate to around 4.77%, the newspaper said.

Regulators also encourage banks to allow micro-businesses to take out new loans

to repay old loans, according to the newspaper.

     Defaults of rental brokerage companies in the long-term property rental

market will be more dangerous than defaults of P2P lenders in China, said Hu

Jinghui, former deputy CEO of 5I5J Holdings Group Co, Ltd over the weekend,

according to WallStreetCN. In a press conference after Hu was fired due to his

public remarks warning of risks in the housing rental market, he noted that a

national guidance for housing rental prices should be established to prevent

brokerage companies from inflating prices. If the problem is not solved,

defaults of brokerage companies will certainly happen in two years, Hu said,

according to the financial news provider.

     Local governments are expected to accelerate the issuance of their special

bonds to boost infrastructure investment, China Securities Journal reported. The

special bonds would be mainly used in transportation, telecommunication,

education and healthcare. Around CNY1 trillion in special bonds need to be

issued by the end of this year, in line with the Ministry of Finance's plan to

issue CNY1.35 trillion in special bonds in 2018, the newspaper said. Risk

controls would be strictly implemented to prevent new invisible debt, the

Journal noted.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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