MNI China Press Digest, Aug 21: Special Bond, China-U.S., Bank

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

on Wednesday:

     China may consider expanding the issuance of local government special bonds

in Q4 from the current annual quota of CNY2.15 trillion, according to a front

page report in the Securities Times. The newspaper said the issuance could be

expanded due to an increased risk of weaker domestic and foreign demand. Fiscal

policies were also required, although they may be constrained by a decline in

revenue growth, the Times said.

     U.S. policies to escalate the trade war with China were causing more

American companies to lay off staff, the People's Daily said in a commentary.

The Daily said the U.S. should not blame China for the problems of U.S.

industry, and even the closure of American firms. Competitive and high quality

Chinese products were legally traded, despite punitive measures by the U.S.

against Chinese companies accused of dumping goods.

     Chinese banks have significantly increased the use of capital replenishment

tools to break credit supply constraints, China Securities Journal reported.

Citing analysts, the Journal said that so far this year the value of capital

supplementary bonds issued by commercial banks totalled a record CNY705.1

billion. This comprised both perpetual and secondary capital bonds.

--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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