MNI China Press Digest, Dec 23: Private Firms, SOEs, Pension

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

on Monday:

     China will significantly relax private market access to infrastructure and

financial services and will introduce competition mechanisms in key areas such

as energy, telecommunications, and railways, Xinhua News Agency reports. Xinhua

cites a document from the State Council, which supports private enterprises.

Relevant departments should define a roadmap and timetable to guide private

companies to enter these new market sectors, the document says.

     China is expected to release a three-year plan for the reform of

state-owned enterprises in the first half of 2020, according to the Economic

Information Daily. Citing Li Jin, executive dean of the China Enterprise

Research Institute, the Daily's report says the plan is likely to focus on

optimizing the distribution of state-owned capital, promote mixed ownership

reform and strengthen the financial assessment of SOEs.

     China should have around 30 pension fund management institutions, according

to former central bank governor Zhou Xiaochuan. A report in Securities Journal

cites Zhou, who said that too many pension fund agencies can lead to higher

costs and lower benefits. Zhou also said that current technology allows people

to have multiple pension accounts at different jobs, and it will be possible to

receive pensions from different accounts in the future.

     China's banking regulator has approved the first issuance of perpetuity for

a rural community bank, according to China Securities Journal. Shenzhen Rural

Commercial Bank will raise a maximum of RMB 2.5 billion through the

perpetuities. 15 banks have issued perpetuities by December totalling RMB549.6

billion the Journal reported, citing Wind Information. A slew of rural

commercial banks are expected to issue perpetuities in the future, the Journal

said, citing anonymous sources.

--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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