MNI China Press Digest, Dec 25: Loosening Policy, Aiding SMEs

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

Tuesday:

     China's monetary policy next year should not be loosened to the extent that

it encourages speculation in real estate again, nor should it result in

excessive liquidity in the banking system while failing to support the economy,

the 21st Century Business Herald reported today citing Sheng Songcheng, a former

official at the People's Bank of China. Regulators may consider lowering the

reserve requirement ratio (RRR) rather than cutting broad interest rates if

necessary, the newspaper said citing Sheng.

     China's fiscal policy next year will aim to be more proactive efficient

according to the tone set by the Central Economic Work Conference last week,

Xinhua News Agency reported today citing interviews with economists. The

government will keep a certain size of deficit scale, put forward larger tax and

fee cuts, increase the issuance of special bonds, and expand expenditures at

targeted areas such as improving people's livelihood, Xinhua said.

     China's State Council pledged to further support the development of private

companies and SMEs, treat them equally with SOEs in terms of bidding for land

use, remove investment barriers in resources and transportation, further cut

taxes and fees and improve financing services including targeted RRR cuts for

them, Xinhua News Agency reported on Monday night following a cabinet meeting

chaired by Premier Li Keqiang.

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

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

[TOPICS: M$A$$$,M$Q$$$,MBQ$$$]