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MNI China Press Digest, Dec 26: GDP, RRR Cuts, Perpetual Bond

     BEIJING (MNI) - The following lists highlights from the Chinese press for
Wednesday:
     China's GDP is forecast to grow 6.3% in 2019, down 0.3 percentage point
from this year, Financial News, a newspaper run by the People's Bank of China,
said today citing a report by the Chinese Academy of Social Sciences. The
slowdown is due to the declining labor supply and slowing productivity, as well
as slower growth of capital, the newspaper said citing the report.
     China's monetary policy may be characterized by mainly targeted controls
next year as ways to direct liquidity into the real economy, said Economic
Information Daily today citing economists. China is expected to have two or
three cuts to reserve requirement ratios next year, which will again be mainly
targeted cuts. China is unlikely to cut broad interest rates given that the
current deposit and lending benchmark rates are already at historical lows, the
Daily said citing a report by the Bank of Communications Financial Research
Center.
     China's Financial Stability and Development Committee is looking for ways
to promote the launch of perpetual bond issuances as a way to help commercial
banks replenish capital, the 21st Century Business Herald reported today. There
are presently no precedents or regulatory rules on this instrument, the
newspaper said. The bearish stock market has limited banks' ability to raise
capital this year, as they can only issue more shares to original shareholders,
the report said.
--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$$$]

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