MNI China Press Digest, Feb 11: Xi, M2, CPI

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

on Tuesday: 

     China must resume construction and begin new projects as part of the effort

to minimise the impact of the coronavirus epidemic on the economy, according to

reported comments from President Xi Jinping. The official Xinhua News Agency

cited comments from Xi, who also advocated the further development of online

commerce and the consumption of health services. China should also pay close

attention to employment issues and prevent mass layoffs, while increasing

financial and labour support for companies affected by the epidemic, Xi said.

     China's M2 is expected to grow at 8.7% in January supported by liquidity

injections from the central bank, surging bond sales and increased lending and

credits, according to a report in the China Securities Journal. Citing Tang

Jianwei, the chief analyst with the Bank of Communications, the Journal's report

says that credit growth in January should be higher than in 2019 as the central

bank has lowered the required reserve ratio and conducted open market operations

to provide liquidity.

     China's CPI y/y growth is likely to fall below 5% in February as the

carryover effect diminishes and consumption declines, according to Liu Xuezhi, a

senior analyst with the Bank of Communications. Citing Liu and other experts,

the Economic Daily reports that the current coronavirus epidemic will not lead

to overall inflation.

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

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

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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