MNI China Press Digest, Feb 12: Raising Capital, Economy

     BEIJING (MNI) - The following lists highlights from Tuesday's China press:

     --The Chinese economy is in a period of slowing growth that may last one to

two years, as market forces, policies and uncertainties last year pushed the

real economy and capital markets to a lull, the Securities Times said in a

commentary. The slowdown should only be temporary and in the next three to five

years or even longer period, China has potential to grow further, as long as

policymakers don't make fundamental errors, the newspaper said. China's

urbanization is far from completion, market-based reform will drive reallocation

of capital, further boosting production and consumption, it said. 

     --China's State Council said it will support lending to private companies

by letting banks boost capital, according to a readout following Premier Li

Keqiang's weekly cabinet meeting on Tuesday. While mindful of "a credit

flooding," regulators will allow banks to increase the issuances of perpetual

debt, lower their barriers for selling preferred shares and convertible debt,

allow funds and annuities to participate, and encourage overseas financial

institutions to participate.

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

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