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MNI (Beijing)
     BEIJING (MNI) - The following are highlights from the Chinese press for
     China's new loans issued so far in February are also sizeable following
January's record lending, Caixin reported citing banking sources. PBOC began to
give orders to banks to contain the size of new lending. Banks lent $460.7
billion new loans in Jan, up 396.24% from Dec; Banks usually lend more at the
start of the year to maximize interests and tap a strong demand, Caixin said.
Comment: PBOC wants to keep a strong rein on credit so as not to derail the
deleveraging campaign. The surge of new loans in January partly resulted from a
shortage of credit in the fourth quarter last year.
     China should monitor instances of liquidity shortage as it pushes forward
the financial deleveraging campaign, Securities Daily commented on its front
page. Recent capital market indicates liquidity issues. From Jan 25 to Feb 9,
the Shanghai Composite plunged about 12%, which can be attributed to the
monetary policy curbs, Daily said. Comment: It's expected that some within the
public opinion sphere will oppose the singular push by regulators. But since
President Xi Jinping has made it the top priority, it's unlikely that PBOC will
loosen the noose.
     China's asset-backed securitization (ABS) will expand at a rapid pace
benefitting from the new rules on assets management, the China Securities
Journal reported. More than CNY1 trillion ABS products were sold in 2017, the
first time ever, Journal cited China Central Depository & Clearing Ltd. As the
new rule will enhance restriction on non-standard products, the high-yield
standard products including ABS will be more attractive. Comment: As regulators
crack down on illicit off-balance-sheet transactions, ABS will be an effective
channel for financial institutions to move assets out of the balance sheet.
--MNI Beijing Bureau; +86 (10) 8532 5998; email:
--MNI Beijing Bureau; +86 10 8532 5998; email:
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