MNI China Press Digest, Feb 19: State Council, PSL, Growth

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

on Wednesday:

     China will exempt SMEs across the nation and all companies in Hubei

province, the epicentre of the coronavirus epidemic, from mandatory

contributions to pension funds, unemployment insurance and work injury insurance

from February to June, according to a statement on the government website. The

statement came after an executive meeting of the State Council. For large

companies outside Hubei, these contributions will be halved from February to

April, the statement said. 

     The PBOC is expected to provide an increased CNY600 billion in Pledged

Supplement Loans (PSL) to commercial banks this year to support the economy as

it deals with the impact of the epidemic, according to the China Securities

Journal. Citing Bian Quanshui, the chief analyst of macroeconomy with Sinolink

Securities, the Journal reported that the government will adopt PSL and other

quasi-fiscal tools this year to support the economy. 

     China is confident in its capability to achieve its economic growth target

this year despite the short-term impact of the epidemic, according to the

People's Daily. In a commentary, the Daily said the counter-cyclical policies

adopted by the government will alleviate pressure on companies, strengthen

confidence and stabilize investment expectations. 

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

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

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