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     BEIJING (MNI) - The following lists highlights from Chinese press reports
on Friday:
     New yuan loans in China hit a single month historic high in January of
CNY3.34 trillion, according to a report in the China Securities Journal. The
Journal report cited Ming Ming, chief fixed-income analyst at CITIC Securities,
who said the lending surge reflected strong demand for credit in the real
economy. Ming said the increase was due to lower lending interest rates, ample
liquidity and increased issuance of local government bonds. Robust credit and
CNY761.3 billion of newly added government bonds pushed aggregate financing to
an unexpected CNY5.07 trillion in January, the Journal said citing analysts.
Zhao Wei, chief macro analyst at Changjiang Securities, said the growth in
aggregate finance is expected to decline in Q1 due to the disruption of the
epidemic but is likely to rise in Q2.
     The People's Bank of China is keeping a tight grip on the real estate
sector through small cuts to interest rates and is determined not to use the
sector for short term stimulus, according to the Economic Information Daily. The
Daily's report pointed to the PBOC's cuts of only 5 bps for the 5-year Loan
Prime Rate, the new key loan basis, while the 1-year LPR was cut by 10 bps.
Citing Dong Ximiao, an analyst with the National Institute of Finance and
Development, the Daily said the lowered 1-year LPR is intended be an offset to
the short-term impact of the epidemic but not a major stimulus for the real
estate sector.
     China's Ministry of Transport will make every effort to restore transport
services and strive to complete the annual target of investing CNY1.8 trillion
in highways and waterways, according to a statement on its website. The ministry
will promote the resumption of construction projects as soon as possible, and
accelerate the launch of a second batch of investment plans this year, the
statement said.
--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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