MNI China Press Digest, Feb 24: Xi, PBOC, Housing, Futures

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

on Monday:

     The Chinese economy and society are a dynamic circulatory system which

cannot be stopped for a long time, according to President Xi Jinping. Speaking

at a conference on the prevention of the coronavirus on Sunday, Xi said

resumption of production in non-epidemic areas would provide strong material

support for epidemic control. In comments reported by the Xinhua News Agency, Xi

said resuming production would ensure people's livelihood, stabilize society and

also help China achieve its annual growth and development targets.

     The People's Bank of China will continue to guide interest rates downwards

and lower the cost of capital, according to Liu Guoqiang, a deputy governor of

the central bank. In an interview in the PBOC-controlled Financial News, Liu

said the central bank will lower the required reserve-deposit ratio for more

targeted commercial banks this year, further releasing liquidity from the

banking system. Liu also said policy banks will step up support for

manufacturers, import and export businesses and pork producers.

     Zhumadian city has lowered the minimum down payment ratio for first home

purchases to 20% from 30% under the housing provident fund policy, the Beijing

News reports. The municipal government of the city in Henan Province will also

subsidize certain buyers, including key talents and migrant workers, from CNY100

up to CNY200 per square metre for their first home. The move signals the start

of the second phase of the bailout policy to stimulate home purchase demand,

according to Zhang Dawei, chief analyst at Centaline Property. Previous measures

have targeted real estate developers and sought to ease their funding pressures

amid the coronavirus outbreak.

     The relaxation of regulations to allow some Chinese commercial banks and

insurers to trade Government Bond futures on the China Financial Futures

Exchange will help to promote interest rate reform, Securities Times said in a

front page commentary. The move would also help open up China's financial

markets. New players are required to develop comprehensive risk management,

internal control and business processing systems which would prevent transaction

risks, the newspaper said.

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

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

[TOPICS: M$A$$$,M$Q$$$,MI$$$$]