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     BEIJING (MNI) - The following lists highlights from Chinese press reports
on Tuesday:
     The PBOC will make good use of existing financial support policies and
introduce new measures to offset the impact of the coronavirus epidemic, said
PBOC governor Yi Gang at an internal meeting on Monday. In comments reported on
the PBOC website, Yi said prudential monetary policy should be more flexible and
should prioritize the recovery of the real economy. As the next step, the PBOC
would support financial institutions to provide special credit lines for
industries and private and small companies which have been most affected by the
epidemic. Other policies would support an increase in loan renewals and
appropriately reduce, or exempt, loan interest for small firms, Yi said. 
     The PBOC should be cautious in lowering the benchmark for deposit interest
rates as any cuts would change prudential monetary policy, according to the
Securities Times. In a front page commentary, the newspaper said China's banks
should optimize their business models to keep themselves profitable as loan
rates have been guided down by the central bank. Banks have also cut their
short-term profit projections and stepped up supports to the real economy, with
a focus on small and medium enterprises, the newspaper added. 
     China should not relax controls over the real estate market even though the
coronavirus epidemic has delayed house construction and sales, according to the
Economic Information Daily. In a commentary published on the front page, the
Daily said aggregate demand for houses had not been impacted by the epidemic.
Experience had shown that even very small relaxations of policy in the real
estate sector could result in speculative activity, the Daily added. 
     Policy banks in China should make up for shortfalls in infrastructure
investment as the central government keeps a tight lid on the debts of local
government bodies and regulates financial institutions, according to China
Securities Journal. In a commentary, the Journal said the government should also
consider selling Special China Government Bonds, setting up a Special
Construction Fund and another fund for small and medium enterprises. 
--MNI Beijing Bureau; +86 (10) 8532-5998; email:
--MNI Sydney Bureau; +61 405322399; email:
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