MNI China Press Digest, Feb 26: Yuan, Monetary Policy, Tax Cut

     BEIJING (MNI) - The following lists highlights from Tuesday's China press:

     Recent adjustments in the U.S. dollar index combined with PBOC policy are

expected to see the yuan rise steadily against the greenback in the short term,

said China Securities Journal today. However, the yuan does not have the

conditions for continued appreciation over the long term, the newspaper said.

     China's monetary policy and fiscal policy require further counter-cycle

adjustment as a continued response to a slowing economy, according to former

PBOC adviser Ming Ming. In a report published today, Ming cited high debt ratios

among private SMEs' as a factor in dampening the credit appetite of banks. Ming

said that price-based monetary policy, including targeted interest rate cuts

would help support private companies with high asset-liability ratios.

     A total of 31 Chinese provinces have confirmed they will pass on a number

of key tax cuts to small and micro-sized sized enterprises, the Shanghai

Securities Journal reported today. The cuts are to taxes on resources, urban

maintenance, property, urban land use, and stamp duty, farmland occupancy, in

addition to cutting education fees by 50%. The cuts exclude cuts to stamp duty

on stock trading. The cuts take immediate effect until end-2021, according to

the Journal. In January, the Ministry of Finance and the State Administration of

Taxation gave local government the autonomy to reduce those taxes by a maximum

of 50%, the paper said.

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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

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