MNI China Press Digest, Feb 27: GDP, Yuan, NPLs

     BEIJING (MNI) - The following lists highlights from Wednesday's China

press:

     China's economy is expected to grow 6.4% in 2019 and 6.2%-6.5% in 2020, the

Economic Information Daily said citing a forecast by economists at Xiamen

University. A sharp decline is unlikely as tax and fee cuts underpin investment

and overall growth, the daily said. Fixed-asset investment growth may be 1.23 pp

higher in 2019 at 7.25%, before slowing to 6.58% by 2020, while retail sales

this year may slow to 8.92% from 9.05%, the newspaper said citing the

economists.

     The depreciation pressure on the Chinese yuan has eased due to the

weakening dollar index and China's strong balance of payments, Guan Tao, a

senior fellow at the China Finance 40 Forum, wrote in a report. A positive

development in Sino-U.S. trade negotiations and lower expectations for further

rate hikes by the Federal Reserve helped boost investors' optimism for the yuan,

Guan said.

     Over 70% Chinese bankers contacted in a survey by the China Banking

Association expected non-performing loans ratio (NPLs) to stay below 2.0% in the

coming three years, the China Securities Journal reported today. About 70%

respondents are concerned about growths in the coming years, expecting revenue

and profit growth rates to be less than 10%, the newspaper said. The banks are

more cautious about real estate lending given many cities implemented curbs on

property purchases and lending, the journal 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

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