MNI China Press Digest, Feb 27: Infrastructure, Bonds, Trade

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

on Thursday:

     Infrastructure projects valued at more than CNY10 trillion have been

approved or commenced construction in the past two weeks, according to Shanghai

Securities Journal. Five provincial governments, including Beijing, recently

announced 2020 investment plans with a focus on infrastructure projects

totalling CNY11 trillion, the Journal said. Citing Su Jian, director of the

National Economy Research Institute under Peking University, the Journal's

report said infrastructure investment is an important lever for local

authorities to stabilize the economy.

     It is more feasible for China to expand the scale of local government

special bond issuance rather than issue special China Government Bonds,

according to a front page commentary in Securities Times. The procedures for

issuing special CGBs are relatively complicated, requiring review and approval

by the National People's Congress, and these bonds could further raise the

deficit-to-GDP ratio. Special bonds issued by local governments are not included

in the calculation of the deficit rate, the commentary said. 

     China's imports and exports will rebound strongly after the coronavirus

epidemic and the annual growth rate for foreign trade is expected to reach

around 5%, the China News Service reports. Citing Wei Jianguo, formerly from the

Ministry of Commerce, the report says that small and medium-sized exporters

should be encouraged to concentrate labour, raw materials, and transportation

resources to produce collaboratively, and so avoid losing orders and markets. 

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

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

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