MNI China Press Digest, Feb 4: Politburo, LPR, Rate Cut

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

on Tuesday:

     Chinese local governments must help facilitate enterprises to resume

production as part of the effort to prevent and control epidemics, according to

a report by the Xinhua News Agency. Citing the meeting of the politburo's

standing committee, the Xinhua report said authorities would increase financial

support, initiate new investment projects and actively promote projects under

construction.

     Social financing and new yuan loans are expected to grow substantially year

on year in China if the Loan Prime Rate (LPR) is reduced in February, China

Securities Journal reports. Citing Wang Qing, chief macroeconomic analyst with

Golden Credit Ratings, the Journal's report says a lower LPR will reduce rates

on loans, boost corporate borrowing demand and mitigate the impact of the

coronavirus epidemic in the short term.

     Several Chinese banks say they will cut lending interest rates for small

and medium-sized enterprises (SMEs) severely affected by the coronavirus

epidemic, according to China Securities Journal. The report says the banks will

also take other credit support measures to reduce funding pressure on SMEs.

Bohan Bank will lower lending interest rates by 0.5 percentage point for SMEs in

Hubei province, while CITIC Bank's Wuhan branch will also cut 0.5 pp from the

interest rate for SME and personal business loans, the newspaper said.

     China's State Taxation Administration will implement preferential tax

policies for medical care deliverers and is actively studying other tax support

policies, according to a statement on the organisation's website.

--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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