MNI China Press Digest, Feb 7: PBOC, Debts, Prices, Rediscount

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

on Friday:

     The People's Bank of China plans to issue CNY30 billion of offshore bills

in Hong Kong on Feb 13 to "enrich high credit rating yuan products and improve

yuan yield curve," it said on its website today. Included are CNY20 billion

3-month tranche and CNY10 billion 1-year tranche issues, according to the

statement.

     Private companies in Hubei province, the centre of the coronavirus

epidemic, are not facing significant debt pressures as most bonds have been

issued by local government financing vehicles (LGFV), the Shanghai Securities

Journal reports. According to the Journal's report, which cites interviews with

securities firms, 11% of the total LGFV bonds valued at CNY41.32 billion mature

this year. Policy supports to add market liquidity and ease financing issues in

Hubei will help dispel investor doubts, the report said.

     China's Ministry of Commerce (MOFCOM) has called on chain stores to

guarantee the supply of food and stabilize prices of groceries. In a statement

published on the Ministry website, the MOFCOM asked stores to sustain their

operations.

     The People's Bank of China will conduct more than CNY30 billion in

rediscount operations this year, according to the China Securities Journal. This

will initially comprise CNY1 billion in Q1 and 80% of the capital will be used

to support small and medium enterprises. According to the Journal, the PBOC

requires interest rates on loans to companies participating in epidemic

prevention to be lower than 3.15%.

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

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

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