MNI China Press Digest, Jan 10: GDP, Tax Cuts, PBOC

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

Thursday:

     China's economy is likely to stabilize after the first quarter and may pick

up in the second half of the year, Securities Daily reported citing Sheng

Songcheng, a former counselor at the People's Bank of China (PBOC). Growth in

2018 is likely to slow to 6.2% in 2019 after 6.6% last year, the newspaper said

citing Zhu Baoliang, director of economic forecasting at the State Information

Center.

     China's State Council executive meeting on Wednesday introduced a series of

tax cuts for small businesses amounting to CNY200 billion each year for the next

three years, according to a statement on the government's website late

Wednesday.

     The People's Bank of China (PBOC) will establish an incentive-based

mechanism to encourage banks to actively boost lending to the real economy,

instead of using administrative measures like setting targets or assigning

orders, Xinhua News Agency said citing the central bank's Governor Yi Gang. The

PBOC will try to channel liquidity into the real economy from both supply and

demand sides, including taking measures to help banks' top up capital, Xinhua

said citing Yi.

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

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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