MNI China Press Digest, Jan 13: RMB, Liquidity, State Capital

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

on Monday:

     China's balance of payments will remain balanced and cross-border capital

inflows will increase in 2020, according to Pan Gongsheng, Administrator of the

State Administration of Foreign Exchange (SAFE). Economic Daily cited comments

from Pan, who said that risk from foreign debts is controllable. Foreign

investors bought Chinese debts as part of their medium-and-long term asset

allocations, and these were generally very stable, Pan said.

     Chinese economists estimate the liquidity gap in January will be between

CNY2.8 trillion and CNY3.2 trillion, according to a survey by Xinhua News

Agency. Over half of the surveyed economists see a small possibility that China

will cut the rates for central bank repos in January. More than half of the

surveyed economists expect China will leave the Loan Prime Rate unchanged this

month, Xinhua reports.

     China is expected to inject over CNY2 trillion state-owned capital into the

national social security fund this year, Securities Daily reports. Citing Li

Zhan, Chief Economist of Zhongshan Securities, the Daily's report says the

Chinese government has vowed to transfer 10% in state-owned capital to the

social security fund by the end of 2020. The report says the fund will be a

long-term investor in state-owned enterprises once the capital has been

transferred.

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

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

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