MNI China Press Digest, Jan 15: Premier Li, Investment, LGBs

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

Tuesday:

     China must rely on reform and opening up to stimulate 'market vitality',

counting on it to withstand downward pressure on the economy and keep growth at

reasonable levels, Premier Li Keqiang told a State Council executive meeting,

according to a statement on the government website late Monday. Li also

emphasized that China will not flood the market with excessive liquidity, but

use targeted controls, the statement said.

     Withdrawal of foreign capital, suspension of investment projects, along

with new entry and reinvestment by foreign investors are all ordinary market

behaviour and are unnecessary to fuss over, the People's Daily Overseas Edition

said in a commentary piece wrote by Liu Xiangdong, the deputy director of the

Economic Research Department at the China Center for International Economic

Exchanges. Foreign investors tend to withdraw their investment mainly in China's

low-end manufacturing area, the result of industrial transfer, Liu said in the

article.

     14 provinces including Henan, Fujian and Yunnan have confirmed they will

issue more than CNY240 billion of local government bonds in January, responding

to the central government's order to accelerate and complete the issuance of

CNY1.39 trillion LGBs by end September, Securities Daily said Tuesday.

Infrastructure and public service projects will become the main driver of growth

in the future, so more LGBs are expected to be issued in these areas, the daily

said citing Tang Chuan, research director at 360 PPP Research Center.

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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