Free Trial

MNI China Press Digest, Jan 16:Liquidity,Infrastructure, Bonds

     BEIJING (MNI) - The following lists highlights from Chinese press reports
on Thursday:
     The PBOC is expected to inject around CNY400 billion in additional
liquidity to meet demand during the Chinese New Year period, according to a
report in the Shanghai Securities News. The newspaper cited Yang Weixiao, chief
fixed income analyst at BOC International, who said many market participants
believe that the release of CNY300 billion liquidity via medium-term lending
facility (MLF) yesterday partially meets this need, but keeping the MLF interest
rate unchanged failed market expectations. 
     China's infrastructure investment should increase by at least 11% y/y to
drive short term economic growth, and increase by 7.7% in the medium to
long-term to match GDP growth, the Securities Times reported. The Times cited
Yan Kun, Secretary of the Party Committee and a Researcher at the National
Academy of Economic Strategy who said he was concerned that fund raising for
infrastructure projects would be constrained by the debt risk faced by local
government financing vehicles and declining revenues from land purchases. 
     China's issuance of local government bonds in 2020 will exceed CNY5
trillion and may even hit a record CNY6 trillion, the China Business News
reports. Citing Ma Liya, senior analyst at the credit-rating agency Dongfang
Jingcheng the News report said new bonds will reach CNY4.35 trillion, with
refinancing accounting for close to CNY2 trillion. The report said the issuance
was driven by the need to stabilise economic growth. 
--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com
--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com
[TOPICS: M$A$$$,M$Q$$$,MI$$$$]

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.