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

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