MNI China Press Digest, Jan 18: SOEs, Liquidity, Deflation

     BEIJING (MNI) - The following lists highlights from Friday's China press:

     China's key state-owned enterprises(SOEs) saw record high total profits of

CNY1.7 trillion in 2018, an increase of 16.7% y/y. Net profits recorded CNY1.2

trillion yuan, a rise of 15.7%y/y, Securities Daily reports today, citing Peng

Huagang, spokesman of the State-owned Assets Supervision and Administration

Commission(SASAC). SASAC will accelerate to set up corporate enterprises which

are authorized to operate state-owned capitals and actively promote reform of

mixed ownership and equity diversification, the daily said citing Peng.

     The PBOC's week-long liquidity injection underlines its determination to

lead market interest rate lower, aiming to stabilize the price of funds during

the tax season, Securities Daily said today in a front-page commentary. As to

the effect of the PBOC's injection, it now depends on whether banks can help to

direct the funds towards the real economy, the Daily said.

     China's increasing deflationary pressure will curb the overall import

demand for bulk commodities and the prices of overseas iron ore (especially

high-grade ore), thermal coal, coking coal and zinc will face different degrees

of adjustment, according to a report published by China International Capital

Corporation(CICC). CICC believes that the weakening domestic demand is the

inevitable result of a sharp slowdown in credit expansion, the report said.

--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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