MNI China Press Digest, Jan 2: RRR Cut, Special Bonds, Growth

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

on Thursday:

     The PBOC is expected to follow up next Monday's scheduled 0.5 pp cut in the

reserve requirement ratio with further cuts later this year, according to a

report in the China Securities Journal. The forecast of more cuts was made by

Wang Qing, the chief macroeconomic analyst at credit rating agency Dongfang

Jincheng. Citing Liao Zhiming, chief banking analyst at Tianfeng Securities, the

Journal's report also says the central bank may conduct medium-term lending

facilities (MLFs) to add liquidity during the Chinese New Year at the end of

January.

     Ten provinces in China, including Sichuan and Henan, are planning to issue

CNY229.3 billion of infrastructure-back local government special bonds in

January, the China Securities Journal reports. The bond issuance may reach

CNY410 billion in January and total CNY3.35 trillion in 2020, according to Ming

Ming, chief fixed-income analyst at CITIC Securities. Funds raised are largely

used to support urban and rural infrastructure construction, ecological

environmental protection, water conservation and social welfare projects, Ming

said.

     China must do more to ensure that economic growth is stable and within a

range of around 6%, according to a report in the Economic Daily. Citing Feng

Qiaobin, the deputy director of the macroeconomic research department at the

Development Research Center of the State Council, the Daily's report says that a

balanced economy is the key task for 2020. China will also issue CNY3.15

trillion of new local government special-purpose bonds to support a number of

infrastructure projects, including the Sichuan-Tibet railway, Feng said.

--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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