MNI China Press Digest, Jan 20: Fiscal pol, TMLF, Steel

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

on Monday:

     China will maintain the current policy of 'cutting fees and lowering taxes'

in 2020, according to a commentary published by Economic Daily. China

implemented the biggest national tax cut campaign in 2019, according to the

Daily, with the result that tax revenue only increased by 0.5% y/y in 2019 to

CNY14.97 billion.

     The PBOC may roll over the Targeted Medium-Term Lending Facility (TMLF) set

to mature this Thursday with extra funds, the Securities Times reports. Citing

Ming Ming, the chief analyst at CITIC Securities, the report says the central

bank will continue to conduct reverse repos before the Chinese New Year,

although on a smaller scale. Ming said there was still a liquidity gap of CNY1.3

trillion in January after the PBOC injected CNY1.9 liquidity on Sunday.

     China's 2020 goal of building a well-off all-round society as outlined in

the Thirteenth Five-Year plan would be best served through stabilizing areas

such as employment, investment and trade, Economic Information Daily said in a

commentary. Macro policies should maintain continuity and counter-cyclical

adjustment should be reinforced in the face of economic downward pressure, the

commentary said.

     The economic recovery and the faster contracting of supplies could see the

steel price rise in 2020, according to a report in the Economic Information

Daily. The Daily quoted a forecast from the China Iron and Steel Association

(CISA), which said domestic demand would increase by around 2.0% y/y.

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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