MNI China Press Digest, Jan 30: Perpetual Bond, Invest, Huawei

     BEIJING (MNI) - The following lists highlights from Wednesday's China

press:

     Success of the new perpetual bonds for banks will depend largely on whether

the pricing mechanism remains market based, as different institutional investors

have different capital costs and return requirements, China Securities Journal

said today, citing analysts. Insurance firms, pension funds and other long-term

funds may become the main investors in these newly issued perpetual bonds, the

newspaper said.

     Local governments are likely to be given greater freedom in formulating

policies to promote foreign investment, albeit within statutory limits,

according to the latest draft foreign investment law which is currently under

review by the Standing Committee of the National People's Congress(NPC), The

Beijing News reported today. Pushing policies aimed at stimulating investment is

not enough, the newspaper said citing Du Liming, member of the NPC Standing

Committee, and local authorities should also be given the right to simplify the

administrative process to facilitate greater investment.

     Huawei must never cede to Washington pressure, as it is hard for the U.S.

to exclude the company from the telecom industry or the construction of a 5G

network, as Huawei is an industry leader with many licensing deals with major

American firms already in place, the Global Times said late Tuesday in an

editorial. The paper said "Washington is playing political tricks under a legal

pretext" and questioned why the U.S. commerce secretary, FBI director, homeland

security secretary and other senior officials attended a press conference when

the U.S. justice department announced charges against Huawei.

--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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