MNI China Press Digest Mar 22: Q2 Easing, Rebound, Tax Rebate

The following lists highlights from Chinese press reports on Tuesday:

• The People’s Bank of China may cut banks’ reserve requirement ratios in Q2, which will guide the Loan Prime Rateb (LPR) lower by 5 bps and rate on medium-term lending facility (MLF) down by 10 bps, the Securities Daily said citing analyst Wang Qing of Golden Credit Rating. China’s inflation remains mild, leaving space for policy maneuvering, it said. More easing policies are expected after policymakers last week called for greater support for growth, it said.
• China's property market is expected to stabilize by the middle of this year, as the real estate financing environment improves and more cities relax housing regulations, the PBOC-run Financial News reported citing analysts. Banks have lowered mortgage interest rates and shortened the approval process, with the rate in 103 key cities falling by 13 bps to 5.34% in March, the newspaper said. With increased external uncertainties, policymakers will have stronger determination to revitalize the market and prevent and defuse developers’ risks, the newspaper said.
• China reaffirmed its commitment to large-scale tax cuts and rebates, including CNY1.5 trillion in rebates of value-added tax to help small businesses and support growth, Xinhua News Agency said citing a State Council meeting on Monday. The meeting urged officials to pay high attention to changes in the global situation, increase monetary policy support and use multiple tools to ensure liquidity and growth in credit and social finance, it said.