MNI China Press Digest, Jan 6: CPI, GDP, Manufactures Cost Cut

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

on Monday:

     China's CPI increased in the latter part of 2019 and will come in at

between 4.5% and 4.8% for the period to December 2019, according to analysts

quoted by the Economic Information Daily. Citing Qing Tai, a senior analyst with

Shenwan Hongyuan Securities, the Daily's report says meat prices will fall in

the second half of 2020 and CPI will fall below 2% y/y in Q4.

     China's GDP growth will not fall below 6.1% in 2019 and is expected to stay

above 6% in 2020, the Shanghai Securities Journal reports. Citing Sheng

Songcheng, a councillor in the Shanghai municipal government, the report says

that while investment growth hit a historic low in 2019, high-tech investment

growth accelerated to 14.1% y/y in the first 11 months, 8.9 percentage points

faster than total investment. Sheng predicted that investment in high-tech

industries would account for more than 30% of overall investment in five years,

and more than 50% in ten years.

     The cost of power for Chinese manufacturers could be reduced by CNY50-60

billion with telecommunications costs coming down by CNY60 billion, according to

a report in the Securities Daily. The forecasts were made Liu Xiangdong, the

deputy director of the Economic Research Department at the China Center for

International Economic Exchanges. The Daily also cited Zhang Yiqun, a member of

the Society of Public Finance of China, who said that having reached a certain

scale already, tax reductions for the manufacturing sector would be focused on

cutting the cost of power, communications and transportation.

--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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