MNI China Press Digest July 24: Li, Property, MLF

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

Tuesday:

     China's fiscal policy should work alongside its monetary policy to serve

the real economy more efficiently, stated Chinese Premier Li Keqiang, according

to Xinhua News Agency. China will avoid a deluge of new stimulus policies,

instead tailoring policies to different situations and maintaining stable macro

policies, Li said, according to Xinhua. Local governments should accelerate the

pace of issuing government bonds, using a total of CNY1.35 trillion in such

bonds to support infrastructure projects, Li added. China will ensure that the

state financing guarantee fund is delivered, targeting CNY140 billion in loans

for 150 thousand small- and micro-sized enterprises, Li said, according to

Xinhua.

     Uncertainties in real estate market will increase significantly with the

strengthening of regulation, tighter finances, and the promotion of property

tax, Economic Information Daily reported. China's real estate market has seen

the longest stretch of housing price rises since June 2015 at 37 months, the

newspaper said, citing Zhang Dawei, chief analyst of Centraline Property.

Shantytown renovation funding has not had the desired effect of reducing real

estate inventories, due to the excessive growth of housing prices in some

cities. Monetization of shantytown renovation and other destocking policies may

fade out in the second half of the year, the newspaper added.

     The PBOC's increase of low-cost and medium-term liquidity supply will boost

financial institutions' provision of credit and will alleviate the tight credit

situation, China Securities Journal reported. The PBOC injected CNY502 billion

into the market via medium-term lending facilities (MLF) loans yesterday after

continuous net injections via open market operations, which the newspaper

described as "shocking". This move is consistent, however, with the PBOC's

broadening of the types of collateral accepted in MLF funds, and with the

provision of MLF funds for credit investment, the newspaper said. The PBOC's new

policies may shift its focus to loosening credit to avoid a significant decline

in social financing, the newspaper added, citing institutions.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: sherry.qin@marketnews.com

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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