MNI China Press Digest, March 1: Mortgage, LGBs, Reform

     BEIJING (MNI) - The following lists highlights from Friday's China press:

     There has been no change to China's mortgage loan policy, the Beijing News

reports, countering market speculation that restrictions are being relaxed to

support the real estate market. The News quoted Liu Chunhang, head of the

Statistics Department at China Banking and Insurance Regulatory

Commission(CBIRC), who said the CBIRC would continue to carry out stricter

controls on speculative buyers through raising the down payment ratio and

adjusting the risk pricing of interest rates.

     A total of CNY776.84 billion in local government bonds were issued in

January and February, bringing to more than CNY1 trillion the total issuance in

Q1, the Securities Daily reported today. Analysts told the Daily that because

most of the funds would be used for major projects such as highways, urban rail,

water conservancy, anti-pollution and shantytown renovation, the infrastructure

investment was expected to drive an economic rebound this year.

     The China Banking and Insurance Regulatory Commission(CBIRC) will move to

increase the number of small and medium-sized banks and insurers and expand

their businesses, according to The Paper. Citing Xiao Yuangi, the CBIRC's chief

risk officer and spokesman, The Paper says the measures are the first step in

promoting supply-side reform in the financial sector, and that more foreign

financial institutions will also be added.

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

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

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