MNI China Press Digest, March 12: State Council, 5G, Bond

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

on Thursday:

     China should step up the introduction of targeted reserve requirement ratio

(RRR) cuts and specifically lower the RRR for joint-stock banks, according to a

statement on the government website. Citing the State Council executive meeting

on Wednesday night, the statement said cuts would enable commercial banks to

increase lending for small companies and therefore help the resumption of

production through driving down financing costs.

     China will stabilize foreign trade and investment through the promotion of

a tax rebate for export products and guide financial institutions to increase

lending to trade companies, according to a statement on the government website.

Citing the State Council executive meeting on Wednesday night, the statement

said China would also strengthen international coordination to smooth global

supply chains through measures such as increasing the number of international

cargo flights. 

     China is expected to finance CNY2 to CNY3 trillion this year in high-tech

"new infrastructure" initiatives including 5G and high voltage electricity

transmission, according to Securities Daily. Citing Liu Xiangdong, deputy

director of Research Department under the China Center for International

Economic Exchange, the newspaper said building "new infrastructure" is an

important measure to stabilize investment, and there is huge potential demand

for these projects which can also attract social capital. 

     The People's Bank of China and the China Securities Regulatory Commission

will provide a better policy environment to support bond issuance by private

companies, according to a report in the Shanghai Securities Journal. The

authorities will also strengthen the monitoring and early warning of default

risks, and improve the market-based approach to handling defaults, the newspaper

said. 

--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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