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MNI China Press Digest, March 17: LPR, Export ,Work Resumption

     BEIJING (MNI) - The following lists highlights from Chinese press reports
on Tuesday:
     China's one-year Loan Prime Rate, the new loan price basis launched by the
central bank, is expected to be lowered by 5bps to 4% on Friday, according to
the China Securities Journal. The Journal's report says the rate cut is expected
even though the People's Bank of China (PBOC) kept the rate unchanged for the
CNY100 billion in Midterm Lending Facility yesterday. Citing Wen Bin, the chief
analyst with Minsheng Bank, the Journal said the banks can save CNY8.5 billion
in interest costs annually thanks to the targeted reserve-deposit ratio cut
implemented by the PBOC yesterday, which guides banks to lower financing costs
in the real economy.
     The spread of coronavirus in some countries will have a limited impact on
the recovery of the Chinese economy as net exports only account for 1% to 2% of
GDP, China Securities Journal reports quoting Wang Yupeng, the chief analyst
with Dongxing Securities. Zhu Jianfang, the chief analyst with Citic Securities
told the Journal that most of the policies to stabilize the economy will be
announced in Q2, including lowering the deposit benchmark rate and increasing
the deficit to GDP ratio.
     China should accelerate the comprehensive resumption of work and production
and restore the normal order of living, according to a statement from the
Central Leading Group for the Coronavirus Epidemic. The statement, posted on the
government website, said China should prevent cross-border COVID-19 cases - both
incoming and outgoing - and follow up on epidemic controls.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: archie.zhang@marketnews.com
--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com
[TOPICS: M$A$$$,M$Q$$$,MI$$$$]

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