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

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