MNI China Press Digest, March 19: Yuan, Property Tax, Housing

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

Tuesday:

     The yuan is stuck in a tight range around CNY 6.71 against the US dollar,

awaiting fresh direction from the wider Dollar Index, said Guan Tao, a senior

researcher at the China Finance 40 Forum, the Securities Times reported. He

attributed the recent appreciation of the yuan to counter-cyclical controls

which made it easier for the yuan "to rise than fall", increased yuan demand in

the FX market, and the overall weaker dollar index.

     China's incoming property tax will not significantly increase the tax

burden on ordinary families, reported the Securities Daily. The newspaper cited

Huang Zhilong, director of the Macroeconomic Research Center at Suning Institute

of Finance, who said that even if the tax is fully levied, policymakers will

implement defined tax-free areas or a tax rebate plan for ordinary families.

     Policymakers should maintain previous housing policies which promoted

diversified supply and cracked down on speculation, according to a commentary in

Financial News published today. The newspaper warned that without a clear signal

from policymakers, the housing market would be unable to adjust on its own.

--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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