MNI China Press Digest, March 22: Growth, Sino-U.S., RRR Cuts

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

Friday:

     China's growth rate could continue to fall below the 6 - 6.5% target range

as current stimulus measures fall short, according to a leading analyst from

CITIC Securities. In a report published today, Ming Ming, chief fixed-income

analyst at CITIC Securities, says current policies to stimulate growth are short

term measures to stabilize growth which fall short of previous actions. Ming

says that because of this, any economic rebound will be limited and take longer.

He says that faced with this scenario, the PBOC may use price-based monetary

policy tools to stabilize the economy, as the subsequent downturn in global

economy may put pressures back on risk assets.

     China's Ministry of Commerce has released the schedule for the next two

rounds of China-US trade talks, suggesting that the consultations may be

entering the final stage, the Global Times reported today. Citing Bai Ming,

deputy director of the International Market Research Institute affiliated with

the MOFCOM, the report says the release of the two schedules at the same time

means the result of a single round will not impede the overall process.

Normally, the consultation schedule can only be arranged after the end of the

previous round, the newspaper said, citing Bai.

     The PBOC should cut the reserve requirement ratio at least three times this

year, according to a leading analyst. The China Securities journal cited Ren

Zeping, chief economist at the Evergrande Research Institute, who told the

newspaper that with RRRs for large banks and small and medium-sized banks as

high as 13.5% and 11.5%, there was an opportunity for cuts. Ren also said that

the PBOC is more likely to cut interest rates as a result of the Fed's interest

rate hike coming to an end and the Sino-U.S. interest rate spread expanding,

along with an easing both in the depreciation pressure on the yuan and in the

trade dispute.

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

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

[TOPICS: M$A$$$,M$Q$$$,MI$$$$]