MNI China Press Digest, March 26: Fee Cuts, Premier Li, Yuan

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

Tuesday:

     A planned reduction in the social security rate paid by corporates is

expected to lower their contributions by CNY800 billion across the sector, the

Securities Daily reported today. The newspaper cited Zhang Yiqun, deputy

director of China Fiscal Budget and Performance Committee, who said the

reduction in the social security rate for corporates to 16% from the current 20%

on May 1 would greatly alleviate the labour costs of enterprises and help to

boost employment.

     China will respond to downward economic pressure through cuts in taxes and

fees rather than expanding the fiscal deficit and loosening monetary policy,

according to reports quoting Premier Li Keqiang. China Securities Daily reported

comments from Li, who said China would open up and stimulate the domestic market

with a view to maintaining growth in a reasonable and healthy range.

     Limited weakness in the US dollar combined with slower economic growth in

China would prevent an appreciation in the yuan, the China Securities Journal

reported today. The Journal said was unlikely that the yuan would rise or fall

unilaterally this year, saying the currency would remain stable.

--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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