MNI China Press Digest March 26: RRR Cut, PBOC Party Secretary

     BEIJING (MNI) - The following lists highlights from the Chinese press for

Monday:

     China's required reserve ratio needs to be steadily decreased to let

monetary policy return to a neutral status, Financial News reported, citing Peng

Xingyun, director of the monetary policy research office of the state-backed

think tank China Academy of Social Science. At the same time, credit growth in

general needs to be controlled, which is essential considering China's currently

prudent and neutral monetary policy, Peng told the newspaper.

China has named Guo Shuqing, current Chairman of China Banking and Insurance

Regulatory Commission, the new Communist Party Secretary of the People's Bank of

China, according to the New York Times. 

***Comments: Guo will be the supervisor of Yi Gang, the new PBOC governor, as

PBOC is still dependent on the Communist Party. The new regulatory design means

Guo will have a large say in monetary policy and in China's economy, as he also

serves as top regulator of the banking and insurance sectors. Former PBOC head

Zhou Xiaochuan was both governor and party secretary of the central bank.

     Property tax legislation and reform of personal income tax are both

steadily advancing, said newly elected Finance Minister Liu Kun on Sunday,

according to the official Communist Party newspaper People's Daily. Liu spoke at

China Development Forum, which gathers top Chinese officials and is held by a

think tank managed by the governing State Council. According to Liu, new

breakthroughs will be made in the reform of China's fiscal and taxation systems

this year, which marks the 40th anniversary of China opening up its economy to

the world.

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

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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