MNI China Press Digest, March 5: Rate Cut, Consumption, 5G

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

on Thursday:

     The People's Bank of China (PBOC) does not necessarily have to lower its

policy rates in response to the surprise interest rate cut by the Federal

Reserve, according to Securities Times. In a front page commentary, the Times

noted the PBOC had already tapped monetary policies in early February including

cutting policy rates, conducting repos and providing relending to keep liquidity

ample. China's central bank should wait and see the impact of these measures

before deciding its next moves, the commentary said. 

     As production resumes amid the epidemic, China should expand domestic

demand, release suppressed consumption, and foster new consumption, according to

the standing committee of China's politburo. The official Xinhua News Agency

reported on a politburo meeting late on Wednesday which urged local authorities

to accelerate the construction of major projects, including the 5G network and

data centres. 

     China's infrastructure investment growth for the first two months of 2020

may decelerate to around 3% y/y, the Securities Daily reports. Citing Wang Qing,

chief macroeconomic analyst at credit rating agency Dongfang Jincheng, the Daily

reports that local authorities are beginning with traditional infrastructure

projects such as energy, transportation and water conservancy before promoting

new infrastructures such as the 5G network. New infrastructure investment could

reach CNY1 trillion in 2020, of which 5G base station investment may reach

CNY200-300 billion, Wang said. 

--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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