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Market Sentiment Provides Key Driver

     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:
--MNI Sydney Bureau; +61 405322399; email:
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