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MNI China Press Digest, March 7: VAT, Rate Cut, Open Market

     BEIJING (MNI) - The following lists highlights from Chinese press reports
on Thursday:
     Lowering the VAT rates may reduce taxes by CNY800 billion, a large share of
the CNY2 trillion total, said Economic Information Daily today citing the
calculation by Hu Yijian, professor at the Shanghai University of Finance and
Economics.
     Premier Li Keqiang's work report sent a clear signal of rate cuts, the
China Business News said today citing Ming Ming, chief analyst at CITIC
Securities. Ming noted that for the first time in recent years, the annual
report indicated "the authority may use quantitative and price instruments, such
as reserve requirement ratio and interest rates, to guide financial institutions
expanding credit and lowering lending cost," the newspaper reported.
     Allowing more foreign banks, insurance and brokerage firms to enter the
Chinese market can play a positive role with little risks, said Shanghai
Securities News citing Guo Shuqing, chairman of the China Banking and Insurance
Regulatory Commission. China has the conditions and experiences for an open and
stable financial market, the newspaper said citing Guo.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com
--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com
[TOPICS: M$A$$$,M$Q$$$,MBQ$$$]

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