MNI China Press Digest, May 17: Bonds, Supply-Chain, Housing

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

Thursday:

     Three measures can be taken to alleviate recent corporate bonds default

concerns: providing more funding to private companies; deleveraging state-owned

enterprises; and calling for financial institutions to examine potential risks,

said Cai Hao, the head of Macro Economy Research Center of Heng Feng Bank

Research Bureau, in Thursday's Economic Information Daily. Companies whose debt

scale is large and who find it difficult to get funding should also be supported

for some time, to prevent regional and systemic risks, said Cai.

     Around 10 provinces have been competing to lead in supply-chain

innovations, an important part of supply-side reforms, by offering more

supporting policies on supply chains, and the central government is preparing to

publish more of such policies, reported Economic Information Daily on Thursday.

Supply-chain innovation will decrease the inventory levels of products, lower

the transactions costs of intermediate and product prices, and thus encourage

consumption, said the report, citing Wang Yanwu, associate professor at Macro

Economy Studies Center at Xiamen University.

     Ministry of Housing and Urban-Rural Development has talked to local

governments of 12 cities, including Hai Kou and Harbin, whose housing prices

have risen too rapidly recently, reported Shanghai Securities Journal on

Thursday. After the talks, some of these cities immediately published price

control policies on the property market to contain speculation, the report said.

MOHURD has iterated that controls on the property market will not be relaxed; in

fact, analysts expect more controlling measures to be put into place in May,

including restricting purchasing and selling and adjusting mortgage rates, the

report said, citing Xia Dan, the senior researcher at Bank of Communications

Financial Research Center.

--MNI Beijing Bureau; +86 10 85325998; email: he.wei@marketnews.com

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

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