MNI China Press Digest May 4: Investment Boom, Microbusiness

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

Friday:

     Local governments are planning to expand domestic demand and further

liberalize in order to boost economic growth, Shanghai Securities Journal

reported. Investment is regarded as an important growth driver, and the

construction of large infrastructure projects is speeding up, the Journal

concluded. For example, Jiangsu province plans to invest CNY3.5 trillion in 240

projects, while Jilin province plans to invest CNY1.7 trillion in 2184 projects,

the Journal said. Local governments speeding up their construction plans will

contribute to China's stable economic growth this year, the Journal said, citing

Chen Yanli, analyst at Shanghai Securities.

     China Banking and Insurance Regulatory Commission is considering further

increasing credit support for microbusinesses, Economic Information Daily

reported, citing Wang Zhaoxing, deputy chairman of the commission. The

commission is coming up with a system to access loan interest rates for

microbusinesses, Wang said. CBIRC's next step will be to place more requirements

on commercial banks to support the growth of microbusinesses. One requirement

will be to ensure that the growth rate of loans to the segment is not lower than

the growth rate of loans to all other segments, Wang noted. 

     Shanghai will look to start the Shanghai-London stock connect this year, as

well as other measures aimed at opening up its financial sector, said Li Jun,

deputy director at office of finance service, China Securities Journal reported.

Shanghai will lead Chinese cities to make breakthroughs in increasing foreign

share ownership and expanding foreign companies' operation in China, Li was

cited by the newspaper as saying. The city will also facilitate the

internationalization of the yuan, Li said.

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

--MNI Singapore Bureau; +65 8233 2326; email: Asia-Editor@marketnews.com

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