MNI China Press Digest, Nov 12: Loans, Liquidity, Investment

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

Monday:

     China's new bank lending requirement to boost loans to private companies to

account for no less than 50% of new corporate loans is for the entire industry,

not an assessment target for each bank, the Securities Daily said Monday, citing

an anonymous banking regulator. Guo Shuqing, chairman of the China Banking and

Insurance Regulatory Commission first said last Thursday that policymakers are

considering setting lending goals for banks. It will be unrealistic to set the

same lending target for every bank, as each has different positions and clients.

No specific targets will be proposed for individual banks, nor will they be

ordered to meet targets, the newspaper said citing the regulator. (Link to the

story: https://bit.ly/2PkPrtU)

     China's central bank may not follow a Fed interest rate hike in December,

but continue to keep liquidity at a "reasonable and ample" level via reserve

requirement ratio cuts, reverse repos and the medium-term lending facility, said

Securities Daily Monday, citing Wang Qing, chief macroeconomic analyst at credit

rating agency Dongfang Jincheng. The central bank's latest monetary policy

report shows that current liquidity is still failing to flow into the real

economy, Wang said. Before the tight credit condition eases, money market rates

are unlikely to turn higher, the Daily said, citing Wang. Policymakers will

continue to guide funds to serve private and small companies via expanding

credit limits, lowering loan interest rates, providing guarantees and

rediscounting, the report said. (Link to the story: https://bit.ly/2zK65s9)

     China's policy planners should actively promote investment projects to

private investors, so as to consolidate the current good growth momentum seen

across private investment, the China News Services said Saturday, citing Ning

Jizhe, deputy director of the National Development and Reform Commission(NDRC),

who pledged to remove obstacles for private companies. The NDRC has presented a

batch of projects in line with the national industrial policy with investment

return on private capital, mainly in the areas of transportation and energy,

environmental protection, Ning said. China's private investment continued to

pick up this year, with a growth rate of more than 8%, accounting for about 60%

of the total investment, the newspaper said. (Link to the story:

https://bit.ly/2QFH497)

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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