MNI China Press Digest, Nov 14: Infrastructure, CPI, Liquidity

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

on Thursday:

     China will lower the minimum proportion of the capital contribution

required for some infrastructure projects by up to 5% in a bid to drive

investment in the asset class, said the State Council's executive meeting on

Wednesday. According to a statement on the government website, contributions for

port, coastal and inland waterway transport projects will be lowered to 20% from

25%. Meanwhile, capital funds for infrastructure projects can be raised through

the issuance of equity-based financial instruments, although this proportion

should be no more than 50% of the total capital, the statement said.

     China will post annual CPI of between 2.5% to 3% for 2019 even if inflation

continues to rise in Q4 from October's 3.8%, the China Securities Journal

reported. Citing Lian Ping, the chief economist at the Bank of Communications,

the Journal's report said the only factor which could push the CPI higher was

the rising price of pork. Fuel cost increases will be limited due to low

international crude oil prices, while housing and rental costs have little

momentum to grow amid tightening regulations. Cutting import tariffs on daily

necessities and automobiles to expand imports would also inhibit the rise in

consumer prices, Lian said.

     The PBOC may restart injecting liquidity via reverse repos this week to

meet the demands of tax payments, the China Securities Journal reported. Citing

analysts, the Journal's report said that liquidity had tightened after the PBOC

skipped reverse repos for 13 days and interbank deposit repo rates increased. 

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

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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