MNI China Press Digest, Nov 15: Private Firms, Credits, Banks

     BEIJING (MNI) - The following are highlights from Thursday's Chinese press:

     The Ministry of Commerce will remove administration fees, promote export

tax rebates and trade financing to help boost private enterprises, the People's

Daily said Thursday, citing Zhong Shan, the Commerce Minister. The Ministry will

also encourage private companies to take part in the Import Export, Canton Fair

and overseas exhibitions, and to develop inside the pilot Free Trade Zone and

other economic and trade cooperation zones abroad, the Daily said citing Zhong.

Private enterprises contribute 90% of domestic trade, 48% of foreign exports,

and 49% of foreign investment, Zhong said, expecting private companies to play a

bigger role in boosting consumption and expanding foreign trade. (Link to the

story: https://bit.ly/2FpX39X)

     The slowdown in China's October money supply and credit growth is mainly

due to banks' unwillingness to increase credit and not a fault of monetary

policy, the Securities Times said in a front-page commentary Thursday. Banks

still have a low appetite for risk amid the economic downturn, and are hindered

by factors like the slowdown of deposit growth, insufficient capital, pressure

on asset quality and fear of regulations, the newspaper said. (Link to the

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

     Foreign-funded banks in Shanghai replaced Chinese banks as the main credit

providers in October, The Paper said late Wednesday, citing data released by the

central bank's Shanghai branch. In October, loans issued by Chinese banks

decreased by CNY7.439 billion, a decline of CNY52.039 billion y/y; while loans

issued by foreign banks increased by CNY27.977 billion, a rise of 22.987 billion

y/y. It is quite rare that the credit supply from foreign banks far exceeds that

of Chinese banks, The Paper said. Correspondingly, new yuan loans in October

decreased CNY1.637 billion, while foreign currency loans surged by USD1.921

billion in a single month, The Paper said. (Link to the story:

https://bit.ly/2DHiQIL)

--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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