MNI China Press Digest, Nov 21: PBOC, Special Bonds, Banking

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

on Thursday:

     The PBOC should increase counter-cyclical adjustments instead of monetary

easing to counter economic downward pressure, as any easing signals would push

up housing prices and inflation, according to an editorial in the 21st Century

Business Herald. The current international monetary environment does not support

any loosening of Chinese monetary policy because the adoption of negative

interest rates in some countries indicates increased global risk, the Herald

said.

     China may increase the issuance of special purpose government bonds to CNY3

trillion in 2020, according to Ming Ming, Deputy Head of the Research Department

at Citic Securities. Ming's comments were reported in the China Securities

Journal in a report which also cites several other analysts. Zhu Jianfang, Chief

Economist with Citic Securities, told the Journal the central government would

tolerate an increase in the broad deficit in 2020 and use innovative policies to

alleviate the debt burden of local governments. Zhang Xu, Chief Analyst with

Everbright Securities said the central bank may lower interest rates again in

December.

     The China Banking and Insurance Regulatory Commission will guide banks to

increase lending to small companies while also stabilizing lending interest

rates, the China Securities Journal reported. Citing the Commission, the

Journal's report says the regulator will also promote the reform of the

commercial banking lending model. This would includes measure such as reducing

the reliance on collateral, increasing the proportion of credit loans, and

improving the loan renewal business.

--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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