MNI China Press Digest, Nov 27: Liquidity, LGBs, Recapitalize

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

on Wednesday:

     The People's Bank of China may not conduct open market operations (OMO)

again until December, according to a report in the China Securities Journal.

Citing analysts, the Journal's report says that although the PBOC has suspended

OMO for 5 days, liquidity has been stable. Since fiscal spending is expected at

the end of the month, liquidity will continue to be adequate. 

     China Securities Journal also reports that the Finance Ministry of China

has allocated quotas for next year's Government Special Purpose Bonds to

provinces. The report said it is still not clear whether the government will

move next year's bond sales to this year. Zhang Xu, the Chief Analyst with

Everbright Securities, forecast an increase in these bonds next year. 

     More medium and small banks in China are expected to issue perpetual bonds

as the central bank pushes them to recapitalize, Shanghai Securities News

reports. Two regional banks - Huishang Bank and Taizhou Bank - have been

approved to issue bonds to replenish capital.

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com

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

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