MNI China Press Digest, Nov 28: Fiscal, CRMW, Real Estate

     BEIJING (MNI) - The following lists highlights from Wednesday's Chinese

press:

     Fiscal policy should play a greater role in stabilizing economic growth,

and there is still room for the government to increase its deficit/GDP ratio,

the Economic Information Daily reported Wednesday, citing Yu Yongding, a member

of the Chinese Academy of Social Sciences. Policymakers can break the 3%

deficit-to-GDP ceiling if necessary, and fiscal expenditure should further

increase to support infrastructure investment, the Daily said, citing Yu.

Although China's financial system is still relatively fragile, there are

sufficient tools to stabilize the financial system, the report added citing Yu.

(Link to the story: https://bit.ly/2rhbH9P)

     In the last month, banks have established 28 Credit Risk Mitigation

Warrants(CRMWs) worth CNY3.6 billion to cover private enterprise bond issuance

totalling around CNY10 billion, the Economic Information Daily said Wednesday.

When there is a default in those private corporate bonds, CRMW underwriters are

required to either pay compensation to investors for losses or buy the bond at

the original price, the Daily said. With the backing of CRMWs, private-sector

financing costs have seen an obvious decline, with lower interest rates on bond

issues, the paper said. (Link to the story: https://bit.ly/2QqA96s)

     Cooling home sales has dampened real estate developers' willingness to

invest in new projects, the 21st Century Business Herald reported Wednesday,

citing data released by the National Bureau of Statistics. The indicator, a

gauge of developers' new investment intentions, recorded still strong 34.2% y/y

growth from January to October, slowing 1.7pp from the Jan-Sept period, the NBS

data showed, according to the paper. New investment intentions in 17 cities --

mainly tier 1 and 2 cities in East China including Guangzhou and Shenzhen --

recorded negative growth, while the main cities in Middle and Western China saw

buoyant growth, the newspaper said. (Link to the story: https://bit.ly/2FLKOof)

--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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