MNI China Press Digest, Nov 28: Infrastructure, PBOC, Housing

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

on Thursday:

     China has moved to tighten regulations on capital for infrastructure

projects, Xinhua News Agency reports. Citing a document released by the State

Council late Thursday, Xinhua says the regulations stipulate that borrowed funds

and shareholder loans should not be used as project capital. Raising capital for

investment projects should not increase the hidden debts of local government or

violate requirements on the asset-liability ratio of state-owned enterprises,

the document says.

     The PBOC does not need to tighten monetary policy despite recent rises in

CPI, according to Ming Ming, an analyst with Citic Securities, as reported in

Financial News. Wang Jingwen, an analyst with Mingsheng Securities, also told

the newspaper that China's CPI would peak at Q1 of 2020. Wang said that current

structural inflation is hard to transform into overall inflation as the money

supply stays stable.

     The government should keep the real estate market stable and manage

expectations for housing prices, according to an op-ed published by the China

Securities Journal. The Journal said tight control over speculation in the real

estate market should be maintained, but the Government should also ensure that

house prices do not fall sharply.

--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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