MNI China Press Digest, Oct 18: Rate Cut, Pork Price, Mortgage

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

on Friday:

     The PBOC is unlikely to cut interest rates this year, the Securities Daily

reported. Citing Zhang Jun, chief economist at Morgan Stanley Huaxin Securities,

the report says China's economic growth is unlikely to stall, and monetary

policy should remain stable while economic fundamentals are resilient. With the

early issuance of next year's local government special bonds, banks will

increase lending and optimize the medium and long-term loan structure and this

is expected to underpin the economy, Zhang said.

     China's pig production is expected to improve in Q4 although pork supply

will remain tight in the short-term, according to China Securities Journal.

Citing the Ministry of Agriculture and Rural Affairs, the report says the short

term shortage will keep prices high until February 2020. The government will

soon issue CNY300 million in subsidies for the construction of pig farms, as

well as CNY700 million in a reward fund to encourage pig production, the

newspaper said citing the ministry.

     China's household debt is growing at a fast pace and housing mortgages

account for almost 60% of all household debt, according to a report in the China

Securities Journal. Citing research on leverage ratios among Chinese households,

the report says 47.1% of the mortgages are on vacant houses. According to Gan

Li, director of China Family Finance Survey and Research Center, this represents

a waste of credit resources. Gan recommended an increase in the down payment

ratio for second homes, the Journal report said.

--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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