MNI China Press Digest, Oct. 25: Market, Housing, Tax Cuts

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

Thursday:

     Ten listed companies in Shenzhen say they have not yet received expected

bailout funds provided by state-owned enterprises (SOEs), or "are currently in

contact and negotiation stage", or "have no recent progress", The Paper reported

on Thursday. The Shenzhen government has initiated plans to inject tens of

billions of funds to ease liquidity pressures on local listed firms amid the

recent A-share rout, mainly by allowing SOEs to purchase shares, with the

Securities Times reporting Tuesday that the first batch of funds has been

issued. The A-share market rallied, pushing the Shanghai Composite Index back

above 2,600 on Wednesday, fuelled -- in part -- by the news, The Paper said.

(Link to the story: https://bit.ly/2z28qP1)

     Banks in home buyer hotspots including Beijing, Guangzhou, Hangzhou and

Foshan cities have started to cut the mortgage interest rate, 21st Century

Business Herald reported Thursday. It is the first time the cities have seen a

simultaneous mortgage rate move since last year's coordinated hikes that came

when a series of policies were introduced to cool the overheating housing

market. A loan manager at Minsheng Bank in Beijing told the paper that the rate

for a first home purchase is now around 5.75%, or 15% above the 4.9% benchmark

rate, compared to around 6% recently. However, the rate in other two first-tire

cities, Shenzhen and Shanghai remains unchanged, with no signs of a downward

adjustment, the newspaper said. (Link to the story: https://bit.ly/2JdWXR2)

     The tax cuts for individuals will bring about a direct increase in

disposable income, thereby boosting consumption, and is expected to play a

strong role in driving economic growth, said the Securities Daily on Thursday.

The as yet finalised tax deduction plan looks to deduct the cost of child

education, medical care on severe illness, elderly care, mortgage and rent, is

expected to fully cut the tax burn for taxpayers with a monthly salary of around

CNY10,000 yuan, the Daily said. However, more supporting measures are required

to truly stimulate consumption, such as increasing financial support and

reducing import tariffs on consumer goods, the newspaper said. (Link to the

story: https://bit.ly/2D7c6n0)

--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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