MNI China Press Digest, Oct 29: TMLF, Housing, Bond

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

on Tuesday:

     The PBOC is likely to conduct targeted medium-term lending facility (TMLF)

this week to offset the maturity of CNY590 billion reverse repos, as the central

bank generally conducts TMLF in the fourth week of the first month at the

beginning of a quarter, the China Securities Journal reported citing unnamed

analysts. The PBOC is also likely to increase cash injection via pledged

supplementary lending (PSL) to further support infrastructure investment, the

newspaper said citing Chen Wenhu, analyst at Zhongshan Securities.

     Chinese smaller property developers face increasingly higher costs and

difficulties obtaining capital as regulators rein in banks' lending to them by

ex-balance sheet channels, while overseas capital-raising becomes more

expensive, the 21st Century Business Herald reported citing Yan Yuejin, director

of the Shanghai-based E-house China Research and Development Institution. There

have been 408 property developers filing bankruptcy with courts by Oct 27, the

newspaper said citing court website. Housing prices may face corrections, Yan

was cited as saying.

     The yield on 10-year China Government Bonds is likely to stabilize around

3.3%, as the market expects the Chinese economy to pick up given improved

financial data in August and September, the China Securities Journal reported

citing Zhang Jiqiang, analyst at Huatai Securities. The faster medium- and

long-term credit growth will ease the downward pressure, the newspaper cited

Zhang as saying. The yield could still rise above 3.3% if the PBOC fails to

conduct TMLF as the market expects this week, the newspaper said citing Xie

Yunliang, analyst at Minsheng Securities.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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