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COMMODITIES

Silver Up Sharply As USD Weakens

     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
[TOPICS: M$A$$$,M$Q$$$,MI$$$$]