MNI China Press Digest, Sept 18: Easing, Rate Cut, Fiscal

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

on Wednesday:

     Any further easing in China's monetary policy will be restrained by the

upward CPI and by imperfect credit transmission mechanisms, Shanghai Securities

News said. The liquidity released by the earlier reserve requirement ratio cut

and the renewal of CNY200 billion of medium-term lending facility is reasonable

and ample, the newspaper said. 

     The PBOC is more likely to cut interest rates in November than in

September, Securities Times reported. Citing Zhang Yu, chief analyst at

Huachuang Securities, the Times report said the PBOC could lower the rate of

medium-term lending facility (MLF) on November 5 when some MLF is set to mature.

The pricing of the loan prime rate (LPR) in September and October would also

affect the central bank's rate cut decision, the newspaper said, adding that the

market is expecting a lower LPR this month. 

     Reduced revenue from tax cuts is both expected and affordable for Chinese

authorities, according to a report in Economic Daily. Citing Bai Jingming,

deputy director of the Chinese Academy of Fiscal Sciences, the report said the

cuts have promoted economic growth and boosted the tax base, which will have a

positive impact on the fiscal balance in the long run. National fiscal revenue

grew 3.2% y/y in the first eight months, decelerating 6.2 percentage points from

same period last year, the newspaper added. 

--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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