MNI China Press Digest, Sept 19: Li, Local Bonds, Property

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

Wednesday:

     Chinese Premier Li Keqiang stressed that China should deepen the opening up

of its economy, and announced measures to stabilise the growth of exports and

imports, according to the official Xinhua News Agency. At the regular State

Council meeting held by Li, officials concluded China should cut taxes during

"complicated global situations." China "should not overly rely on investment,

nor give up on investment", and should work to prevent large fluctuations in

investment growth to ensure stable employment and supply-side reform. China

should increase credit access to companies involved in international trade,

especially small- and medium-sized companies.

     Shenzhen Stock Exchange saw its largest local government bond issuance on

Tuesday, valued at more than CNY98 billion, China Securities Journal reported.

Of the total, Hebei Province issued around CNY42.7 billion, Shaanxi around

CNY16.5 billion, and Hubei around CNY38.7 billion, the report said. The issued

bonds range from special bonds for land acquisitions and shanty-town renovation,

as well as bonds for improving healthcare and sanitation, the newspaper said.

     Authorities are drafting rules to partly cut income tax according to

mortgage rates and rent costs, Securities Daily reported. The effects of this

measure would be similar to those from lowering mortgage rates, which is

positive for the property market, while reducing rental costs will also increase

apartment rentals, said Huang Zhilong, director of macro-economy research center

of Suning Finance Research Institute. More families will consider buying or

renting a house with these new rules, which could thus increase property sales

and push up housing costs, said Zhang Yiqun, head of Jilin Province Academy of

Fiscal Sciences.

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

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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