MNI China Press Digest, Sept 4: Bonds, Zambia

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

Tuesday:

     As China's deleveraging deepens, an increasing number of bonds have been

cancelled or postponed, Economic Information Daily reported. 531 bonds worth

CNY330 billion were cancelled or postponed this year so far. In August alone, 75

bonds worth CNY46.12 were cancelled or postponed, the newspaper said. The main

reason is that issuers and investors could not reach a consensus in coupon

rates, the newspaper said, citing Zhang Xu, a chief analyst at Everbright

Securities. The situation reflects the tightening financing environment of

credit bonds, according to other industry insiders.

     Foreign financial institutions have increased their holdings of

yuan-denominated bonds, but the added volume slowed in July from June, Economic

Daily reported. Financial institutions outside of China purchased CNY66.526

billion in yuan-denominated bonds through China Central Depository and Clearing

Corporation and Shanghai Clearing House in July, with the total of such bonds

held by these institutions reaching CNY 1612.292 billion. However, the new added

volume had been higher in June at CNY110.369 billion in yuan-denominated bonds,

the report said.

     Investment into the Zambia-China Economic Trade and Cooperation Zone

reached USD1.9 billion, and 50 companies have established their branches in the

district since 2007, Economic Information Daily reported. Revenue of the

companies in the zone reached CNY14 billion, creating 8000 jobs, the newspaper

said, reporting on the China-Africa Forum that China is hosting in Beijing this

week. More than 17 central SOEs currently cooperate with companies in Zambia on

resources, infrastructure, manufacturing and agriculture, the report said. China

encourages central SOEs to deepen cooperation with Zambia to further improve

bilateral economic and trade cooperation, said Xiao Yaqing, head of China's

state-owned assets regulator, according to the newspaper.

--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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