MNI China Press Digest, Sept 4: LGBs, Rate Cut, Pork Prices

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

on Wednesday:

     Beijing will grant next year's quota of local government bond issuance in

advance, 21st Century Business Herald reported late Tuesday. In theory, the

maximum value of new local government bonds which can be issued in advance this

year is CNY1.85 trillion, which includes CNY558 billion of general bonds and

CNY1.29 trillion of special bonds, the newspaper said. Local government

authorities are required to report the funding priorities for the bonds,

according to the Herald report.

     The PBOC is likely to lower the interest rate on the medium-term lending

facility (MLF) in mid-September, given that the U.S. Federal Reserve is expected

to cut interest rates this month, China Securities Journal reported. The fact

that interbank deposit rates have been significantly lower than MLF rates was

another driver for lower MLF rates, the newspaper said. Citing Wang Yifeng,

chief banking analyst at Everbright Securities, the Journal said the reduction

of MLF rates could also drive down the Loan Prime Rate (LPR) and guide lending

rates lower.

     China has rolled out a series of measures to stabilize pork production and

ensure pork supplies in a bid to curb soaring prices, the People's Daily

Overseas Edition reported. Relevant departments must eliminate market panic,

crack down on illegal hoarding and price hike collusion, the newspaper said. The

weekly average price of pork in 16 cities was CNY35.63, up 92.3% y/y and 9.3%

m/m, the newspaper reported citing data by the Ministry of Agriculture.

--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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