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     BEIJING (MNI) - The following are highlights from the China press for
Thursday, Dec. 14
     The reform movement to push mixed public-private ownership and
restructuring of state-owned enterprises will accelerate in 2018, the Economic
Information Daily reported Thursday. Regulators will enhance controls on SOE
funding, particularly for companies run by the central government. The new round
of mixed-ownership reform will focus on monopoly sectors including oil, gas and
railways, the report said, adding that sectors suffering excess capacity, such
as steel, coal and electricity generation, are also main targets. In the next
three years, deleveraging of SOEs finances will be stressed, which will impact
the overall level of fixed-asset investment, the report noted. (Economic
Information Daily)
     The momentum to tighten regulation of the asset management sector will not
change and regulators will remove asset management risks in an orderly and
steady manner, the Financial News, a journal run by the People's Bank of China
said in a commentary Thursday. Vested interest groups are trying to obstruct the
launch of the new regulations with the excuse that the new rules would cause
systemic risks, the commentary warned. Financial institutions will suffer some
short-term pain under the new regulations, and even see their asset management
businesses shrink, but regulators will not change course considering the
excessive financial market volatility that was triggered by the messy asset
management sector in recent years, the commentary stressed. (Financial News)
     China cannot simply follow the U.S government tax cut with one of its own,
as the country needs strong fiscal support and should maintain operating
efficiency improvement of state-owned enterprises as the top priority, the
Securities Times reported Thursday. China needs to increase its productivity and
maintain low aggregate costs to compete with the U.S, the report said. The U.S
can issue government bonds to supplement fiscal shortages and transfer crises,
but China can not. Chinese companies need to improve their core competitiveness
and should not rely on a tax cut, the report noted. In practice, China has
reduced its taxes by replacing the business tax with a value-added tax (VAT) and
removing many administrative fees, the report argued. (Securities Times)
--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com
--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com
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