MNI China Press Digest: Tuesday, January 16

     BEIJING (MNI) - Highlights from China press for Tuesday, January 16:

     China will maintain financial deleveraging and purchase curbs for the

property market to help promote quality growth and control financial risks, said

Economic Information Daily. 

- Fewer mortgages will be provided and mortgage rates are expected to increase

at a slow pace: daily cites experts; 

- Some banks report bigger mortgage quotas, faster pace of approval than last

year, with varying paces of approvals;

*** TAKE AWAY: Housing market remains under tight controls, but some banks are

relaxing mortgage approvals.

     PBOC will maintain a prudent and neutral monetary policy, People's Daily

said citing Ruan Jianhong, head of central bank's statistics and analysis

bureau. 

- M2 growth lower than before will become a "new normal": Ruan 

- Slower M2 data seen from release last week means banks' money are used more in

line with official guidance: Ruan 

*** TAKE AWAY: PBOC accepts slower M2 growth as normal.

     China's money market rates will likely rise given stricter regulations

applied to the bond market: China Securities Journal. 

- Regulators issued 10 sets of rules and draft acts seeking feedback in less

than half a month: journal 

- More policies push up bond yield: 10-year China Development Bank bonds may

rise to 5% (currently just over 4%): journal cited analysts 

- 10-year CDB bond yield may rise to 5.3%; 10-year treasury bond yield may reach

4.3%: newspaper cited an analyst.

*** TAKE AWAY: More bond market regulations seen pushing up yields.

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

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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