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     BEIJING (MNI) - China, faced with increasing economic headwinds, will
broadly cut taxes and fees, allow local governments to issue more bonds,
continue pursuing proactive fiscal policy as well as prudent monetary policy
next year, Xinhua Hua News agency said Friday following the Central Economic
Work Conference in Beijing this week. 
     Here are the key takeaways:
     - In a rare admission, policymakers officially recognized the threat of the
trade war. China will "steadily and appropriately deal with China-U.S. economic
and trade friction," implement the Xi-Trump consensus reached in Argentina and
promote negotiations with the U.S.
     - Macroeconomic policies should strengthen countercyclical regulations.
Will insist structural deleveraging and deal with local government debt risk at
stable and appropriate pace.
     - Prudent monetary policy should be either too tight or too loosen, so as
to maintain a reasonable and sufficient liquidity. The line removed a previous
"neutral", and instead replaced with a clear and strong easing signal.
     - Will continue building healthy and long-term housing market. This shows
that the government won't rely on easing controls on the property market to
boost growth; the current restrictions on the property market will stay.
     - Increase the proportion of direct financing, direct liquidity into the
real economy, and ease the financing difficulties of private and small
enterprises. Once again policymakers are recognizing the danger of a weakening
private sector.
     - Will deepen reform of SOEs, fiscal and financial, land, market access and
social governance.
     - Will promote development of high-quality manufacturing, remove zombie
firms, increase domestic consumption by stimulating service sectors including
education, health care and culture, increasing investments in the
commercialization of 5G, artificial intelligence, Internet of Things as well as
infrastructure investment.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com
--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com
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