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(M2) Trend Condition Remains Bearish


Firmer Overnight


Bears Remain In Control


Bull Steepening On Thursday

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MNI (London)
     BEIJING (MNI) - China will allow special local government bonds issued to
rise by 74.4%  to CNY3.75 trillion this year in a major policy drive to boost
infrastructure investment and revive an already stalling economy stunted by the
Covid-19 pandemic.
     In addition to special bonds, China will further allocate CNY600 billion to
infrastructure investment.
     The proceedings will finance infrastructure to beef up areas including
public health, energy reserves and waterworks, according to reports submitted to
the National People's Congress on Friday.
     Here are other key points from this year's policy papers:
- Will further cut VAT and fees for businesses amounting to about CNY500
billion. The tax and fee exemptions for private and small companies will all be
extended till year-end. Businesses are expected to save more than CNY2.5
trillion this year.
     - The central government will lead belt-tightening measures with more than
50% cuts to outlays on non-essential and non-obligatory items.
- Further guide down lending rates to significantly reduce companies' financing
     - Encourage banks to increase lending schemes including renewals without
principal repayment for small businesses. Large banks should increase inclusive
finance lending to small companies by more than 40%.
- Will launch a 3-year SOE reform, improve state capital regulation and further
mixed ownership reform. Keep SOEs focused on main business, market-based
operations and competitiveness.
     - Reform central-local tax revenue allocations to boost local government
--MNI Beijing Bureau; +86 (10) 8532-5998; email:
--MNI Beijing Bureau; +86 (10) 8532-5998; email:
--MNI Beijing Bureau; +86 (10) 8532 5998; email:
--MNI Beijing Bureau; +86 10 8532 5998; email:
--MNI London Bureau; tel: +44 203-586-2225; email:
[TOPICS: M$A$$$,M$Q$$$,MC$$$$,MGQ$$$]
MNI London Bureau | +44 203-865-3812 |

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