MNI POLICY: China to Facilitate Private Sector Bond Sales:NDRC

     BEIJING (MNI) - China will further facilitate both bond issuance and bank

lending to private companies, a spokesperson for the National Development and

Reform Commission told a press briefing in Beijing Tuesday. 

     MNI highlights the major points:

     --The NDRC will enhance support for bond issuance by private companies,

while the government will expand the bond issuance scale for high-quality

companies, particularly in strategic sectors which the central government

supports, Meng Wei, spokeswoman of the NDRC said. The central government will

encourage banks to offer longer-term loans, such as three-year loans to advanced

manufacturers and private companies with a relatively strong outlook, Meng

stressed.

     -The NDRC stressed China will make efforts to build a strong domestic

market amid uncertainties both at home and abroad. The country will focus on its

domestic affairs and development, facilitate supply-side reform, and continue to

rein in financial risks, whilst reducing poverty and pollution.

     -China will speed up fixed-asset investment, Meng said. China built 6.27

million shanty-town houses last year, 7.4% more than the goal set by the

government, the country has started 133 of the designated 172 water management

and conservancy projects, as well as 6 new airports.

     -The NDRC refuted arguments that China's GDP growth in 2018 is lower than

stated by the statistics bureau on Monday. Citing the highest level of national

electricity use since 2012, double-digit growth of natural gas use, and

acceleration of fixed-asset investment and increased urban employment, Meng

stressed China's economy has shown substantial resilience. "China's fundamentals

of healthy economic development haven't changed ... its overall tendency to

maintain long-term stability and wellbeing hasn't changed ... we completely have

the conditions, potential and capability to maintain economic growth in a

reasonable range."

     -China will further open its economy and markets, by easing market

restrictions in the agriculture, mining, healthcare, culture and education

industries. China will also allow foreign companies to own and self-manage

companies across more fields. The country aims to support large foreign

investment projects and facilitate its implementation, improve a law-based

environment, align standards for domestic and foreign companies, level playing

field for foreign companies, the NDRC said.

     -Employment overall is relatively stable, though there are some changes,

Meng stressed, in response to a question about higher unemployment in tech

companies. The central government will continue to stabilize economic growth

through appropriate macro-controls to ensure stable employment, encourage

entrepreneurship, encourage professional training, Meng stressed.

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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