MNI POLICY: China to Further Lower Lending Rates to Aid Growth

     BEIJING (MNI) - China will accelerate measures for reducing real lending

rates, including across-the-board and selected cuts of banks' required reserve

ratios, to counter the growing challenges to the economy, Ning Jizhe, a vice

chairman of the National Development and Reform Commission, said at the China

Development Forum on Friday.

     Here are other main measures mentioned in Ning's speech: 

     - China will enhance countercyclical moves to keep growth at a proper

range. It will use more proactive fiscal policy and make tax-and-fee cuts more

effective.

     - The central government urges for quickened issuance of local government

bonds including allowing some of next year's quotas to be used this year. It

also calls for boosting consumption and effective investment and build a

stronger domestic market. 

     - China will quicken reform and optimize business environment, including

treating domestic and foreign companies equally and promoting financial

supply-side reform. It will implement measures including widened access and a

new law that protects foreign businesses.

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

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