MNI POLICY: China To Push Bond Market Opening: Premier Li

By Iris Ouyang

     BEIJING (MNI) - China will further the opening up of its bond market to

overseas investors this year, with foreign banks, securities and insurance

companies having greater access, Premier Li Keqiang said Thursday.

     Here are the major points MNI highlights on Li's speech at the annual Boao

Forum for Asia:

     -China "will facilitate the opening of its Bond market, and issue related

policies to make it more convenient for foreign investors to invest in and trade

Chinese bonds," Li said.

     -China this year will further open up the service sector, especially

financial markets, even as the opening of the banking, security and insurance

sectors to foreign investors is accelerating, Li noted.

     -The government will make it easier for foreign companies to establish

investment firms in China. China will also improve rules on foreign companies'

strategic investment and M&A of Chinese companies.

     -Li stressed the importance and China's determination to protection legal

rights of foreign investors, including intellectual property protection.

     -Li stressed cooperation is important for global economic growth and peace,

noting China advocates fair and free trade. Disputes should be resolved through

negotiations, Li said. Talks on Regional Comprehensive Economic Partnership, an

important channel for Asia to promote free trade, should be more flexible, Li

said.

     -The government will again revise the 'negative list' on foreign

investment, which regulates specific areas foreign companies are prohibited from

doing businesses.

     -Tax reduction is China's major approach to buoy economic growth this

years, Li said, stressing China will not resort to its previous growth models by

pumping liquidity and large-scale of infrastructure investment stimulation.

     -China need to reduce the real level of interest rates for businesses, and

cut financing costs, Li said.

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

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

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