VIEW: ING write "apart from implementing......>

CHINA: VIEW: ING write "apart from implementing the special re-lending program

of CNY300bn announced earlier, the PBoC is going to encourage fin'l institutions

to support measures to help smaller firms affected by Covid-19. This will

include extending loan repayment dates, provide special credit facilities to

affected industries' private enterprises & smaller firms, as well as reduce the

interest burden on these cos if necessary. The objective is to prevent a domino

effect of a broken liquidity chain... There is increasingly more of a burden on

banks. Extending repayments & providing extra credits means that there will be

extra capital pressure. Liquidity is not an issue yet as we expect PBoC can

manage liquidity through OMOs or targeted RRR cuts. We expect the PBoC will cut

the RRR from 12.5% to 12.0% for targeted use of the liquidity. We believe that

only some banks can enjoy these targeted cuts or only loans that match a set of

requirements to provide critical funding to cos that are eligible for these

targeted RRR cuts. We estimate that these measures could release ~CNY400bn of

liquidity. A broad-based RRR cut could release liquidity of around CNY1.0tn."