While market interest rate declines.....>

CHINA PRESS: While market interest rate declines this year, financing rates for

the real economy are still relatively high, as credit accumulates in government

bonds market and monetary market, Shanghai Securities News reported, citing Wen

Bin, chief analyst of China Minsheng Bank. 

- Funds released from the CNY200 billion required reserve ratio cut by the

central bank last month may not flow to small- and micro-sized enterprises as

their high credit risks are not likely to satisfy banks' regulatory index, the

newspaper said, citing an unidentified manager in a state-owned bank;

- Financial institutions are still inclined to buy higher-rated bonds, the

newspaper said, citing a person in a securities firm.