Chinese News officials seek to downplay worries over local vehicle loans $CAF

·         China – PBOC issues a statement after Shanghai closes for Tues trading (hit @ 6amET) – says will maintain macroeconomic policy continuity; says growth likely to slow, stabilize; says risks of a double dip for the Chinese economy are low; says pressures for inflation to rise have eased (but says must remain cautious about upward price pressures and that inflation expectations remain high).  Says the Eurozone crisis unlikely to have a large impact on China GDP.  DJ

·         Chinese officials seek to downplay worries over local vehicle loans – the China Banking Regulatory Commission (CBRC) made comments aimed at allaying recent market worries over bank’s exposure to loans tied to local government financing vehicles.  The CBRC said in a statement that risks can be contained through measures to secure repayment.  Bloomberg 

·         China equities market – Citigroup says the Shanghai index is “near the bottom” and could rally as much as 14% from current levels – Bloomberg 

·         China tourism – China tourism stocks surged in Tues trading after the government announced plans to offer financial support to the industry.  China will extend financing support to tourism companies and projects by setting reasonable loan period and rates.  BusinessWeek/Bloomberg http://www.businessweek.com/news/2010-07-26/china-tourism-companies-advance-on-government-support-plans.html