Morning Chinese News Wire $CNY

· China’s provinces are still targeting strong levels of growth, spurring calls for moderation from Beijing; while the national government is expected to target growth of 7% over the next 5 years (from ’11-15), the provinces of Anhui, Fujian, Chongqing, Guizhou, Heilongjiang, Guangxi and Yunnan would like to double local gross domestic product (GDP) in the next five years, which would translate into an annual growth of about 15 percent; the discrepancy reflects the tensions inside China as local leaders many times ignore edicts from Beijing – Reuters

· China may delay the introduction of a property tax (this news helped give a lift to Chinese property developers on Tues); China may delay the tax following disputes among government departments. “The property market usually enters a ‘winter’ period at beginning of the year, so there isn’t an immediate need for the tax with an expected slowdown in sales.” Bloomberg

· China property - China Vanke said on Tuesday that preliminary data showed its property sales for December rose 51 percent from a year earlier to 8.35 billion yuan ($1.3 billion). Reuters

· China - PBOC, CBRC, CSRC to Hold Work Meetings to sort out ’11 goals/objections; the nation’s target for M2 money supply growth may be set at 16% for ’11; the target for new lending in ’11 will be less than the 7.5T yuan target of ’10. China’s banking regulator could raise capital requirements for the country’s biggest banks while the insurance regulator could hike solvency requirements. Bloomberg

· China’s vice premier kicks off 3-day trip throughout Europe; he will start in Spain; on Mon morning, a senior Chinese official wrote an oped in a leading Spanish paper discussing how Beijing would continue to be a buyer of Madrid’s sovereign debt – CNBC

· China vs. Brazil – Brazil is expected to step up its pressure on China, urging Beijing to allow its yuan to rise in value. Brazil’s new trade minister said on Mon that president Rousseff will ratchet up pressure on Beijing over FX. Rousseff will travel to China in Apr. WSJ http://on.wsj.com/ezLMdd