A Xinhua story that noted important......>

CHINA YUAN: A Xinhua story that noted important progress had been made in

US-China trade talks has had a mixed reaction in the markets, with USDCNH moving

slightly higher while equities have edged higher. USDCNH trades at 6.7165 with

the focus remaining on the 6.7000 level. 

- China's holdings of U.S. Treasuries fell to the lowest level in a year and a

half dropping to $1.12 trillion in November, from $1.14 trillion in October,

according to data from the Treasury Department released Thursday.

- Barclays economist noted today that the PBOC may cut its benchmark interest

rate imminently due to the combination of PMI coming in below 50, exports in

contraction, and slowing PPI, which have previously triggered cuts. 

- Caixin PMI is due out in 15 mins with any reading above or in line with last

month's 49.7 likely to provide a boost to Chinese assets given how bearish

expectations have become.