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China Press Digest: Friday, November 10

     BEIJING (MNI)  - The following are highlights from the China press for
Friday, November 10:
     The newly-launched Financial Stability and Development Committee under the
State Council will be a major force in deciding the priorities for new financial
regulation policies while the individual financial regulators who are
represented on the committee -- the People's Bank of China, the China Banking
Regulatory Commission, the China Securities Regulatory Commission, and the China
Insurance Regulatory Commission -- will implement the policies, the Financial
News, a newspaper managed by the PBOC, said Friday. Given the PBOC is also
conducting some of the same functions as the committee, their respective tasks
and functions need to be further clarified and boundaries set, the newspaper
said. It cited analysts predicting the first major task for the committee is to
strengthen regulation of financial holding companies, which offer services in
more than one regulatory area. Many of these companies arbitrage regulation to
reduce supervision and so create bigger financial risks in the process. PBOC
head Zhou Xiaochuan has stressed the need to clamp down on such companies, the
report noted. (Financial News)
     The yuan is expected to fluctuate in a small range in the period ahead even
though the dollar could strengthen, the China Securities Journal reported
Friday. The short-term outlook will depend largely on the trend of the dollar
and so the U.S. tax reform process will be a key factor affecting the yuan,
unidentified market experts were cited as saying. The two-way fluctuation of
both the dollar index and the yuan against the dollar will be more pronounced,
the experts told the newspaper said. Guotaijunan Securities said strong U.S.
economic fundamentals, such as the high October PMI and consumer confidence
index, the greater chance that U.S. tax reform will be approved, as well as the
possibility of a Fed interest rate hike in December could well cause the dollar
to strengthen, so the room for the yuan to appreciate is not large. But the
newspaper cited other analysts saying China's strong economic growth and a
positive outlook for its trade would help stabilize the yuan. (China Securities
Journal)
     China needs to work hard to achieve its goal of an "all-around opening up"
of the economy, Vice Premier Wang Yang wrote in an extensive article published
on the official People's Daily on Friday. How to switch from China's old growth
engines to a new growth model is the key to its economy development amid
recovery of the global economy, Wang said. China needs to better integrate the
opening up of its manufacturing and service sectors, he said. The manufacturing
sector needs to opened up further, except for some "sensitive fields," by
reducing restrictions on foreign ownership and the business scopes of companies
doing business in China, Wang noted. Wang stressed China needs to innovate its
outbound investment methods. Some Chinese companies' outbound investments are
unreasonable and create potential risks, so China will strengthen guidance on
investments and overseas mergers and acquisitions, he said. 
     China is not purposely pursuing a large trade surplus with the United
States, Chinese Premier Li Keqiang stressed in his meeting with U.S. President
Donald Trump on Thursday, the Xinhua News Agency reported Friday. China and the
U.S. need to further open up their markets to each other and create a fair and
competitive business environment. Li said China would welcome the U.S. expanding
its services trade and high-tech product exports to China. Trump said he hopes
the two countries can strengthen cooperation and facilitate a fair and balanced
economic and trade relationship. (Xinhua News Agency)
     Cooperation is the only correct choice for China and the U.S., and a
win-win approach could create a better future for the bilateral relationship,
the official Xinhua News Agency said in a late-night commentary Thursday. Room
for cooperation is large, with economic and trade cooperation the ballast of the
relationship, it said. On Wednesday, China and the U.S. signed mutual investment
agreements and contracts worth more than $250 billion, breaking the historical
record, reflecting the great potential for the two nations' cooperation, it
said. (Xinhua News Agency)
--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com
--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com
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