China Press Digest: Monday, September 18

     BEIJING (MNI) - The following are highlights from the Chinese press for

Monday, Sept. 18:

     Regulators are cracking down on "virtual currencies," including Bitcoin,

because of related risks and their potential to jeopardize the real economy, the

Xinhua News Agency reported Sunday. As of Friday all three large bitcoin

exchanges in China -- Bitcoin China, OKcoin and Huobi -- said they would shut

before Sept. 30, the report said. As bitcoin prices rise the risk of speculation

and unrestricted capital flows have distorted the initial intentions of economic

innovation, the report said. Restrictions indicate a determination by

authorities to prevent financial risks, the report said. (Xinhua News Agency)

     GDP growth in 2017 will reach 6.8% -- above the 6.5% target set earlier

this year. But but the fourth quarter will see a slowing, the Economic

Information Daily reported Monday. Economic performance in August was below

estimates as industrial output, fixed-asset investment and exports all rose at a

slower pace. However, positive momentum hasn't changed, the report said. Three

main factors will continue to boost the economy -- increasing investment in

property, recovering manufacturing and robust consumption. As the property

market cools and infrastructure investment decelerates growth in the fourth

quarter will be lower, the report said. (Economic Information Daily)

     It is difficult to see a reserve-requirement-ratio cut implemented because

current monetary policy is showing an obvious tight bias, the Securities Times

said in a commentary Monday. M2 growth will remain low at 9% to 10% because of

strict financial regulations targeting leveraging and financial bubbles will

further curb expansion in the sector, the commentary said. A RRR cut is a strong

signal of a loose monetary policy. Therefore it is unlikely to be adopted now --

considering financial regulation targets haven't changed, the economy continues

to be stable and the important developed countries have all tightened policy,

the report said. (Securities Times)

     United Nations actions against North Korea must be implemented

comprehensively and completely but sanctions aren't the only solution, according

to Department for International and Strategic Studies at the China Institute of

International Studies run by the Ministry of Foreign Affairs vice-director Su

Xiaohui in the People's Daily on Monday. Nuclear tensions on the Korean

Peninsula are a reflection of conflicts between North Korea and the U.S., Su

said. The U.S's obsession with imposing sanctions on North Korea and even

military threats have hindered peaceful dialogue and other joint efforts. China

won't support North Korea's development of nuclear weapons but also says the

U.S., Japan and South Korea shouldn't destabilize the situation, Su said. China

suggests the U.S. not link Sino-U.S. trade with North Korea issues, Su said.

(People's Daily)

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

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