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     BEIJING (MNI) - The following are highlights from the China press for
Wednesday, November 8:
     China will seek to strengthen relations with the U.S. so that they evolve
into mutual respect and win-win cooperation, the official People's Daily said
Wednesday, ahead of U.S. President Donald Trump's arrival in Beijing today. The
two nations should consider each other's interests and concerns, and
appropriately resolve conflicts, the commentary said. It reiterated China will
stick to its goal of denuclearization of the Korean peninsula and tackling
disputes with North Korea through dialogue. It also stressed China would deepen
supply-side structural reform, further its opening up, reduce significantly its
restrictions on market access, as well as implement high-level policies to
facilitate trade and make foreign investment more convenient. (People's Daily)
     China's replacement of the business tax with a value-added tax has reduced
the business tax burden by more than CNY1 trillion, the official People's Daily
said in a front-page report Wednesday. From May last year to September this
year, corporate taxes were cut CNY1.0639 trillion, of which CNY488.9 billion was
cut from May to December last year and CNY575 billion cut in the first nine
months this year. (People's Daily)
     China will implement a series of policies to develop the real economy by
redirecting capital to help growth, Economic Information Daily reported
Wednesday. Chinese President Xi Jinping stressed in his keynote speech at the
19th Communist Party Congress last month that China needs to transform its
method of development to build a modern economic system. The newspaper cited
various analysts saying China needs to enhance the efficiency and quality of
development and, in particular, speed up development of the manufacturing sector
by enhancing its ability to innovate. Imbalances in the real economy shows that
reform of the Chinese corporate system has not caught up with the need to
upgrade and restructure the economy, Chi Fulin, director of China Institute for
Reform and Development and deputy head of China Society of Economic Reform, was
quoted as saying. He also pointed out the imbalances that exist between the
property sector and the real economy that need to be addressed. (Economic
Information Daily)
     Local asset management companies (AMCs) have developed rapidly because of
increased demand and government policy support, but now governments are looking
to enact regulations to control their activities, Economic Information Daily, a
newspaper under the official Xinhua News Agency, reported Wednesday. Various
cities and provinces are preparing to issue new regulations on the sector, with
Jiangxi and Shandong provinces recently announcing interim regulations. To date,
some 50 new provincial and municipal AMCs have been established, the newspaper
said. The regulations aim to control risks and direct AMCs to focus on their
main businesses instead of other financing operations. The newspaper also argued
that standardized national regulations should be created. (Economic Information
Daily)
     Consumer finance asset-backed securities have developed rapidly under the
strict supervision of financial regulators, China Securities Journal reported
Wednesday. At the end of September, CNY190 billion in consumer finance ABS had
been issued. Chinese exchanges require issuers to have healthy balance sheets
and good risk controls to keep risky companies from entering the market, the
newspaper said. The Chinese consumer finance ABS issuers are mainly leading
companies in consumer lending such as Alibaba's Ant Financial and JD Finance of
http://JD.com. Chinese authorities have issued strict rules to stop illegal
assets from being used in ABS instruments to ensure order in the sector. (China
Securities Journal)
--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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