China Press Digest: Wednesday, November 8

     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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