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MNI (London)
     POLICY: China has asked Canada to investigate three Canadian rapeseed
exporters over 'incidents', two of which have  now been denied export
certificates, and to prevent such cases from occurring again, the Ministry of
Commerce said. There was no update offered by MOFCOM on the status of the trade
talks between the U.S. and China. China's decision to again delay any tariff
increase on U.S. vehicles is aimed at creating a favourable atmosphere for the
current round of trade talks between the world's two largest economies, MOFCOM
said. China will defend their basic rights as a developing country, Gao
stressed, when asked whether China will give up on its special treatment granted
by the WTO.
     LIQUIDITY: The People's Bank of China (PBOC) skipped open market operations
for the 12th trading day on Thursday, leaving liquidity unchanged as no reverse
repos matured, according to Wind Information. Total liquidity in the banking
system is at a relatively high level, according to the PBOC. The CFETS-NEX
money-market sentiment index closed at 42 on Wednesday vs 35 on Tuesday.
     RATES: The 7-day weighted average interbank repo rate for depository
institutions (DR007) rose to 2.2692% from Wednesday's close of 2.1917%, Wind
Information showed. The overnight repo average decreased to 1.4196% from
Wednesday's 1.6517%. 
     YUAN: The yuan depreciated against the dollar to 6.7185 from Wednesday's
close of 6.7076. The People's Bank of China (PBOC) set the dollar-yuan central
parity rate at 6.7055 on Thursday, compared with 6.7194 on Wednesday.
     BONDS: The yield on 10-year China Government Bond was last at 3.265%, down
3 bps from the close Wednesday, according to brokers.
     STOCKS: The benchmark Shanghai Composite Index rose 0.94% to 3246.57, Wind
Information said. Hong Kong's Hang Seng Index dropped 0.17% to 29,936.32.
     FROM THE PRESS: China will continue to advance the opening of the bond
market and also encourage engagement with international ratings agencies,
according to an unidentified PBOC official quoted by the Shanghai Securities
News. The newspaper quoted the official as saying that China's ratings system
lags behind international standards and needed to be enhanced if it was to win
international recognition. The official said China should study when to allow
foreign financial institutions to fully participate in repurchases of bonds, and
advance the use of yuan-denominated derivatives. The debut of China's bond
market on the Bloomberg Barclays Global Aggregate Index on Monday is expected to
force further reform, and the lack of trading mobility of bonds needed to be
resolved, the newspaper said.
     China has confirmed it will cut CNY300 billion in administrative fees
collected by the Government, China Securities Journal reported Thursday. The
newspaper also reported the Government had approved drafts of regulations under
the new foreign investment law. Starting from July 1, registration fees for
immovable property IP will be removed, while fees for trademark registration,
passport and visa pictures and wifi services for cars will also be reduced, said
officials led by Premier Li Keqiang at China's State Council regular meeting.
Taxes on certain goods taken by individuals into China, including food,
medicine, textiles, and electronics will also be cut from April 9, according to
the Journal. Laws covering Administration Permission, Trade Marks, Construction
and Electronic Signatures have also been approved and will be submitted for
approval by the National People's Congress, the Securities Journal said.
     China should be cautious about increasing speculation in the property
sector and needed to act to curb such behaviour, the Economic Information Daily
said in a front-page commentary on Thursday. After two years' of tight property
policies, housing prices have fallen and market demand is building, the
newspaper said. The commentary also said that lower mortgage rates were having a
positive impact on demand in some cities. However, it warned against local
governments stimulating the property sector for short term growth.
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