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     EXCLUSIVE: China has no more concessions to offer the U.S. to secure a
potential interim "phase one" deal to wind down the two countries' 16-month
tit-for-tat trade war, government advisors told MNI. "I think China has offered
what it can offer in the latest 13th round of negotiations," said Lv Xiang, a
researcher from the Chinese Academy of Social Science which is overseen by the
State Council. "China is waiting for Trump to make his decision," he said,
adding that previous Chinese offers of promises to buy U.S. agricultural
products would be conditional on measures taken by the U.S.
     TRADE: China is willing to work together with the U.S. to reach a phase-one
agreement, said Gao Feng, spokesman of the Ministry of Commerce at a briefing
today. Vice Premier Liu He held a constructive discussion with U.S. Trade
Representative Robert Lighthizer and Secretary of Treasury Steven Mnuchin on Nov
16, and the two sides will continue to maintain close communication, Gao said
without disclosing details.
     POLICY: China still has the capacity, including fiscal resources, to
maintain its economic growth goal above 6% next year, Wang Xiaoguang, deputy
director of economic research at the Party School of Central Committee of
Chinese Communist Party (CCP), said today at a briefing by senior scholars from
the school on the CCP's Fourth Plenum, which took place last month.
     LIQUIDITY: The People's Bank of China (PBOC) skipped open market operations
for the second consecutive day, leaving liquidity unchanged, according to Wind
Information. The level of liquidity in the banking system is reasonable and
ample, the PBOC said. 
     RATES: The seven-day weighted average interbank repo rate for depository
institutions (DR007) decreased to 2.3279% from Wednesday's close of 2.3847%,
Wind Information showed. The overnight repo average fell to 1.8440% from
Wednesday's 1.8905%. 
     YUAN: The yuan weakened to 7.0374 against the dollar from Wednesday's close
of 7.0369. PBOC set the dollar-yuan central parity rate lower for a fourth day
at 7.0217, compared with Wednesday's 7.0118.
     BONDS: The yield on 10-year China Government Bond was last at 3.1675%, down
from the close of 3.1700% on Wednesday, according to Wind Information.
     STOCKS: The benchmark Shanghai Composite Index edged down 0.25% to
2,903.64, as financial and consumer stocks fell. Hong Kong's Hang Seng Index
tumbled 1.57% to 26,466.88.
     FROM THE PRESS: The PBOC should maintain a prudential bias of its monetary
policy and increase counter-cyclical adjustments instead of monetary easing to
counter economic downward pressure, as any easing signals would push up housing
prices and inflation, according to an editorial in the 21st Century Business
Herald. The current international monetary environment doesn't support any
loosening because the adoption of negative interest rates in some countries
indicates increased global risk, the newspaper said.
     China may increase the issuance of special purpose government bonds to CNY3
trillion in 2020, the China Securities Journal reported citing Ming Ming, Deputy
Head of the Research Department at Citic Securities. The central government will
tolerate an increase in the deficit in 2020 and use innovative policies to
alleviate the debt burden of local governments, the newspaper said citing Zhu
Jianfang, the Chief Economist with Citic Securities. 
     The China Banking and Insurance Regulatory Commission will guide banks to
increase lending to small companies and stabilize lending interest rates, the
China Securities Journal reported citing the Commission. The regulator will also
promote the reform of the commercial banking lending model, including measure
such as reducing the reliance on collateral, increasing the proportion of credit
loans, and improving the loan renewal business, the newspaper said.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com
--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com
[TOPICS: M$A$$$,M$Q$$$,MBQ$$$]