MNI China Daily Summary: Thursday, September 9

DATA: China's producer price index measuring factory gate prices rose 9.5% y/y in August, accelerating from July's 9.0% gain, hitting the highest level since August 2008 and outshining a forecast of 9.0%, according to the National Bureau of Statistics on Thursday. While consumer price index eased to 0.8% y/y from 1.0% in July, registering a four-month low, less than the forecast 1.0%.

LIQUIDITY: The People's Bank of China (PBOC) injected CNY10 billion via 7-day reverse repos with the rate unchanged at 2.2%. The operation left liquidity unchanged given it netted off CNY10 billion reverse repos maturing today, according to Wind Information. The operation aims to keep liquidity reasonable and ample, the PBOC said on its website.

RATES: The seven-day weighted average interbank repo rate for depository institutions (DR007) decreased to 2.1553% from 2.2008% on Wednesday, Wind Information showed. The overnight repo average fell to 2.0322% from the previous 2.1612%.

YUAN: The currency strengthened to 6.4572 against the dollar from 6.4622 on Wednesday. The PBOC set the dollar-yuan central parity rate slightly lower at 6.4615, compared with the 6.4674 set on Wednesday.

BONDS: The yield on 10-year China Government Bond was last at 2.8700%, up from Wednesday's close of 2.8685%, according to Wind Information.

STOCKS: The Shanghai Composite Index edged up 0.49% to 3,693.13, while the CSI300 index decreased 0.04% to 4,970.01. Hang Seng Index fell 2.30% to 25,716.00.

FROM THE PRESS: The Chinese government summoned gaming firms including Tencent Holdings and NetEase to ensure they implement the new time limit for providing online games to teenagers, Xinhua News Agency reported. Companies are required to resist unfair competition, prevent excessive concentration or even monopoly, and focus on promoting technological innovation, Xinhua said. Beijing last month set limits for those under 18 from playing video games for no more than three hours a week.

China will set up so-called innovative pilot zones in six cities, including Beijing and Shanghai, that will create a global-standard business-friendly environment through eliminating protectionism and red tapes, freer market entries and exit and greater opening to outside markets, the State Council said following an executive meeting on Wednesday. China hopes to stabilize market expectations and ensure smooth economic operations through the reform measures, the council said.

China is extending aid to Afghanistan as the new interim government needed external help for stability, the Global Times said after Foreign Minister Wang Yi pledged $31 million worth of food and medical supplies in a meeting with other neighbouring countries on Wednesday. China hopes that its aid can help restore social order and lay a foundation for future friendly interactions, the newspaper said citing Li Haidong, professor at the Institute of International Relations at the China Foreign Affairs University. Wang called for Afghanistan to keep its ports open and maintain security, while China will work on restoring cargo railway services between the two countries, the newspaper said.