MNI China Daily Summary: Tuesday, March 12

     EXCLUSIVE: China will purchase semiconductors from the U.S. based on market

demand, Ning Jizhe, vice chairman of the National Development and Reform

Commission, told MNI in an interview today on the sideline of the National

People's Congress. Ning was asked whether China has promised to boost purchases

of U.S. computer chips as part of the negotiations to persuade President Donald

Trump to resolve the trade war.

     TRADE: China's Vice Premier and lead trade negotiator Liu He telephoned

U.S. Trade Representative Robert Lighthizer and the U.S. Secretary of the

Treasury Steven Mnuchin today discussing "crucial issues on the text" and made

arrangements for the next step, Xinhua News Agency reported.

     TRADE: China will increase imports of oil and gas from the U.S., amid an

increasing number of trade facilitating measures, said Hou Qijun, deputy general

manager of China National Petroleum Corporation. Hou said he is optimistic about

the prospect of Sino-U.S. cooperation in the energy sector. 

     LIQUIDITY: The People's Bank of China (PBOC) skipped open market operations

for the ninth trading day, leaving liquidity unchanged as no reverse repos

mature, according to Wind Information. The total liquidity in the banking system

is at a reasonable and ample level, the PBOC said.

     RATE: The 7-day weighted average interbank repo rate for depository

institutions (DR007) increased to 2.5800% from Monday's close of 2.3182%,

according to Wind Information. The overnight repo average fell to 2.0000% from

2.0957% on Monday.

     YUAN: The yuan appreciated to 6.7114 against the U.S. dollar from Monday's

close of 6.7251. The PBOC set the dollar-yuan central parity rate stronger at

6.7128 today, compared with 6.7202 set on Monday.

     STOCKS: The benchmark Shanghai Composite Index rose 1.10% to 3,060.31. Hong

Kong's Hang Seng Index increased 1.46% to 28,920.87.

     BONDS: The yield on the 10-year China Government Bond was last at 3.14%,

down 1bp from Monday's close, according to brokers.

     FROM THE PRESS: The sales and prices of both new and used residential

housings nationwide are unlikely to increase amid targeted controls by local

governments, even as some cities saw small-scale recoveries, said the Economic

Information Daily today citing analysts. The housing market is likely to be

stable without sharp gains or drops after declining in the first two months, the

newspaper reported.

     Banks in several cities including Shenzhen and Hangzhou continue to lower

mortgage rates, some to 5% above the benchmark lending rate, drive by the

abundant liquidity in the market, said 21st Century Business Herald. Mortgage

loans will grow faster this year to support first-time buyers, the newspaper

said citing market participants.

--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$$$]