MNI China Daily Summary: Tuesday, September 10

     DATA: China CPI rose 2.8% y/y in August, the highest in 18 months. PPI fell

0.8% y/y, the lowest level since August 2016.

     LIQUIDITY: The People's Bank of China (PBOC) injected CNY80 billion via

7-day reverse repos, with no reverse repos maturing today, according to Wind

Information. 

     RATES: The seven-day weighted average interbank repo rate for depository

institutions (DR007) fell to 2.6212% from Monday's close of 2.6538%, Wind

Information showed. The overnight repo average decreased to 2.5502% from

Monday's 2.6035%. 

     YUAN: The yuan strengthened to 7.1042 against the dollar from Monday's

close of 7.1286. The PBOC set the dollar-yuan central parity rate lower at

7.0846, compared with 7.0851 on Monday.

     BONDS: The yield on 10-year China Government Bonds was last at 3.0400%, up

from the close of 3.0225% on Monday, according to Wind Information. 

     STOCKS: The Shanghai Composite Index decreased 0.12% to 3,021.20. Hong

Kong's Hang Seng Index edged up 0.01% to 26,683.68. 

     FROM THE PRESS: China will continue to optimise and boost trade as the

economy evolves, President Xi Jinping said at the 10th meeting of the Central

Comprehensive Deepening Reform Committee on Monday, according to Xinhua News

Agency. China was aiming to create a better environment for the more efficient

allocation of resources in the market, Xi said according to Xinhua.

     Supportive policies such as tax cuts, subsidies and simplified procedures

are likely to be enacted in the short term and will stabilise China's foreign

trade, the Economic Information Daily reported Tuesday. Policies in the second

half will focus on structural upgrading, which requires innovation from

exporting enterprises, the newspaper said citing Liu Xingguo, a researcher at

the China Enterprise Association. Pressure to stabilise trade persists due to

the slowing global economy, Liu was reported saying.

     Listed Chinese companies paid 20% less in taxes and fees this year, the

Securities Times reported citing official data. These companies paid average

6.81% of revenue in taxes in fees, 20% lower than in 2018. The lower tax and fee

policies reduced companies' costs while boosting business and stock prices, the

newspaper said citing Pan Helin, a researcher with The Pangoal Institution.

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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