MNI China Daily Summary: Wednesday, October 23

     POLICY: China will increase punishment over intellectual property

infringement and improve protection of trade secrets for both domestic and

foreign firms, Ning Jizhe, a vice chairman of the National Development and

Reform Commission, said at a press briefing on Wednesday promoting investment

environment. China will "resolutely" prohibit forced technology transfer and

deal with every single case reported, Ning said.

     LIQUIDITY: The PBOC added liquidity for a third day, injecting CNY200

billion by 7-day reverse repos, according to Wind Information. The injection

sought to offset tax payments and keep the liquidity in the banking system

reasonable and ample, PBOC said.

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

institutions (DR007), traded between 2.5000% and 3.0000%, decreased to 2.7107%

from Tuesday's close of 2.8332%, Wind Information showed. The overnight repo

average, being traded between 2.1000% and 3.0000%, fell to 2.6392% from

Tuesday's 2.8044%,  

     YUAN: The yuan strengthened to 7.0745 against the dollar from Tuesday's

close of 7.0817, marking the 3rd strongest in the last month. This came despite

PBOC set the dollar-yuan central parity rate weaker at 7.0752 from 7.0668 on

Tuesday. It was the first time in four trading days that the central bank set

the parity, now at the second-lowest level this month.

     BONDS: The yield on 10-year China Government Bonds was last at 3.2075%, up

from the close of 3.2100% on Tuesday, according to Wind Information. 

     STOCKS: The Shanghai Composite Index edged down 0.43% to 2,941.62. Hong

Kong's Hang Seng Index decreased 0.82% to 26,566.73.

     FROM THE PRESS: China will focus on stabilizing investment responding to a

record-low GDP growth in Q3, the China Securities Journal reported citing Li

Qilin, the chief economist at Lian Xun Securities. Manufacturing investment will

stabilize while infrastructure investment will recover, the newspaper cited Li

as saying. Monetary policy will focus on ensuring the stable growth of total

social financing and credit, the newspaper said citing Chen Guo, the chief

analyst at Essence Securities. Cuts to market rates should only be marginal,

Chen was reported as saying.

     China will further increase investment in emerging industries including

high-end manufacturing, and boost service consumption in the areas such as

health care, tourism, and nursery, the Economic Information Daily reported

citing analysts. Several departments are planning to roll out new measures to

promote the high-quality development of the service industry, as well as the

digital economy, the newspaper added.

     Nearly a quarter of China's top 100 housing developers risks not being able

to make short-term debt repayment, the Economic Daily reported citing a report

by EH Consulting. About 24 out of 100 developers lack cash to cover the maturity

of their short-term debt, the daily said. Developers should attach greater

importance to cash flow control amid the tightening regulation on real estate

financing, the newspaper added.

--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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