MNI China Daily Summary: Wednesday, October 9

     TRADE: China has expressed strong dissatisfaction and resolute opposition

to the U.S. blacklisting of 28 Chinese entities over alleged abuses of ethnic

Uighurs in Xinjiang province, according to a statement by the Chinese Ministry

of Commerce late Tuesday. China strongly urged the U.S. to stop making

irresponsible remarks on the issue, and the relevant Chinese entities should be

removed from the blacklist as soon as possible, or it would take all necessary

steps to safeguard the country's own interests, the ministry said.

     TRADE: The U.S. is "continuing its old tricks" through exerting pressure by

blacklisting Chinese entities while also expressing optimism about upcoming

trade talks, Global Times said in an editorial late Tuesday. Referencing the

blacklisting of 28 Chinese entities over alleged human rights abuses in Xinjiang

province, the editorial said Washington's tricks would have little impact on

China's approach to the trade negotiations. China wishes to reach an agreement

but has no urgent timetable for doing so, the newspaper added.

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

(OMOs). This resulted in a net drain of CNY20 billion given the same amount of

reverse repos matured, according to Wind Information. The total liquidity in the

banking system is relatively high, the PBOC said.

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

institutions (DR007) decreased to 2.5681% from Tuesday's close of 2.6797%, Wind

Information showed. The overnight repo average fell to 2.1894% from Tuesday's

2.6301%.

     YUAN: Dollar-yuan weakened to 7.1327 compared with 7.1295 yesterday. The

PBOC set the dollar-yuan central parity rate weaker at 7.0728, compared with

7.0726 on Tuesday.

     BONDS: The yield on the benchmark 10-year China Government Bond was last at

3.1050%, up from 3.1025% on Tuesday, according to Wind Information.

     STOCKS: The Shanghai Composite Index rose 0.39% to 2,924.86. Hong Kong's

Hang Seng Index decreased 0.81% to 25,682.81.

     FROM THE PRESS: The PBOC has restarted the injection of funds through

pledged supplementary lending (PSL) after a five-month suspension, the China

Securities Journal reported citing unnamed analysts. The move sends a positive

signal that policymakers are increasing the countercyclical adjustment to the

financial system, the newspaper said. There was significant room for the PSL to

play a role in channelling long-term funds to key areas and "weak links" in the

economy, the newspaper said. The balance of PSL increased by net CNY24.6 billion

in September, according to the report.

     China's State Council has reviewed and passed the draft of Regulations on

Optimizing the Business Environment during the executive meeting on Tuesday,

according to a statement on the government website. China will continue to relax

market access, streamline the process of licensing and granting approvals, and

use inclusive and prudent supervision of emerging industries, the statement

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

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