MNI China Press Digest, April 19: Yuan, Infrastructure, Trade

     BEIJING (MNI) - The following lists highlights from Chinese press reports

on Friday:

     The yuan is expected to be strong supported by the prospect of China

reaching a trade agreement with the U.S. and the volatility of the dollar index

due to risky events such as the Brexit, the Securities Daily reported citing

Wang Qing, the chief analyst at credit rating agency Dongfang Jincheng. That the

PBOC has refrained from cutting required reserve ratios and boosting liquidity

may be out of the intention to keep the yuan exchange rate stable, the newspaper

reported citing Cao Xiao, the director of quantitative finance center at

Shanghai University of Finance and Economics. The yuan has been supported by a

larger trade deficit incurred by the U.S. and China's better-than-expected Q1

indicators, Cao was cited as saying.

     A rebound in China's infrastructure investment may not be sustained through

the second half after further rebound in Q2 given limited space for further

fiscal stimulus, said Securities Daily citing Zhong Zhengsheng, chief economist

at CEBM, a research firm owned by Caixin. Real estate investment growth is

likely to be maintained given low inventory and robust home sales, the Daily

said citing Zhong.

     Chinese foreign trade is expected to withstand the global downward

pressure, based on the stable 3.7% y/y growth in combined imports and exports in

the first quarter, said Economic Information Daily today. The government should

continue to diversify trade partners, support cross-border e-commerce, and

engage private enterprises to counter the global trade slowdown, the Daily 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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