MNI China Press Digest, Aug 2: Deleveraging, Trade, Mon Pol

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

Thursday:

     China will persist in its deleveraging campaign while maintaining liquidity

at a proper and sufficient level, Xinhua News Agency said in a commentary. China

must curb risks accumulating in local debts when implementing more proactive

fiscal policies, Xinhua said. Fiscal policy, specifically that aimed at

expanding domestic demand in the short term and supply-side structural

adjustment in the long term, should be coordinated with monetary policy, which

uses quantitative measures to control liquidity, Xinhua said, citing Wangjun,

chief economist of Zhongyuan Bank.

     There are increasing uncertainties in the external environment, including

foreign trade and foreign investment, 21st Century Business Herald reported,

citing Bai Ming, vice director of the international market research institute

under the Ministry of Commerce (MOFCOM). The internal and external risks China

faces are closely related, which makes macro policy adjustments less

independent, Bai added. China's exports should shift from lower costs, to newer

technology, higher quality and better branding to be more competitive in the

global market, Bai noted. China should improve the business environment and

protect foreign enterprises' legal rights to stabilize foreign investment, as

foreign enterprises contributed almost half of China's exports in 2017, the

newspaper said, citing Gao Feng, spokesperson of the MOFCOM.

     China will implement a steady monetary policy, while fine-tuning policy and

maintaining liquidity at a proper and sufficient level in the second half of the

year, Shanghai Securities News reported, citing a statement from the PBOC. The

PBOC will enhance communication with the market on policy implementation, and

will improve the perceptiveness, flexibility and effectiveness of monetary

policy, the newspaper said. The PBOC has tweaked its policy wording from

"tightly controlling" to "closely monitoring" money supply in the statement,

signaling that money supply will not be too tight, but a major flood of credit

in the next stage will also be avoided, the newspaper said, citing Zeng Gang,

vice director of National Institution for Finance and Development.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: sherry.qin@marketnews.com

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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