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MNI China Press Digest, Aug 22: LPR, Fiscal Policy, China-U.S.

     BEIJING (MNI) - The following lists highlights from Chinese press reports
on Thursday:
     The PBOC should improve the Loan Prime Rate (LPR) pricing mechanism by
strengthening the quality checking of LPR quotations by commercial banks,
according to the PBOC-run newspaper Financial News. Citing Zhang Ming, a senior
fellow at the Institute of World Economic and Politics under the Chinese Academy
of Social Sciences, the report said that in order to drive down lending rates,
the PBOC should also break the implicit lower limit of interest rates set by
     China has sufficient fiscal policy tools to stabilize its growth rate if
economic conditions decline more than expected, China Securities Journal said in
a front-page commentary. The government could consider using the remaining quota
of local government special bond issuance from previous years, if the economic
situation deteriorates, even though the current policy focus was on tax and fee
cuts, the newspaper said.
     Chinese state-owned enterprises (SOEs) are independent players which
participate equally in market competition, despite U.S. criticisms that they are
heavily subsidised, the People's Daily said in a commentary. The Daily said that
some U.S. criticism of SOE's was driven by envy and anger at the SOEs' global
expansion. The commentary said the U.S. should look to itself before making
criticisms, as U.S. governments at all levels had granted USD178.1 billion in
subsidies to domestic companies through 80,337 projects since the 1980s.
--MNI Beijing Bureau; +86 (10) 8532-5998; email:
--MNI Sydney Bureau; +61 405322399; email:
[TOPICS: M$A$$$,M$Q$$$,MI$$$$]

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