MNI China Press Digest, Sep 4: Bank Liquidity, Steel, China-EU

The following lists highlights from Chinese press reports on Friday:

Chinese banks may be facing a new norm of tight liquidity as the PBOC stops monetary easing given the economic recovery is on track, the Shanghai Securities News reported citing Liao Zhiming, the chief banking analyst with TF securities. The 3-month interbank deposit certificate increased to 2.7% in August, the highest this year, indicating tight liquidity, the newspaper reported citing a source at a commercial bank. Commercial banks in China sold about CNY1.1 trillion in interbank deposit certificates in July and August, more than in all of Q2 , the News reported with data from Wind Information.

China's steel demand is forecast to rise from September as cooler weather and repairs following summer flooding boost construction activities, while improved global demand may lift exports, Xinhua News Agency reported citing the China Iron and Steel Association. Output of iron, crude steel and steel materials in the first seven months rose 3.2%, 2.8% and 3.7% respectively, driven by the manufacturing recovery, Xinhua said. Steel producers reported positive y/y profit growth in June and July, the agency reported.

China and the EU should cooperate on issues such as climate change, the reform of international organizations, economy and nuclear disarmament, according to a commentary on government portal China.com.cn. Zhang Bei, a researcher with the China Institute of International Studies, wrote that China's understanding and expectations of China-EU relations have always been for mutual cooperation and not zero-sum games, as demonstrated by State Councilor Wang Yi's visit to Europe this week.