MNI China Press Digest, Sep 14: Yuan, August Data, Incomes

MNI (Beijing) - The following lists highlights from Chinese press reports on Monday:

The Yuan exchange rate will likely maintain a steady two-way movement under the influence of multiple factors, reported the Securities Daily citing Xu Gao, the head economist from BOC International. As the dollar index reaches a "phasic bottom", China's fast economic recovery and tighter monetary policies provide a boost for the strengthening of the yuan, Xu said. A stronger yuan, however, pressures exports in turn, and the strength of other currencies such as the euro will also help limit the yuan's gains, Xu told the Daily.

China's domestic consumption should return to growth as sales of automobiles rise sharply, infrastructure projects accelerate and industrial production increases, reported the Economic Information Daily on Monday. Retail sales for August are estimated to have risen by 1.0% y/y due to surging sales of automobiles and increasing online purchases, the Daily said citing analysts. Infrastructure investment for the first eight months may also reverse falls to grow 0.8% y/y, driven by funding from local government special bond sales and a resumption in construction activities after stoppages due to summer heat and flooding, the Daily said citing researcher Li Tao of China Securities. August industrial output may have gained 6.5% y/y, compared to July's 4.8%, analysts told the newspaper. The statistics authority is set to publish the August data on Tuesday.

China should roll out more measures to arrest falling incomes and ensure low consumption doesn't drag down the recovery, the Securities Times reported citing analysts. One-off consumption subsidies to low and middle-income groups in the form of cash or vouchers nationwide is necessary, the Daily said citing Guan Li, director of the Survey and Research Center for China Household Finance, whose research in May predicted a 17.3% reduction in spending this year. More measures to fund private and small companies to retain employment, improve social security and encourage online spending are also needed, the newspaper said.