MNI China Press Digest, Sep 18: Yuan, Q4 Growth, Reform

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

The yuan's recent surge may attract capital inflows and encourage speculative trading which can hurt industry development and economic growth in the long term, the 21st Century Business Herald commented. The healthy growth of the manufacturing industry depends on stable exchange rates and costs, while excess liquidity and capital inflow create inflation risks and fan asset prices, wrote the newspaper. Policymakers should beware of a stronger yuan's impact on the competitiveness of Chinese goods given that businesses already face rising raw material costs, the newspaper said.

China's economic growth is likely to strengthen further in Q4 due to fast-recovering supply chains, growing consumption and investment, as business profits and government revenues further improve, the China Securities Journal reported on Friday citing Liu Yuanchun, the vice president of the Renmin University of China. Q4 investments in infrastructure projects, real estate, and exports are set to grow from a year ago, the paper reported citing Teng Tai, the head of the WANB Research Institute. China should continue to create job opportunities, improve wage incomes, and draw in high-quality services and products to improve domestic consumption, the newspaper said citing Yu Chunhai, the dean of RUC's School of Economics.

China will support the reform of both state and private enterprises to further boost the domestic economy, the People's Daily reported citing a weekly meeting chaired by Premier Li Keqiang. China will improve the core competence, management systems and innovation of SOEs to further their role in supporting the domestic economy, said Li. China will also provide a fair and open environment for private businesses to help create jobs and widen their access to previously restricted sectors including the power grid and railways, Li said.