MNI China Press Digest, Sep 16: Yuan, Liquidity, WTO Ruling

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

The yuan is likely to move both ways rather than on a clear path of appreciation, the Shanghai Securities News reported citing Guan Tao, chief economist of BOCI Securities. The market remains divided after the currency surged past 6.8 against the dollar, the newspaper said. Some analysts, including Chief Economist Gao Shanwen of Essence Securities, have argued that the yuan has entered a strengthening phase supported by increasing Chinese exports and the depreciation of the dollar, the News said.

The PBOC may not cut banks' required reserve ratios across the board after it injected CNY60 billion through MLF with the rate unchanged at 2.95% in September, providing liquidity to banks and giving structured deposit funds time to settle, the Economic Information Daily reported citing Wang Qing, an analyst from Golden Credit Rating. With CNY1.4 trillion MLF expiring by the end of the year, the PBOC is expected to continue meeting liabilities with MLFs rather than RRR cuts while maintaining LPR in September, Wang Yifeng, an analyst from Everbright Securities, told the Daily.

China has urged the U.S. to respect the decision of a WTO panel on Sept. 15 which sided with China's claim against its Section 301 actions raising tariffs on Chinese products, according to a statement by China's Ministry of Commerce on Tuesday. The U.S. should also respect multilateral trade systems and promote global growth with China and other WTO members, the ministry said.