MNI China Press Digest, Aug 26: China-U.S., Mortgage, Growth

     BEIJING (MNI) - The following lists highlights from Chinese press reports

on Monday:

     Remarks by U.S. President Donald Trump ordering American companies to leave

China would not impact on the Chinese economy because Beijing has made full

preparations for an escalation in the trade war, according to an editorial in

the Global Times on Sunday. The editorial says the Chinese market is important

for multinational companies, and Chinese domestic demand was an advantage in

stabilizing the economy in the face of what it called American hysteria. If

bi-lateral relations continued to deteriorate, the Times says Washington will

pay a price in any reshaping of global production.

     The PBOC's move to base personal mortgage interest rates on the newly

released loan prime rate (LPR) is expected to push mortgage interest rates

higher, Securities Daily reports. Citing analysts, the Daily said higher rates

were also more likely to impact second home purchases and be applied in housing

market hotspots. The central bank has set the lower limit of mortgage loan rates

with the rate for a first home no lower than the LPR of a corresponding tenor,

and the rate for a second home no less than 60 bps above the LPR, the newspaper

said.

     China has adequate macro-policy tools to maintain its healthy economic

development and ensure the fundamental strength of the economy, according to the

country's Vice Premier Liu He. Speaking at an Expo in Chongqiong city, Liu said

the Chinese economy is shifting from a period of high-speed growth to one of

high-quality development. In his remarks, reported by Cailian Press, Liu said

China would continue to be driven by new, rather than old, economic drivers.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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