MNI China Press Digest Aug 29: Yuan, Sino-US, Power Rationing

The following lists highlights from Chinese press reports on Monday:

• Chna's regulators are likely to move to correct any deviation of the yuan, if there is a pro-cyclical herd effect or currency overshooting risks in the market, wrote Guan Tao, former forex official and now chief economist of BOC Securities in a blog post. Guan warns against one-way bets on the yuan, and the rebound of the recently weaker yuan could be imminent with this year’s trade surplus better than that in previous years, said Guan. Under the "five-layer protection" including a surplus in balance of payments, private secondary foreign exchange reserves, macro-prudential measures, capital control, and FX reserve intervention, China can keep the yuan basically stable at a balanced level, said Guan.
• The audit deal reached by Beijing and Washington has boosted market confidence and reflected China’s determination to deepen the opening of its capital market, the Securities Times reported. The deal could prevent Chinese companies being removed from American stock exchanges due to the lack of cross-border audit supervision cooperation, while companies must abide by domestic information security laws when asked to provide personal privacy and national security related information to accountancy firms. As of Aug 27, there were 286 Chinese companies listed in the U.S., with a total market value of USD1.18 trillion, and there are more than 30 domestic accounting firms registered with PCAOB which are qualified to provide audit services, the newspaper said.
• Power rationing in Southwest China has eased with falling temperature and rainfall in Sichuan province, CCTV News reported. Industrial and commercial power consumption had been fully restored by Sunday, except for the high-energy-load industries. Chengdu and Mianyang cities saw all the lights in the stores on and restrictions removed on air conditioner use, the newspaper said. The daily hydropower generation capacity is 460 million kWh, which is 9.5% higher than the lowest value in the previous period due to drought and will take some time to normalize, the newspaper added.