MNI China Press Digest Aug 3: Forex, Yuan, Trade

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

Friday:

     China will continue to deepen forex management and reform and further open

up the market in the second half of the year, according to a statement from

State Administration of Foreign Exchange (SAFE). China will further elevate the

level of trade and investment liberalization and protect foreign enterprises'

legal rights, SAFE said. China will safeguard the safety, liquidity and

appreciation of forex and prevent the risk of cross-border capital flows, SAFE

added.

     The yuan will continue to fluctuate between 6.7 and 6.9 in the second half

of the year but is unlikely to break the 7.0 level, China Securities Journal

reported, citing experts, including Chen Xiao, an analyst at Ping An Securities.

Large capital outflows are unlikely to happen while the yuan's rapid

depreciation helps to release the negative pressure of China and the U.S.

economic divergence, Chen said, according to the newspaper. 7.0 is most likely

to be the bottom of this round of depreciation as breaking the 7.0 level might

lead to expectations of continuous depreciation and capital outflow, the

newspaper said, citing Ming Ming, chief analyst of Citic Securities.

     The Donald Trump administration didn't show respect and sincerity for

negotiation, so China should be prepared for a long-lasting trade war, the 21st

Century Business Herald reported, citing Tu Xinquan, China Institute for WTO

Studies. China is able to bear the impact from the 25% tariff levied on all the

Chinese exports, the newspaper said, citing a report by Tsinghua University. The

new list of Chinese goods targeted by the U.S. focuses on intermediate products,

which will increase the costs of goods for American consumers, Tu said,

according to the newspaper.

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

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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