MNI China Press Digest Aug 8: Trade, Bonds, Property

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

Wednesday:

     Some countries make China the scapegoat for trade deficit instead of

promoting fiscal consolidation, initiating structural reform and elevating

overall level of savings, state-controlled Economic Information Daily said in a

commentary. Global trade balance can only be achieved by each country's economic

development, structural enhancement and trade liberalization rather than

protectionist measures, the daily said. China does not pursue trade surplus but

increases imports to promote balance of payments on current account. Countries

that initiated trade frictions would not be able to enjoy the benefits of

China's further opening up, the newspaper said.

     While market interest rates decline this year, financing costs for the real

economy are still relatively high, as credit accumulates in government bonds

market and monetary market, Shanghai Securities News reported, citing Wen Bin,

chief analyst of China Minsheng Bank. Funds released from the CNY200 billion

required reserve ratio cut by the central bank last month may not flow to small-

and micro-sized enterprises as their high credit risks are not likely to satisfy

banks' regulatory index, the newspaper said, citing an unidentified manager in a

state-owned bank. Financial institutions are still inclined to buy higher-rated

bonds, the newspaper said, citing a person in a securities firm.

     China's local governments should persist with real estate regulation and

tailor policy measures to each city to stabilize land and housing prices and

expectations, China Securities Journal reported, citing an unidentified official

at the Ministry of Housing and Urban-Rural Development. Local governments should

adjust the structure of land and housing supply and demand as well as implement

differentiated credit and tax policies for home buyers, the official said,

according to the newspaper. Local governments should support reasonable housing

consumption, while curbing speculative purchases to direct and manage property

price expectations, the official 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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