MNI China Press Digest August 13: PBOC, Property, Trade

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

Monday:

     To counter the procyclical fluctuations in the forex market, China may take

counter-cyclical measures to keep the yuan exchange rate within appropriate

levels, Shanghai Securities News reported, citing a report by the PBOC. China,

persisting in its liberalization of the yuan, will not use competitive

depreciation as a tool to offset the impact of external trade disputes, the

newspaper said. China will maintain a neutral and prudent monetary policy and

firmly prohibit strong stimulus measures in the next stage, the newspaper added.

The PBOC will use multiple monetary policy tools efficiently to achieve a

balance between stable growth, structural reform and risk prevention, the

central bank said, according to the newspaper.

     China must contain the rise of housing prices with tight regulatory

measures, Economic Information Daily said in a commentary, after two major

state-owned banks denied lowering the mortgage rate for first-time home buyers

in Shanghai last Friday. Continuous rises in housing prices and an expansion in

real estate industry will only increase bubbles and restrict China's potential

for development, the newspaper said. Local governments must reduce their high

reliance on real estate to simulate the local economy, the newspaper said. China

should soon establish a long-term mechanism to curb people's expectations for

soaring housing prices, the newspaper added.

     The U.S. is aiming for an "economic war" rather than trade war to restrict

China's right to technological development, as the USD50 billion tariffs mainly

target industries related to the development-focused "China 2025" campaign, 21st

Century Business Herald said in a commentary. As long as the U.S. respects

China's key interest, which is the rights of development, the two sides can

achieve mutual benefits through negotiations, the newspaper said. China has

adjusted the pace and strength of deleveraging amid escalating trade tensions,

but will not pause its deleveraging campaign, the newspaper added. The size of

China's stock market will not shake China's determination or capability to

counter the trade war, the newspaper added.

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

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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