MNI China Press Digest, Dec 10: Rate Cuts, PBOC, Huawei

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

Monday:

     Allowing commercial banks to set interest rate themselves in a market-based

approach is a better way of easing financing difficulties for the private sector

than simply seeing the central bank cutting the benchmark rates, China

Securities Journal reported Saturday, citing Sheng Songcheng, former director of

the Survey and Statistics Department at the PBOC. With inflation at current

levels, there is little room for downward adjustment of rates. And the benchmark

loan rates which are between 4.35% and 4.9% are not high in real terms, the

newspaper said, citing Sheng. (Link to the story: https://bit.ly/2SG6d41)

     All financial activities must undergo strict market supervision, and they

musn't be hidden from regulation under the guise of technology, China Securities

Journal said Saturday, citing Pan Gongsheng, deputy governor of the People's

Bank of China. The PBOC will adopt strict supervision on financial institutions,

internet firms or fintech start ups, using rules and standards consistent with

existing operations, the newspaper said citing Pan. (Link to the story:

https://bit.ly/2Ps7Os3)

     China Daily warned in an editorial Sunday that Canada had surrendered to

the 'ugly politics' of the U.S. with the arrest of Huawei's CFO and the move

could have serious consequences for relations with Ottawa. The paper said the

arrest, at the behest of the U.S., had seen Canada treat the Huawei CFO as a

dangerous, with her treatment since arrest intended to humiliate her and China,

the Daily said. The U.S. has been pressuring other countries to limit the use of

Huawei technology, and the latest sees that pressure becoming more aggressive,

the newspaper said. (Link to the story: https://bit.ly/2BZVBaI)

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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