MNI China Press Digest, Dec 18: Yuan, Land, Premier Li

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

Tuesday:

     China should not give up its management of cross-border capital flows, or

directly intervene in the foreign exchange market when the yuan exchange rate

fluctuates greatly in the future, China Business News reported today, citing Yu

Yongding, a member of the Chinese Academy of Social Sciences. Financial

regulators should vigorously push the development of China's derivatives market,

so as to offer hedging tools for enterprises to avoid exchange rate risk, the

report said, citing Yu. In the near future, the yuan still faces depreciation

pressure, Yu added.

     China's National Development and Reform Commission is conducting a

feasibility study on interprovincial land transactions -- in effect, provinces

in need of more construction land will be allowed to purchase from other

provinces with abundant arable land. The move will be to help alleviate poverty

and promote economic development, the Economic Information Daily reported today,

citing insiders.

     China is still a developing country and will be for some time, based on the

current standards of any international organization, despite China's economy

becoming the second largest in the world, the People's Daily reported today,

citing Premier Li Keqiang. Li pledged that the government will continue to

deepen reforms, further expand the opening-up, create a fair business

environment, strictly protect intellectual property rights, whilst committing to

the development of a higher level of open economy, the Daily said. China has

both the conditions and ability to cope with various risks and challenges,

maintaining stable economic growth, the newspaper added, citing Li.

--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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