MNI China Press Digest, Dec 3: Yuan, PBOC, Real Estate, Pork

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

on Tuesday:

     Depreciation pressure on the Chinese yuan against the U.S. dollar has

eased, as shown in the narrowing price gap between the offshore and onshore

yuan, Securities Daily reports. Citing Wang Lijuan, a deputy researcher at the

China Banking Association, the Daily's report notes that the offshore yuan is no

longer naturally stronger against the onshore currency. Wang said the PBOC

should closely track market changes and take necessary measures to reduce the

procyclical behavior of the currency, while also improving the flexibility and

transparency of the yuan.

     The PBOC will continue to use structural monetary policy tools such as

targeted cuts to the reserve requirement ratio and medium-term lending

facilities to encourage the refinancing of private and small companies,

Securities Daily reports. Citing Wang Qing, chief macroeconomic analyst at

credit rating agency Dongfang Jincheng, the Daily's report says the PBOC could

also further expand the rediscount quota. Wang said rates for the medium-term

lending facility and 7-day reverse repos are expected to be lowered, which would

in turn guide the one-year Loan Prime Rate lower.

     State-controlled newspaper Economic Daily has warned that relaxing controls

on the real estate market will create "bubbles" which will harm the economy. In

its editorial, the Daily asked city authorities to be cautious in adjusting real

estate policies despite decreasing sales, investment and slower economic growth.

     China will make every effort to secure pork supplies during the Chinese New

Year at the end of January and also during the People's Congress session in

March, according to the Ministry of Agriculture's website. Han Changbin, the

minister, said at a internal meeting that the ministry will ensure pork capacity

grew to its previous level by the end of 2020.

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

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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