MNI China Press Digest, Dec 4: PBOC Yi, Tariff, Yuan

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

Tuesday:

     Chinese policymakers should strengthen counter-cyclical regulation, said

Shanghai Securities News on Monday night, citing a report written by Yi Gang,

governor of the People's Bank of China. Policymakers should adopt tools to

ensure a soft landing when the economy is overheated or there is a bubble in

asset prices, and, in the event of a recession or external stocks, authorities

must promptly stabilize financial markets to boost confidence, Yi said. (Link to

the story: https://bit.ly/2QbqPEx)

     Chinese authorities are mulling reducing tariffs on vehicles imported from

the U.S., but it is unclear when and to what extent the tariff will be lowered,

the Securities Daily said Tuesday, citing an anonymous insider. The source

expected the tariff will fall to 15%, from the 40% imposed in July as a response

to U.S. tariffs, the Daily said (U.S. President Donald Trump tweeted Monday

suggesting a similar move from China). Although it will take time yet for a

formal decision, one is expected before the end of the year, the newspaper said

citing the insider. (Link to the story: https://bit.ly/2E2mOuu)

     The yuan exchange rate is unlikely to fall below the psychological 7 mark

against the U.S. dollar in the last month of the year, as external risks seem be

to easing, said China Securities Journal in its front-page on Tuesday. An

increasing number of market participants believe the U.S. economy is gradually

approaching a turning point, as fiscal stimulus starts to fade and the lag

effect of raising interest rates begins to appear. The Fed has limited room for

further interest rate hikes, the Journal said. Meanwhile, the Sino-U.S. rate

spread remains stable at a low level, which will also help to ease depreciation

pressure on the yuan, the newspaper said. (Link to the story:

https://bit.ly/2E1ralY)

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

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