MNI China Press Digest, Jan 3: Trade Deal, GDP, Bond Market

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

on Friday:

     Any future implementation of the phase one trade deal between China and the

U.S. would offer a short respite from trade conflicts but leave the main

economic divergences unsolved, the Global Times said in an editorial late

Thursday. The trade deal could be seen as the starting point for the two biggest

powers to seek boundaries for their behaviours and interests, the editorial

said. China should adjust its actions and policies as the U.S. had labelled

China as a competitor instead of a friend.

     China's 2019 gross domestic product is expected to approach CNY100 trillion

and reach US$10,000 per capita, the China Securities Daily reports. Citing

analysts, the Daily's report says the Chinese economy has good momentum with

technological progress and improved production efficiency.

     China's bond market may continue to tumble if the upcoming reserve

requirement ratio cut fails to stimulate and if a large number of new local

government special bonds disrupt the market, the China Securities Journal

reports citing analyst interviews. The Journal also cites Zhou Guannan, the

chief fixed income analyst at Huachuang Securities who said that while the

scheduled RRR cut next Monday is in line with market expectations, the market

had already reacted to it in advance. The article also quoted a CICC report

which said that the issuance of special bonds could reach as much as CNY700

billion to 800 billion in January.

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

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

[TOPICS: M$A$$$,M$Q$$$,MI$$$$]