MNI China Press Digest, Jul 31: Politburo Meeting, China-U.S.

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

on Wednesday:

     China's Communist Party Politburo on Tuesday left the tone of China's

fiscal and monetary policy unchanged, but more new measures are to be expected

in the second half, China Securities Journal said in a post-meeting commentary

today. The meeting didn't mention de-leveraging, but instead emphasized that

banks should be guided to increase medium- and long-term financing for the

manufacturing sector and private companies, the newspaper said.

     China will abandon strong stimulus and pursue high-quality growth through

long-term reforms, while adopting policies to boost consumption and stimulate

demand to stabilize the growth in the short term, the Securities Times said in a

post-Politburo front-page commentary today. More importantly, the meeting said

for the first time that "China should not use the property market as a

short-term means of stimulating the economy", indicating neither housing

regulation or the tight financing conditions for property developers will be

relaxed, the paper said.

     Some in the U.S. should not have unrealistic fantasies that China will make

concessions without principle in the trade talks, the People's Daily said in a

commentary today, combatting attempts by some U.S. politicians' to blacken

China's name. The paper urges the U.S. to show sincerity and look at the common

interests between the two countries if they want a good outcome from the current

round of trade talks.

--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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