MNI China Press Digest, July 1: China-U.S., Investment, OMOs

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

on Monday:

     China must maintain a strong line in its trade negotiations with the U.S.

as this will help achieve an equal deal, said Global Times in an editorial late

Sunday. The editorial said China's perseverance in fighting against U.S. trade

bullying over the past few months had been key to the ice-breaking agreement

between Presidents Xi and Trump at the G20 summit. China is well-prepared for

any uncertainty in future trade talks, given that the Trump administration has

repeatedly contradicted itself in the past, the newspaper said.

     The latest version of China's list banning areas for foreign investors has

been shortened to 40 items from 48, according to a statement released by the

National Development and Reform Commission and the Ministry of Commerce on

Sunday. The new policy has relaxed investor access to urban gas, cinemas,

telecommunications, oil and gas exploration, as well as the agricultural, mining

and manufacturing sectors.

     Liquidity in the Chinese financial system is likely to remain loose, which

meant there is little need for the PBOC to restart open market operations early

this month, China Securities Journal reported today citing unnamed analysts. The

newspaper said the excess reserve ratio at financial institutions remained at a

high level. The PBOC skipped OMOs today for the sixth consecutive day.

--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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