MNI China Press Digest, July 10: Baoshang, Mortgage, Deposit

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

Wednesday:

     Baoshang Bank, the small lender seized by the PBOC earlier this year, has

completed the process of replacing all of its Negotiable Certificates of

Deposits (NCDs), according to the PBOC. Through its Weibo account, the Central

Bank said today that it had endorsed the new NCDs, along with the China Banking

and Insurance Regulatory Commission and the Deposit Insurance Fund. 96.5% of the

NCD holders agreed with the replacement, which concerned NCDs amounting to a

total of CNY43.59 billion, the PBOC statement said.

     Chinese mortgage lending rates are likely to rise this year as banks'

credit funds tighten, according to a report in the PBOC controlled newspaper

Financial News. Citing Li Wanfu, an analyst at the Rong360 Big Data Research

Center, the report says that tighter regulation in housing hotspots would also

expert upward pressure on rates.

     Regulators should take timely measures to curb the rise in deposit interest

rates, Economic Daily said in a commentary today. Deposit rates have been rising

due to fierce competition from commercial banks, the advent of new financial

vehicles and enthusiastic investor sentiment, the newspaper said.

     China's Vice Premier and top trade negotiator Liu He spoke with U.S. Trade

Representative Robert Lighthizer and U.S. Secretary of the Treasury Steven

Mnuchin in a telephone call on Tuesday night to discuss the implementation of

the U.S./China consensus reached at the G20 summit in Osaka. China's Minister of

Commerce, Zhong Shan, also participated in the call, according to a statement on

the Ministry of Commerce website.

--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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