MNI China Press Digest July 10: GDP, Sino-US, Private Equity

Highlights from Chinese press reports on Monday:

• China’s economy is on track to achieve its 5% economic growth target despite headwinds in H2, according to the latest Yicai Chief Economist Survey. The participants on average estimated GDP grew 6.97% in Q2 y/y, with CPI for June forecast at 0.18% and PPI down 4.89% y/y. The headline index fell to 50.21 in June, down from 50.27 in May, the fourth consecutive monthly decline, but still above the 50 mark which indicates expansion. The economists said the People’s Bank of China will likely not cut the LPR in July and the yuan will appreciate to CNY6.97 against the U.S. dollar by year's end. (Source: Yicai)
• China expects the U.S. will take practical actions to stabilise relations after U.S. Treasury Secretary Janet Yellen’s visit to Beijing last week, according to state-owned television network CCTV News in a commentary. The U.S. should remove the tariffs imposed on China as soon as possible, relax export controls and lift sanctions on Chinese companies to create conditions for companies of both countries to expand trade and investment cooperation. Though Yellen said the visit was “direct and productive," CCTV noted Yellen still talked about “national security” and the formulation of “fair” economic rules. This shows differences over improving economic and trade cooperation between the two countries still exists and the U.S. has more to do, CCTV said. (Source: CCTV News)
• Policymakers will implement measures to reform the private equity industry to increase the proportion of direct financing and promote economic development, according to the State Council. Private equity investors will benefit from the new rules covering seven chapters and 62 articles, which will better protect their rights, support the real economy and promote technological innovation, the State Council said. Authorities will treat venture capital funds separately in order to encourage and guide more investment in innovative start-ups. The new measures will come into effect on 1 September. (Source: State Council Website)