MNI China Press Digest, July 12: GDP, Monetary Policy, Opening

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

on Friday:

     The Chinese economy is expected to grow steadily in the second half of this

year with GDP in a range between 6.2 and 6.4%, 21st Century Business Herald

reported today. The key to stabilizing investment growth in H2 would be a boost

to infrastructure investment, although it was unlikely that this would drive a

significant rebound in overall investment, the newspaper said. Manufacturing

investment is expected to stabilize at a low level, while property investment

will remain high and make a bigger contribution to GDP than last year, the

Herald report said.

     China's high rate of inflation is unlikely to impact on monetary policy in

the short term because it is being driven by higher food prices which comprise a

relatively small component of disposable income, according to an article in the

China Securities Journal today. Citing Tang Liming, an analyst at Dongxing

Securities, the Journal's report said China's monetary policy may have further

room for easing if the U.S. Fed cuts interest rates. China could act by

selective cuts to the reserve requirement ratio (RRR), and by offering

preferential interest rates for private and small companies and those in

high-tech manufacturing and new service industries.

     China still has room to expand market access in trade and investment,

Economic Information Daily said in a front-page commentary today. China should

further promote the opening of the automobile, telecommunications and financial

markets for foreign investment, as well as establish partnerships with

multinational corporations to boost their confidence in doing business in China,

the newspaper said.

--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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