MNI China Press Digest, July 16: HK, Bonds, Foreign Business

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

on Thursday:

     China will retaliate against the U.S. if it does not stop interfering in

Hong Kong and other Chinese internal affairs, People's Daily said in a

commentary. Under the byline "Zhongsheng", or trolling bell, a homophonous

byline meaning "Voice of China", the commentary said the U.S. had used typical

"hegemonic thinking and bandit logic" to enact the Hong Kong Autonomy Act. This

external pressure would not shake China's determination to safeguard its

sovereignty and Hong Kong's prosperity and safety, the Daily added.

     China has reiterated its ban on local governments using money raised by

special-purpose bonds to pay old debts, according to a statement from the State

Council Executive Meeting. The statement, from a meeting chaired by Premier Li

Keqiang, stressed that local governments should tighten regulation over the use

of money and prohibit 'white elephant' projects. Local governments are able to

use the bond proceeds for disaster relief, the statement said. Xinhua News

Agency said severe flooding has hit several provinces along the Yangtze River in

South China and water levels in some places in Jiangxi are at historic levels.

     Chinese President Xi Jinping has promised to deliver an improved business

environment for domestic and foreign companies and has told international

corporate chiefs they have made the correct choice to stay in China, according

to the official Xinhua News Agency. In a letter to international chief executive

officers, Xi said China's economic fundamentals driving growth have changed and

will stay consistent in the future.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: archie.zhang@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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