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     BEIJING (MNI) - The following lists highlights from the Chinese press for
Monday:
     The yuan is not likely to depreciate continuously in the second half of the
year, China News Service reported, citing experts, after the yuan central parity
rate weakened 206 basis points to 6.6166 as of last Friday. China will likely
not reform its exchange rate formation mechanism, and the US dollar index will
remain strong in the second half of the year, said Xie Yaxuan, chief macro
analyst of Merchants Securities, according to the newspaper. The yuan will
fluctuate between 6.25 and 6.75 against the US dollar, Xie predicted. There are
still some uncertainties on the yuan as the trade escalation evolves, and the US
dollar's posture against the emerging currencies may change; however, the yuan
is very unlikely to drop below 7.0 within the year, said Zhang Ming, analyst of
Chinese Academy of Social Science, according to the newspaper.
     Yi Gang, governor of the People's Bank of China (PBOC), has proposed a
policy package to increase bank lending while reducing lending costs to small
and micro-sized firms, reported Xinhua News Agency. Small and micro-sized firms
are the new driving force of China's economy, which boost employment and
stimulate innovation, Yi said. The PBOC will raise the cap of relending and
rediscounting by CNY150 billion to support small firms and agriculture, Yi
noted. The key objective of the policy package is to increase the number of
enterprises that can acquire bank loans, and to enhance the financing structure,
Yi added.
     The resilience of China's economy will likely stabilize GDP growth at 6.6%
this year, reported Economic Information Daily, a Xinhua newspaper. It is
necessary to be cautious of potential negative effects, especially from trade
tensions between China and the U.S., the newspaper noted. Real estate investment
will most likely slow down as regulatory policies were tightened in the first
half of the year. However, the PBOC's looser monetary policy will ease credit
conditions and the policies to expand domestic demand will drive the growth in
sales of consumer products, said the newspaper.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: sherry.qin@marketnews.com
--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com
[TOPICS: M$A$$$,M$Q$$$,MBQ$$$]

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