MNI China Press Digest, July 25: PBOC, Fees Cut, Yuan

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

Thursday:

     The PBOC could cut the reserve requirement ratio in H2 to boost growth

against the backdrop of global rate cuts, the Securities Daily reported today

citing Tao Jin, a researcher at Suning Institute of Finance. Liquidity is

expected to remain stable in H2, with no tax and fee collection peak and local

government bond issuance seen completed before end-September, so aggressive

easing does not seem necessary, Tao said, the paper reported.

     Local governments should ensure irregular fees charged to companies are

removed to help ease their burden, the State Council executive meeting said late

Wednesday, adding that local authorities are strictly forbidden to pass on their

own expenses to businesses. The meeting also saw the launch of pilot projects to

deepen financial reforms and promote the opening up of the financial service

sector, according to a statement on the government website.

     China's economy is generally stable, resilient, with great potential and

can support the long-term stability of the yuan exchange rate, the Economic

Daily said in a commentary today. Further deepening reform and opening up will

further help stabilizing the FX market and there is more room for macroeconomic

policy actions to support the yuan, the paper noted, adding that the

international market is also optimistic about China's economy.

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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