MNI China Press Digest, July 4:Trade, Manufacturing, Liquidity

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

on Thursday:

     Local governments will give more authority to free trade pilot zones in

granting approvals for investment and market access, China's State Council

executive meeting announced on Wednesday. According to a statement on the

government website, China is planning to add a new batch of cross-border

e-commerce pilot zones in addition to the 35 zones which have already been

established.

     China is planning new policies to promote clusters for advanced

manufacturing, according to a report in the Economic Information Daily today.

The newspaper said the clusters would focus on emerging industries and

technologies such as artificial intelligence, integrated circuits, and new

energy vehicles. At the same time, smart manufacturing in China is expected to

attract significant foreign investment, according to the report.

     Liquidity injections by the PBOC in June have ensured high levels of

liquidity in the Chinese banking system, with overnight repurchase rates

dropping below a record low of 0.72% this week, Securities Daily reported today.

Citing Tao Jin, a researcher at Suning Institute of Finance, the newspaper said

the PBOC may further liberalise interest rates - and in particular lending rates

- this year. Tao said that liquidity would flow faster from the banking system

to the real economy, and the conduction time will be further shortened to 2 to 3

months from the previous two quarters.

--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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