MNI China Press Digest, July 5: Financing, Liquidity, China-US

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

on Friday:

     China's National Development and Reform Commission is planning new

structures to foster more innovative infrastructure financing models, according

to a report in the Economic Information Daily today. The newspaper said the

Commission was working with other government departments on structures that

would attract more private capital to major projects. Finding stable sources of

funds for investment projects will be a key focus of finance system reform going

forward, the report said.

     The current low interest rate environment in Chinese money markets was

difficult to sustain, according to a report in the China Securities Journal

today. Citing several analysts, the report said interest rates were being driven

by ample levels of liquidity, but this was expected to moderate in the near

term. Liquidity levels, however, were unlikely to be significantly tightened

given that the PBOC still needs enough liquidity to manage risks, stabilize

economic growth and lower interest rates for small companies, the newspaper said

citing reports by Huatai Securities and Tianfeng Securities.

     Calls from U.S. business and government leaders for President Trump to

moderate his policies towards China showed the political diversity of U.S.

society, Global Times said in an editorial published late Thursday. Referring to

an open letter signed by 100 prominent Americans, expressing concern over

Trump's trade policies, the editorial said that even though there were rational

views in the U.S., they may not influence the actions of the White House and

State Department. China should be prepared for a long-term rivalry with the

U.S., the Global Times 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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