MNI China Press Digest July 6: Trade, Innovation, Bonds

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

Friday:

     The U.S. is opening fire not only on targeted countries, but also on

itself, said Financial News, citing Guo Shuqing, chairman of the China Banking

and Insurance Regulatory Commission, as $340 billion in tariffs are set to take

effect. China's foreign trade does not fully rely on one country; if the list

takes effect on July 6th, the tariffs will hit both Chinese enterprises and

foreign enterprises, including American ones, Guo stressed. The escalating trade

tensions will not result in further depreciation of the yuan as the Chinese

economy has strong fundamentals, Guo noted. China will continue along current

trends and continue to reform and further open up, Guo promised.

     China's economy should transform from "high speed" to "high quality",

reported 21st Century Business Herald, citing Yang Weimin, deputy head of the

Office of the Central Commission for Financial and Economic Affairs. Liquidity

injections will not flow into the real economy without innovation, Yang noted.

Yang proposed property rights reform, putting less emphasis on ownership rights

and more on intellectual property rights, according to the newspaper. The

government should build a motivation mechanism and give enterprises autonomy to

bring in foreign talent, Yang added.

     The amount of Chinese bonds held by foreign investors has continued

increasing for 16 months since 2017, resulting in a total of almost CNY1.3

trillion, reported China Securities Daily. More foreign investment will enter

the Chinese market in the long term after Chinese bonds are added to the

Bloomberg Barclays Global Aggregate Index in 2019, the Daily said. In the second

half of the year the bond market will still be attractive to foreign investors

despite the yuan's fluctuations, especially to investors focused on global asset

allocation, according to the Daily.

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

--MNI Singapore Bureau; +65 8233 2326; email: Asia-Editor@marketnews.com

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