MNI China Press Digest, June 1:Liquidity, PBOC, Capital Market

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

on Monday:

     The PBOC should cut the reserve requirement ratio or use the medium-term

lending facility (MLF) to offset the upcoming maturity of a large amount of

reverse repos, according to Ming Ming, chief analyst at CITIC Securities. Ming's

comments where cited in a report in the Securities Daily, which also said there

would be a total of CNY993 billion of funds matured in the open market,

including the maturity of CNY530 billion of reverse repos this week, as well as

CNY463 billion of one-year MLF on June 6.

     The PBOC has no plans to take over other domestic lenders after the seizure

of Baoshang Bank, the central bank said in a statement on its website late

Sunday. Liquidity in the banking system is currently at an ample level and

financial risks are generally controllable, said the PBOC, which sought to

dispel market concerns of another bank seizure. 

     The Chinese capital market has become more resilient and the impact of the

China-U.S. trade frictions is controllable, according to a CCTV news report on

Sunday. The network's report cited Yi Huiman, chairman of the China Securities

Regulatory Commission, who said the market had gradually digested the impact of

the trade dispute since May and China was confident that its capital market

would remain stable in the long run.

--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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