MNI China Press Digest, June 19: China-U.S., Rate Cut, Bills

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

on Wednesday:

     China will not engage in power games with the U.S. or give in to

Washington's unreasonable demands, the People's Daily Overseas Edition said in a

commentary today. Instead, China will persist in reform and opening up, looking

for mutually beneficial development with all countries, the newspaper said.

     In the face of ongoing attacks by the U.S., Huawei and China's

semiconductor industry as a whole need to hone their skills and come out

stronger as soon as possible, the Global Times said in a commentary late

Tuesday.

     The PBOC is unlikely to cut benchmark interest rates in the near term, the

Economic Information Daily said today citing several analysts, noting that a

marginal and targeted easing is a higher possibility than a comprehensive

easing. Even if the PBOC cuts rates, it will try to liberalize them at the same

time, the newspaper said citing Wen Bin, chief analyst at China Minsheng Bank.

The PBOC will lower short-term policy rates to guide the money and bond market,

and finally let commercial banks independently price the loan interest rate, Wen

added.

     The PBOC will sell CNY20 billion one-month yuan-denominated bills along

with CNY 10 billion six-month bills in Hong Kong on June 26, according to a

statement on the PBOC website today.

--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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