MNI China Press Digest June 22: Xi, Yuan, Structural Reform

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

Friday:

     Chinese President Xi Jinping said protectionism and unilateralism should be

avoided as globalization becomes an irreversible trend, according to the

official Xinhua News Agency. All countries should not stop opening to each

other, should seek quality growth and cooperation, Xi said. China's high-quality

development will also advance as it further opens up, Xi said. China will

continue to significantly expand market access for foreign investors, improve

its investment environment, enhance protection of intellectual property, and

increase imports, Xi said.

     Despite the recent depreciation of the yuan, the currency is expected to

maintain an "orderly and mild status", Financial News, a newspaper of the

People's Bank of China said. As the dollar rose due to strong economic growth in

the U.S., the hawkish stance of the Fed and drop in the euro, and uncertainties

surrounding trade conflicts, the yuan has faced downward pressure, the newspaper

said. But China's FX market's demand-supply dynamics and market expectation are

basically stable, and the yuan exchange rate should not experience big

fluctuations, the newspaper said. The yuan's outlook will depend on China's

economic fundamentals, Guan Tao, former official of the State Administration of

Foreign Exchange, was quoted as saying.

     China should stick to deleveraging and structural reforms, Economic

Information Daily, a newspaper managed by the Xinhua News Agency, said in a

front-page commentary. China should not change its policy direction due to

recent bond defaults or fluctuations in the stock market and asset prices as

some people suggest, the commentary said. Such fluctuations resulted from the

country's deleveraging and strict financial regulation, and China's economy is

resilient enough to tackle the challenges, the newspaper said. The financial

sector should be ready for "bitter days," a switch from its previous rampant

expansion and overleveraging, it said, adding China will not loosen monetary

policy to add liquidity into the market to a large degree.

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

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

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