MNI China Press Digest, June 23: China-EU, Rate Cuts

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

on Tuesday:

     China and the European Union will strive to complete negotiations on an

investment and trade deal this year and reach a comprehensive, balanced and

high-level investment agreement, said Premier Li Keqiang during the China-EU

virtual summit. Li's comments, published on the government website late Monday,

said China hoped the EU will keep its trade and investment markets as open as

China's, relax export restrictions and facilitate bilateral high-tech trade.

Both sides should strengthen macroeconomic policy coordination and jointly

maintain the stability of the global supply chain, Li added.

     China still has room to lower its medium-term lending facility (MLF) and

open market operation rates by about 40 bps this year, the National Business

Daily reported. Citing Wang Qing, chief analyst with Golden Credit Ratings, the

Daily's report says that even though the PBOC kept the Loan Prime Rate (LPR)

unchanged yesterday, the LPR was expected to fall in the second half of the year

following possible MLF rate cuts. These cuts would occur as banks aim to fulfil

the target of sacrificing CNY1.5 trillion in profit to support corporates this

year, the newspaper 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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