MNI China Press Digest, June 24: CPI, Bonds, Rate Reform

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

on Monday:

     CHINA PRESS: China should strive for "as high as possible" economic growth

while at the same time adjusting its structures and guaranteeing quality,

according to a report in China Business News on Sunday. The newspaper quoted Yu

Yongding, a former member of the PBOC monetary policy committee, who said that

while core CPI is easing and future inflationary pressure is controllable, China

still had room for a proactive fiscal policy and a moderately loose monetary

policy.

     CHINA PRESS: The issuance of local government bonds in China sped up in

June and amounted to CNY900 bln, China Securities Journal reported on Monday.

The journal said the issuance may represent the peak over the last three year

period. Issuance would supplement local government revenue and support economic

growth, the journal said citing market insiders.

     CHINA PRESS: Interest rate marketization in China is like a marathon which,

after years of steady improvement, is now is in its final sprint, People's Daily

said in a commentary on Monday. The merging of interest rates was not only to

"decontrol" prices, but was a key part of a complete set of policies. The

commentary said that such reform was not "felled at one stroke" and the rhythm

of reform needed to be well grasped by policy makers.

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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