MNI China Press Digest June 27: Yuan, IP Protection, Liquidity

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

Wednesday:

     Devaluation of the yuan will leave some margin for China-U.S. trade

tensions, said Wang Youxin, foreign exchange researcher of Bank of China,

reported by Securities Daily, after the PBOC set the central parity rate at

6.5180 yesterday, the lowest since January 10th. The trade tensions and huge

policy divergence between China and the U.S. resulted in the devaluation, said

Wang Qing, chief macro analyst of Golden Credit, according to the Daily. But

regulators have increased their tolerance for wide fluctuations; they are not

likely to intervene in the short term. In the long term, the yuan will not

continue to decline due to the resilience of China's macro economy, said the

Daily.

     Chinese Premier Li Keqiang said China pledges to protect intellectual

property rights and will never force technology transfer, reported the People's

Daily. His comments were made when he welcomed French enterprises to expand

cooperation with China. Li noted that China will continue to open up and promote

trade liberalization. China welcomes foreign enterprises to expand high-tech

cooperation, Li said. China will also provide greater convenience for foreign

enterprises to conduct business in China, Li added.

     The People's Bank of China (PBOC) resumed open market operations yesterday,

sending a clear signal to maintain sufficient market liquidity, said China

Securities Journal. June's large fiscal expenditure will also boost the supply

of liquidity to the market, said the Journal. The regulation requirement of

liquidity has changed from "steady and prudent" to "proper and sufficient,"

confirming a looser monetary policy as of last Wednesday's executive meeting of

the State Council, according to the Journal.

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

--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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