MNI China Press Digest, June 29: PBOC, Employment, CSRC

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

on Monday:

     The PBOC's latest Q2 monetary policy report suggests a marginal tightening,

according to a commentary in the 21st Century Business Herald published on

Sunday. Compared with the Q1 report, the PBOC has put forward a new requirement

that monetary policy should take into account "sustainable development". This

could mean the period of the loosest monetary policy has passed, the newspaper

said. The PBOC also removed "controlling inflation" from its target as the CPI

fell. Although this will leave room for some monetary easing, the easing won't

be greater than that in the first half of the year, the commentary said. 

     China must increase the level of support to protect small and private

companies and labour-intensive firms as a way of stabilising the jobs market,

Premier Li Keqiang said at a symposium on Sunday. According to a statement on

the Government website, Li also said China should help key large-scale foreign

trade enterprises with their difficulties. China should also accelerate the

export tax rebate process, and make greater efforts to stabilize the supply and

industrial chains, the statement said. 

     China's top securities regulator says that any new plans to develop

high-quality investment banks will not have a big impact on the existing

industry, according to a spokesman for the China Securities Regulatory

Commission (CSRC). The Economic Information Daily reported the comments in

response to rumours that the CSRC plans to grant investment banking licenses to

commercial lenders in a pilot scheme which could involve at least two of the

country's largest banks. The CSRC said it was still discussing how to promote

the investment banking industry but did not disclose further details. 

--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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