MNI China Press Digest, June 3: Yuan, Land Sales

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

on Wednesday:

     U.S. interference in China's sovereignty is pushing the offshore yuan lower

as worried investors sell off Yuan assets, according to Tu Yonghong, a deputy

director with the International Monetary Institute under Renmin University. In a

commentary published in Economic Daily, Tu also attributed the recent yuan

depreciation to liquidity injections by the central bank and China's worsening

trade balances. However, Tu said the yuan is expected to stabilise as China's

economic momentum is sustainable and the trade outlook will continue to improve.

     Chinese local governments may increase land sales to developers to make up

for losses in revenues as a result of the pandemic, according to 21st Century

Business Herald citing an unnamed source. At the same time, developers are being

spurred by expansionary monetary policies to buy land at high premiums, the

Herald said citing Zhang Dawei, the chief analyst with Centaline Property. The

Herald report quoted official data which showed that Beijing and Shanghai

recorded CNY113.1 billion and CNY104.7 billion in land transactions in the five

months from January through to May, up 58% and 73% respectively from the same

period last year.

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

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

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