MNI China Press Digest March 19: Rate Hike, Futures

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

for Monday:

     Market participants expect the People's Bank of China to hike its reverse

repo rates after a very likely rate hike by the Federal Reserve on Wednesday,

reported the 21st Century Business Herald, citing analysts and traders. The PBOC

did not increase its Medium-term Lending Facilities rates last Friday, which

could be because it did not want to postpone a rollover in MLF loans to this

week; and it is likely to increase its MLF rates in April, suggested Ming Ming,

the chief fixed income analyst at China CITIC Securities.

     The opening up of China's financial market will play out in the futures

market, reported the China Securities Journal, citing Zhao Guiping, the

President of Guangfa Futures, at a forum last week. The crude oil futures listed

on Shanghai International Energy Exchange, which will begin to trade on March

26, is the first futures open to international financial markets. This will be

an important starting point for foreign investors looking to participate in

China's commodities futures market, Zhao said.

     China will take measures to continue supporting the growth of consumption

in new areas, including environmentally friendly products, digital consumption

and travel consumption, reported Economic Information Daily. The scale of

consumption will continue to expand, the structure of consumption will continue

to see upgrades, and consumption's contribution to GDP growth will continue to

increase, according to multiple analysts and experts cited by the report.

--MNI Beijing Bureau; +86 10 85325998; email: he.wei@marketnews.com

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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