MNI China Press Digest March 23: Fed Rate Hike Impact, Yuan

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

Friday:

     The U.S. Fed interest rate hike and the PBOC's OMO rate hike have had no

major short-term impact on China's stock and property markets, Securities Daily

reported. Should China's money market or benchmark interest rates rise further

in step with a possible faster pace of more hikes by the U.S. Fed, the stock and

property sectors will face more headwinds, the Daily reported citing analysts. A

possible benchmark rate hike hurts the property market by adding financing costs

for developers and reducing home buyers' desires to purchase, the Daily cited

analysts as saying. 

     The yuan may maintain overall stability and trade in both directions as the

U.S. dollar fluctuates, China Securities Journal said. The dollar weakened even

after the Fed hike because investors judged it insufficient to prop up the

sliding dollar. The yuan may remain stable given balanced supply and demand and

China's resilient economy.

     The PBOC's lower-than-expected money-market rate hike led to drops in

yields on China Government Bonds, 21st Century Business Herald reported. Bond

market will face more uncertainties after the end of the National People's

Congress, tightened interbank liquidity at month-end and more issuance of local

government bonds, the newspaper said.

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

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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