MNI China Press Digest, March 25: Growth, PBOC, Yuan

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

Monday:

     China will continue scaling up infrastructure investment, support new

energy vehicles and tap into the potential of consumption in rural communities

as it looks to support economic growth, according to the Minister of Finance Liu

Kun. The Minister's comments were cited in the National Business Daily, which

also reported Liu as urging the accelerated issuance of local government bonds,

with the aim of using up the annual quota of CNY3.08 trillion of LGBs by

end-September.

     PBOC Governor Yi Gang has outlined the Bank's key tasks for this year,

citing the accurate pricing of financial products and the provision of hedging

tools for investors to manage risks as priorities. Yi's comments were reported

by the China Business News, and the PBOC Governor went on to say that because of

China's high deposit rate it was important to convert the savings pool into

financial products provided by banks, brokers and insurers.

     China's yuan exchange rate will remain stable and balanced because domestic

economic fundamentals are good and the U.S. dollar has limited room for

appreciation, China Business News has reported. The newspaper cites Pan

Gongsheng, the Deputy Governor of the PBOC, as saying that important progress in

Sino-U.S. trade talks will also contribute to exchange rate stability. Pan also

said that China's macro leverage ratio is basically stable, fiscal and financial

risks are generally controllable, the international balance of payments remains

balanced, and FX reserves are sufficient. All of these factors support a stable

yuan, Pan said.

--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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