MNI China Press Digest, May 28: Rate, HK, Australia

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

on Friday:

     By keeping rates for open-market operations unchanged the People's Bank of

China has indicated it does not want to keep rates in the money market at

previously ultralow levels, China Securities Journal reported quoting Ming Ming,

the chief fixed-income analyst with Citic Securities. Wen Bin, the chief analyst

with Minsheng Bank, told the newspaper the central bank may tap multiple

monetary policies in June including reserve ratio cuts, Medium-term Lending

Facilities and other open market operations to maintain ample liquidity and

stabilise interest rates.

     Cancelling Hong Kong's separate customs status is the only way the US could

have a substantive effect on China, while revoking its special trade status

would also hit many US companies and exports, Global Times said in an editorial.

The newspaper said that Hong Kong is being used as a pawn by the U.S. to

confront China. China, with a huge economy and improving systems, has the

capability to support a global financial centre, the newspaper added.

     The Chinese embassy in Australia has strongly condemned the joint statement

by Australia, the U.K., Canada and the U.S. on the issue of Hong Kong.

"Australia has many laws on its national security issues. So what qualifies

Australia to question China's legislation for the national security for Hong

Kong?" the Embassy said in a statement released on Friday. "We reject the

unfounded accusations in the statement. Hong Kong affairs are purely China's

internal affairs, and no foreign interference is allowed," the statement said.

--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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