MNI: China Press Digest May 28: Yuan, WMPs, Property Bubbles

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

Monday:

     The yuan is resilient against the dollar's rebound, China Securities

Journal reported. The yuan won't depreciate as much as currencies of other

emerging economies have done recently given China's stable growth, over USD3

trillion foreign exchange reserves, and the central bank's stabilizing tools

such as the counter-cyclical adjustment factor, said the newspaper. A stable and

healthy growth and prudent monetary policy fundamentally support the yuan's

steady upward move, the newspaper said. The yuan is appreciating against a

basket of currencies, according to official data, which will attract foreign

capital and support the yuan, it said.

     Financial regulators led by the People's Bank of China (PBOC) are speeding

up the re-classification and collection of statistics on wealth management

products (WMPs), Securities Daily reported, citing a PBOC official. Authorities

want to better assess the state of cross-market financial products, the daily

cited the PBOC official as saying. WMPs by security companies, funds managers,

insurance companies and private equities are expected to be classified as

newly-defined WMPs, the daily said. Regulators will soon begin assessing

financial holding companies, the daily said citing the PBOC official. 

***COMMENT: China's new rules on WMPs will take effect by the end of 2020.

Companies affected are under pressure to adjust businesses.

     China needs to maintain strict policies on the property market to contain

bubbles and restrain speculation, the official People's Daily said in a

commentary. A frenzy in the property market in some northeastern cities isn't

normal and shows that speculations may still be rampant if regulations are

loosened, the daily said. Local government officials need to understand that

they shouldn't rely heavily on property development for growth, 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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