MNI China Press Digest, May 7: Economy, RRR Cut, Foreign Funds

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

Tuesday:

     China's economy has the resilience to withstand external headwinds and

achieve high-quality development, the People's Daily said in a front page report

today. During the three-day Labor Day holiday, about 195 million people

travelled domestically, with the total value of online banking transactions as

high as CNY1.29 trillion, the newspaper cited the data noting the economy has

strong internal drivers.

     Selective reserve requirement ratio cut for rural commercial banks Monday

showed the PBOC's intention to appease market sentiment by maintaining ample

liquidity, the Securities Times noted in a commentary piece today. Stabilizing

market expectations is important amid global financial market volatility due to

an unexpected escalation in trade friction between China and the U.S., the paper

said.

     China's financial industry has accelerated its opening up, introducing more

overseas capital since the start of this year, the Securities Times said today.

As of April, the State Administration of Foreign Exchange has approved 13

Qualified Foreign Institutional Investors (QFII) to bring in a total of US$4.74

billion in 2019, exceeding the total amount approved last year. A total of 12

RMB Qualified Foreign Institutional Investors (RQFII) were given the green light

to invest CNY24 billion, exceeding half of the total approved in 2018. The

market is expecting further foreign capital to flow in up to CNY600 billion for

this year -- the newspaper said, citing a report by Great Wall Securities,

noting that foreign capital is becoming important funding in the A-share market.

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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