MNI China Press Digest, Nov 11: Trade War, Yuan, Inflation

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

on Monday:

     China won't rush to reach a deal with the U.S. even as it is in favour of

one, as China doesn't believe a deal will fundamentally change China-U.S.

economic relations, the Global Times said in an editorial on Sunday in response

to President Donald Trump saying China wants a deal more than the U.S. Trump,

who disparaged China's supply chain as "all broken like an egg", was

exaggerating U.S. strength to cover up its own downturn, it said. China, which

has the world's widest range of manufacturing capacity, isn't afraid of any

games against its supply chain, the newspaper said.

     China's full opening-up of its financial sector will help stabilizing the

yuan in the long term, the Economic Information Daily said. More foreign

investors in the Chinese market will help smoothen the flow of cross-border

funds, lending fundamental support to the yuan, the newspaper said.

     China's inflation is expected to remain high into the first quarter next

year, and some monthly reading may exceed 4% y/y from 3.8% in October, the

Shanghai Securities Journal reported citing Liu Xuezhi, a senior analyst at the

Bank of Communications. Pork prices will continue to be the main driver for

rising CPI, the newspaper said.

     Chinese commercial banks must deepen supply-side reform to better serve

quality development of the economy, said Economic Daily in a commentary. Banks

failed to meet the needs of private and small companies for financial services,

but instead leaned too heavily on local governments, state-owned enterprises and

real estate industry, the newspaper said. Banks give too much credit to

state-backed borrowers and lack the ability to detect risks of rapidly rising

leverage ratios, the newspaper said.

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

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

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