MNI China Press Digest Nov 16: Yuan, RCEP, Bond Default

The following lists highlights from Chinese press reports on Monday:

Chinese regulators should minimize the impact of exchange rate swings on sentiment and help stabilize expectations of future movements, the Securities Daily reported citing Dong Zhongyun, an economist from AVIC Securities. Regulators should use more precise macroeconomic tools to keep the economy stable, prevent large swings in inflation and interest rates and maintain the balance of payments, Dong said. Banks should provide more convenient exchange rate risk-prevention channels and increase the efficiencies of cross-border yuan flow and offshore clearance, the Daily reported citing Liu Chendong, the Deputy Director of Economic studies of CCIEE.

The signing of the Regional Comprehensive Economic Partnership on Nov. 15 will form a regional market with unified rules and facilitate trade and investment, the People's Daily said in an editorial. The deal grants transition periods to some developing countries, showing that countries in different development stages or with different systems of governance can form partnerships, the Daily said.

Chinese regulators should calm the market and avoid systemic financial risk after the Yongcheng Coal Electricity Holding Group's default on its bonds caused the bond market to tumble, according to an opinion piece in China Securities Journal. Without intervention, the panic could reduce interest in credit bonds and hinder the bond market's normal functioning, the Journal report said. Regulators should also investigate whether Yongcheng neglected its liabilities and also step up market supervision, said the commentator.