MNI China Press Digest, Nov 13: Mon Pol, Investment, Open Up

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

on Wednesday:

     China should use counter-cyclical adjustment tools more effectively to

maintain the stability of macroeconomic policy, China's Premier Li has said.

Li's comments, at a Nov 12 meeting with economists and entrepreneurs, were

reported by the China Securities Journal, whose report quoted the Premier as

saying that counter-cyclical adjustment was needed to maintain liquidity. On the

other hand, Li said China needed to avoid creating expectations around higher

inflation and leverage. Structural tools, rather than quantitative tools, were

more effective in managing the flow of funds by setting preconditions, which was

a better policy option than excessive force, Li said.

     Chinese central and local governments are moving ahead with major

investment projects with the aim of hitting the "stabilizing investment" target

in the fourth quarter, Economic Information Daily reported Wednesday. The launch

of the major investment projects will help to maintain stable investment levels

and help boost the economy, the Daily said.

     China is accelerating the opening of its financial sector with new measures

expected soon, Economic Information Daily reports. In an article citing the

Caijing magazine annual general meeting on Wednesday, the Daily's report notes

recent measures such as new regulations on foreign capital in the banking and

insurance industries. These measures would speed up foreign investment and open

up a better environment for the development of the China's institutional

financial sector, the Daily reports.

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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