MNI China Press Digest, Nov 16: Rate Cut, Fiscal Deficit, Yuan

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

Friday:

     -The market is expecting a further reserve requirement ratio cut by the end

of this year and an interest rate cut for the year ahead, 21st Century Business

Herald said Friday, citing Shen Jianguang, chief economist at JD Finance. The

corporate financing rate is relatively high, and the downward pressure on the

economy will continue into next year. Thus, the central bank is likely to guide

the money market rate down, by adjusting the 7-day repo rate. The Medium-term

Lending Facility rate and Standing Lending Facility rate will also be lowered,

the newspaper said, citing Shen. (Link to the story: https://bit.ly/2zWxJ5z)

     -China's fiscal deficit is expected to return to 3% or more of GDP next

year, Securities Daily said Friday, citing Zhang Jun, chief economist at China

Fortune Securities. As the government looks to expand tax cuts and increase the

scale of local government bond issuance, it will look to increase fiscal

expenditure by increasing the fiscal deficit next year, the Daily said citing

Zhang. (Link to the story: https://bit.ly/2zb4Bro)

     -Financial markets are optimistic the yuan will remain stable at its

current level against the U.S. dollar, rather than depreciating to test the 7

level, the China Securities Journal said Friday. The dollar index may be

unlikely to continue pushing higher, which help to ease the external pressure on

yuan, the Journal said. Internally, with a series of policies to stabilize

economic growth, and the regulators' effort to strengthen macro-prudential

management, the yuan rate will remain basically stable at a reasonable and

balanced level, the Journal said. (Link to the story: https://bit.ly/2DEkgU4)

--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

[TOPICS: M$A$$$,M$Q$$$,MBQ$$$]