MNI China Press Digest Nov 27: Easing, Coexistence, Long China

The following lists highlights from Chinese press reports on Friday:

China's central bank is likely to continue marginal easing into next year, the Securities Times reported citing Ming Ming, Deputy Director of CITIC Securities Research Institute. Speaking after the release of the PBOC Q3 Monetary Policy Implementation Report, Ming said the central bank may focus on controlling the credit supply and keep the macro leverage ratios basically stable. The current inter-bank liquidity is relatively low, and continued tightening may cause a "policy cliff" and rapid deleveraging which would not be conducive to economic development, Ming said.

The incoming Biden administration will be judged on how constructive it can be in managing its differences and in seeking coexistence with China, the Global Times said in an editorial. Major U.S. allies all have extensive cooperation with China and their strengthening alliances with the U.S. do not mean decreasing ties with China, the newspaper said. China's economic expansion gives it the right to partake in rule-making with other countries, even as the U.S. accuses China of trying to supplant its own dominance, the Times said.

More global investors are betting on China's stable economy, fast-improving trade structure and low asset valuations and are going long on their Chinese investments, said Securities Times in a commentary. The upward trend in both Chinese stock markets and the yuan exchange rate in the past few months has attracted faster capital inflows, while the continued appreciation of the yuan will increase the value of yuan assets and further attract capital, the newspaper said. Investors are now fearing they will lose out if they do not invest in China, the commentary said.