MNI China Press Digest, Nov 6: Easing, Yuan, Central Bank

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

on Wednesday:

     The 5bps reduction in the medium-term lending facility (MLF) rate by the

PBOC yesterday sends a signal that the central bank may ease monetary policy

further to help stabilize economic growth and the labour market, China

Securities Journal reported. Citing analysts, the Journal's report said the

monetary easing is likely to be marginal and conducted at a slow pace, given

that market rates are currently low and the PBOC also needs to manage the

currency, inflation and the goal of structural de-leveraging. 

     China's yuan is expected to fluctuate in a wider range and in both

directions as it remains in a depreciation phase even despite recent

strengthening, 21st Century Business Herald reported. Citing Tan Yaling, the

director of the China Forex Investment Research Institute, the Herald's report

said the yuan may fall back to around 7.16 per dollar at the end of November,

but then rise to between 6.98 and 7.02 by end-December. The yuan strengthened to

6.99 against the dollar to hit a three-month high yesterday, driven by a

lower-than-expected dollar index, progress in China-U.S. trade talks, and

further openings in China's financial market, the newspaper said. 

     China will further modernise its central banking system, improve the

release mechanism of base money and promote a system of benchmark and market

interest rates, Xinhua News Agency reported late Tuesday. The Xinhua report

cited a document of major decisions made by China's ruling Communist Party

during the fourth plenary session of the 19th Central Committee held last week. 

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

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

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