MNI China Press Digest, Oct 14: Trade, Inflation, PBOC

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

on Monday:

     Future communication between China and the U.S. will aim to pave the way

for a signed trade deal between the two countries, said Global Times in an

editorial on Sunday. After fruitful results from the thirteenth round of trade

talks, the newspaper said that although not all differences could be resolved,

they should not be grounds for confrontation. Global Times called on the U.S. to

approach the talks with a constructive attitude.

     China's September CPI is expected to remain unchanged from August's 2.8%

y/y gain, while the PPI could further decline by 1.2% y/y, China Securities

Journal reported. The CPI data set for release on Tuesday is expected to show

the upward pressure from rising pork prices will gradually ease with the release

of more pork reserves. This would leave greater room for policy manoeuvre, the

newspaper said citing unnamed analysts.

     The issuance of central bank bills will continue to be a major tool in

promoting supply-side structural reform, according to an article published in

the PBOC controlled newspaper Financial News. The article, authored by the

PBOC's Monetary Committee, says that issuing in Hong Kong is effective in

promoting the internationalization of the yuan and stabilizing market

expectations, particularly amid increased external headwinds.

     Foreign investors have increased their holdings of Chinese yuan bonds for

the 10th consecutive month, with total holdings at CNY1.79 trillion by the end

of September, Securities Daily reported. Citing data from China Central

Depository & Clearing, the Daily reports that the net increase in September was

CNY70.67 billion, a rise of CNY45.42 billion from August. More overseas funds

will invest in China's bond market as it continues to open, the newspaper said.

--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$$$$]