MNI China Press Digest, Oct. 22: Market, Investment, Inflation

     BEIJING (MNI) - The following lists highlights from Monday's Chinese press:

     Five policies to stabilize the market, including improving fundamental

market systems, encouraging long-term funds to enter the market, promoting

reform of state-owned enterprises and the development of private companies,

along with the expanding the opening up (of the economy) should be implemented

quickly and firmly, said officials attended the meeting of the State Council's

Financial Stability and Development Committee, according to the announcement on

the government website published on Saturday. The statement also pointed out

three major directions for current financial work, which includes implementing a

sound and neutral monetary policy, enhanced vitality of small and micro firms

and strengthening the role of capital markets, the announcement said. (Link to

the story: https://tinyurl.com/y7us4stt)

     Ongoing inflows of capital underlines investors' confidence in China, the

People's Daily said in an opinion piece published Monday. Through the end of

September, foreign investors have bought in more than CNY230 billion of A-shares

this year, according to an official in the China Securities Regulatory

Commission. The proportion of foreign shareholdings is comparable to insurance

funds, making them a force to be reckoned with, the Daily said. In the first

eight months, foreign investors established 41,131 companies in China, an

increase of 102.7% y/y, with a total $86.5 billion, making China the top

destination of foreign direct investment, the Daily said. (Link to the story:

https://bit.ly/2q31Tzx)

     There is no underlying basis for retail prices to push higher and the

annual CPI gains will likely be limited to 3%, the People's Daily Overseas

Edition said Monday, downplaying concerns of higher inflation after September's

CPI print hit a seven-month high. The main drivers behind the recent CPI gains

are mainly seasonal short-term factors, including high temperature, typhoon, and

heavy rainfall, all unlikely to prop up prices in coming months, the Daily said

citing Zhao Xijun, vice president of the school of finance at the Renmin

University of China. (Link to the story: https://bit.ly/2NXAA2W)

--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

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