MNI China Press Digest Nov 11: Forex, Deflation, Xi Speech

The following lists highlights from Chinese press reports on Wednesday:

Chinese foreign trade firms are buying more foreign currency on concerns that the yuan may weaken following a five-month rally, the 21st Business Herald reported citing market participants. As the U.S. election result becomes clearer, traders believe that the Yuan has peaked, the newspaper said. The companies interviewed said they may gain on exchange rates even given the extremely low interest rates on forex deposits.

China is not entering a prolonged period of deflation despite the CPI index sliding to decade-low 0.5% y/y in October, the Economic Daily commented. The low CPI resulted from a low base of comparison and declining pork prices, the Daily said. Core CPI excluding food and energy prices still rose 0.5% y/y, maintaining the pace of the previous month, the report said.

China will actively consider the COVID-19 vaccine needs of countries within the Shanghai Cooperation Organization and support the creation of hotlines among their centers for disease control and prevention, Chinese President Xi Jinping said at an SCO summit. Xinhua News Agency reported comments from Xi, who said that China would strive to preserve multilateral frameworks, support global governance and strengthen cooperation and communication. He said China welcomed participation in the the opening up of its economy and co-operation in the digital economy, e-commerce and other innovation projects.