MNI China Press Digest, Sept 16: PBOC, China-U.S., Regulation

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

on Monday:

     China's monetary policy is expected to remain stable even if the PBOC cuts

interest rates at the same time as other central banks, Securities Times said in

a front-page report. The upward CPI would restrain the central bank from further

easing while the PPI deflation pressure does not support further tightening, the

newspaper said. In this scenario, monetary policy may be eased marginally by

ensuring the supply of funds needed to stabilize the economy and reducing

financing costs, the Times report said.

     A stronger China is the most effective way to boost bi-lateral ties with

the U.S., according to an editorial in Global Times on Saturday. The newspaper

said China needed to be vigilant against extreme conservatives in the U.S., who

were exerting a destructive influence on Washington's China policy. China should

continue to guide Sino-U.S. relations towards a healthy path, the editorial

said.

     China is planning to roll out a package of new risk prevention measures

with a particular focus on the stronger supervision of financial institutions

and small and medium banks, Economic Information Daily reported. The crack-down

on illegal financial activities such as illegal fund-raising would continue to

ramp up, 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

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