MNI China Press Digest, Sept 2:Sino-U.S., Capital Market, Gold

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

on Monday:

     The new wave of tariffs is a turning point in the China-U.S. trade war

because Washington's response will become more rational as it understands the

pain inflicted on American businesses and consumers, according to an editorial

in the Global Times. The Times said the US policy was damaging the US economy in

an attempt to make China surrender on trade issues, but Washington had

underestimated China's resilience.

     China will strengthen capital market reforms to attract more long-term

funds to the Chinese market, according to a statement on the government website.

The statement was made at a meeting held by the Financial Stability and

Development Committee under the State Council, where it was announced that China

would increase the counter-cyclical adjustment of macroeconomic policies and

make greater efforts to improve the transmission of monetary policy. China would

also better integrate fiscal policy with monetary and financial policies, the

statement said.

     The slowdown in the global economy and expectations of monetary easing by

central banks are providing support for the gold price at the US$1500 per ounce

level, according to the China Securities Journal on Monday. The Journal says the

strong U.S. dollar and U.S. stocks are also affecting the upward movement of

gold and silver, and that the future trend is dependent on interest rate cuts by

the U.S. Federal Reserve.

--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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