MNI China Press Digest, Sept 26: Yuan, A-shares, Pollution Cut

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

Wednesday:

     The yuan is not likely to drop as significantly against the dollar as it

did Tuesday, when it experienced the biggest fall in two months, China

Securities Journal reported. Counter-cyclical factors are helping to reduce yuan

fluctuations as the central parity on Tuesday was not as weak as the market

expected, the newspaper said. As authorities are strengthening their macro

prudential management, the yuan is expected not to fluctuate to a large degree,

the newspaper said. Tuesday's drop was due to an increasing need for dollars

amid the holiday season, when much more Chinese plan to travel abroad, the

newspaper said, adding that the lack of reflection of yuan trading price on

Friday night due to the holiday and the rise of the dollar also contributed to

the drop. However, market insiders cited by the newspaper have said such factors

are not sustainable, and therefore further depreciation of the yuan is unlikely.

     A-shares may see a turning point soon as various factors could facilitate

its rebound, Financial News reported. FTSE Russell is considering listing

A-shares in its indexes, and more investors investing in A-shares would allow

around USD12 to USD15 billion to flow into the market, the newspaper said,

citing analysts including Zhang Xia from China Merchants Securities. Despite the

negative effects of the China-U.S. trade war, tight financial regulation and

credit crisis of some Chinese companies, A-shares are expected to rebound as

China's economic growth will remain stable, with the government's efforts to

stabilise it, the newspaper said.

     Industrial production cannot be abruptly stopped or limited without careful

consideration, said Xu Qin, the head of Hebei Province, according to Hebei

Daily. Hebei should look into using clean energy for heat, and should prioritise

heating for citizens, the newspaper said. This year, as the first year in

China's three-year action plan to reduce air pollution, the key is to carry out

various pollution control measures in fall and winter, with specific tasks for

cities and counties, Xu asserted, according to the Daily.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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