MNI China Press Digest, Sept 3: China-U.S., Bonds, Real Estate

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

on Tuesday:

     China had urged the U.S. to abide by the earlier consensus between the two

countries on trade if it wanted a win-win agreement with China, People's Daily

said in a commentary. The U.S.-China trade talks need equality and mutual

respect and cannot progress without trust, the newspaper said.

     The market has higher expectations on the expansion on local government

bond issuance after a meeting of a key government committee, according to a

report in the PBOC-run Financial News. The newspaper reported that the meeting

of the Financial Stability and Development Committee sent a signal that the

authorities would use fiscal policy and increase support for special bond

issuance. There is a remaining balance of CNY1.2 trillion in special bonds from

previous years that could be used, according to the report.

     The China Banking and Insurance Regulatory Commission is planning a special

inspection of real estate loan business in 32 cities, Economic Daily reported.

The inspection will cover land reserve loans, development loans, individual

housing mortgages, and tenant lease loans. The inspection will have a particular

focus on checking if banks have used off-balance sheet and interbank channels to

lend to the real estate market, the report 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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