MNI China Press Digest, Sept 6: China-U.S., Financial, LGBs

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

on Friday:

     The restarting of trade talks is the best way forward for both China and

the U.S., Xinhua News Agency said in a commentary. China sincerely wants to

continue negotiations with the U.S., but its approach is principled and there is

a bottom line to its negotiating position. The U.S. must abide by the consensus

reached by the leaders of the two countries at summits in Japan and Argentina

and approach negotiations with mutual respect. Any resumption in trade talks

should focus on achieving tangible results, the Xinhua commentary said.

     Chinese Vice Premier Liu He has urged financial regulators to increase

counter-cyclical adjustment, smoothen the transmission mechanism for monetary

policy and strengthen the coordination of financial and fiscal policies,

according to a statement on the government website. Reporting Liu's comments

from a meeting on Thursday, the statement said regulators should support banks

with innovative tools for capital supplements and guide banks to increase medium

and long-term support for manufacturing and private enterprises.

     China is expected to allow over CNY1.8 trillion of next year's quota of

local government bonds to be issued in advance, Securities Daily reported.

Citing Liu Chenhan, chief analyst at Northeast Securities, the report said the

total quota of local government bonds next year would be around CNY3.4 trillion,

of which 20% can be used for capital projects which could then leverage CNY2

trillion in project finance.

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

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

[TOPICS: M$A$$$,M$Q$$$,MI$$$$]