MNI China Press Digest September 08: NDRC, FX Reserves, Italy

Highlights from Chinese press reports on Friday:

• Authorities have met with futures traders to discuss apparent irregular pricing in the iron ore futures market, according to the Securities Times. The National Development and Reform Commission (NDRC) told traders since mid-august regulators observed the price of futures had increased quickly without any change in fundamental supply or demand and, as a result, faced downward pressure later in the year. Authorities said they would severely crack down on illegal activity, and reminded traders to trade rationally and not engage in excessive speculation. (Source: Securities Times)
• China recorded a 1.38% m/m drop in forex reserves to USD3.2 trillion in August, according to data from the State Administration of Foreign Exchange (SAFE). Officials said reserves decreased due to macroeconomic and monetary-policy expectations from major economies as well as the effects of exchange rate translation and changes in asset prices. In future, SAFE believes China's economy will rebound, conducive to maintain basic stability in the scale of foreign exchange reserves. (Source: Yicai)
• China will work with Italy to deepen trade and investment and enrich bilateral economic and trade cooperation between the two countries, Ministry of Commerce spokesperson He Yadong said at a recent press conference. When asked a question regarding Italy’s potential exit from the Belt and Road Initiative, He said the Italian foreign minister had met with Chinese foreign minister Wang Yi and both sides reached consensus to improve the level of bilateral trade and mutual investment. On Australia, He noted China and Australia should pursue win-win economic and trade cooperation as both economies are highly complementary. (Source: Yicai)