MNI China Press Digest: Yuan Counter Factor, SOEs, Consumption

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

Wednesday:

     The application of the countercyclical factor by regulators in managing the

yuan's exchange rate is to control one-way bets and not meant to reverse the

direction of the currency's decline, Shanghai Securities News said in an

analysis, citing interviews of analysts. The dollar's strength is one reason

behind the yuan's "phasic" weakness, the newspaper said. Offshore yuan (CNH) may

rebound given the tightening of liquidity by policymakers, which serves to fire

a warning to investors shorting the currency, the newspaper said.

     China's state-owned enterprises (SOEs) are accelerating restructuring and

mergers following unprecedented executive shuffling this year, the Economic

Information Daily reported. At least 42 SOEs have made 176 personnel changes

this year, the newspaper said citing government announcements. While personnel

changes may be followed by further consolidations, frequent leadership changes

may also delay implementation of reform, the newspaper said citing Liu Xingguo,

a researcher at China Enterprise Federation. Automobile, telecommunication,

chemical and ship-building are among those industries where consolidations of

SOEs may intensify, the newspaper said. 

     China plans to boost the consumption of high-end information-based consumer

products, including smart home appliances, wearables and intelligence-based

medical and transportation, the Economic Information Daily said citing the

Ministry of Industry and Information Technology. The consumption of information

technology rose 15% in the first half of this year to CNY2.3 trillion, more than

doubled China's GDP rate, and will remain a driver for growth given its

potential, the newspaper said. 

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com