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

MNI (Beijing)
     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

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