MNI China Press Digest: Yuan, SOE Debt, Chairman Xi

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

on Friday:

     The yuan may rebound to about 6.75 in the fourth quarter as policymakers

signaled preference for currency stability and emphasized macro-prudential

controls, cross-border capital regulations and prevention of unorderly flow of

cross-border funds, Securities Daily said in an analysis citing Wang Youxin, a

researcher at the Bank of China International. The yuan rose 58 basis points

against the dollar on Thursday largely on the weakened dollar index, while the

reported resumption of trade talks between China and U.S. raised optimism of

resolving the trade row between the two largest economies, the newspaper said

citing Wang. While the Fed raising rates may still pressure the yuan in

September, the prospect of increased inter-party conflicts in the U.S. during

the midterm elections may weaken the dollar and boost the yuan, the newspaper

said. 

     Debt levels of China's state-owned companies (SOEs) are still high and need

to be further reduced, Economic Information Daily reported Friday citing Zhou

Jianqi, a researcher at the Development Research Center of the State Council.

Zhou commented on a circular by the cabinet that asked to further reduce SOEs'

debt levels by average 2 percentage points by the end of 2020. At the end of

July, SOEs debt-to-asset ratio was 64.93%, only a slight 0.8 percentage point

decline from 65.73% a year ago, the newspaper said citing data by the Ministry

of Finance. The circular also called for closer monitoring of companies, and

will restrict their investment and spending, the daily said. 

     The People's Daily, the official newspaper of the Communist Party of China,

portrayed Chairman Xi Jinping as a champion for reform in what the newspaper

described as the first of a series of articles advocating the so-called "Xi's

Thought on Socialism with Chinese Characteristics for a New Era." The article

recounted Xi's previous visit to a statue of former paramount leader Deng

Xiaoping in Shenzhen in 2012 and described Xi as a leader of the people.

***China seems to be stepping for another round of pro-Xi propaganda. Xi has

reportedly drawn criticisms for his tightened grip on power and China's

premature assertions of power internationally.  

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