USD/CNH remains content in a tight.......>

CHINA YUAN: USD/CNH remains content in a tight range, with a combination of the

50-DMA (located at CNH6.8979) and psychological resistance (CNH6.9000) capping

for now. There was little in the way of notable reaction to the latest round of

official PMI data. 1-Month vol remains at suppressed levels, with no real

optimism surrounding the latest round of U.S.-China trade talks.

- As highlighted elsewhere, China's Communist Party Politburo left the tone of

China's fiscal & monetary policy unchanged, but more new measures are to be

expected in H219, China Securities Journal said in a post-meeting commentary on

Wednesday. The meeting didn't mention de-leveraging, but instead emphasized that

banks should be guided to increase medium- and long-term financing for the

manufacturing sector and private companies, the newspaper said.

- RTRS have highlighted China is sharpening its scrutiny of small banks'

shareholders amid fears that loans from the lenders to big investors could prove

a weak point in the country's financial system. This comes after an earlier RTRS

sources piece which noted that multiple local PBoC branches have told commercial

banks to increase loans appropriately.