UPDATE 1-PRESS DIGEST - China - June 24
(Adds items)
BEIJING/SHANGHAI, June 24 (Reuters) - Chinese newspapers available in Beijing and Shanghai carried the following stories on Wednesday. Reuters has not checked the stories and does not vouch for their accuracy.
SHANGHAI SECURITIES NEWS
-- A commentary said the central bank is unlikely to reduce the ratio of bank reserve requirements as liquidity in China's interbank market is still abundant despite a drain due to stock initial public offerings. Rumours of such a reduction caused steep domestic stock market fluctuations on Tuesday.
-- A total of 600 billion listed firm's shares owned by their state-run parents will be open for free trade in the second half of this year after lock-up periods, adding huge supply to the stock market.
CHINA SECURITIES JOURNAL
-- A commentary says China should not turn to a tightening stance in its monetary policy as excessive inventories and weak demand will linger despite improvements in the overall economy.
SECURITIES TIMES
-- The 100-plus securities mutual funds in China have distributed more than 10 billion yuan ($1.5 billion) in cash dividend so far this year as a nearly 60-percent jump in the domestic stock market this year boosts the funds' performance.
-- The government's announcement this week to cut or cancel export taxes on some steel products should have limited impact on China's steel industry partly because the cuts will not be enough to cover a spread between the domestic and global prices.
CHINA BUSINESS NEWS
-- A commentary says loosening restrictions on foreigners buying Chinese property may cause a loss of China's national wealth. Local media has reported that Beijing is considering the move, though the government has not yet confirmed the reports.
FINANCIAL NEWS
-- The Ministry of Land and Resources said more land has been approved for use in construction projects. The additional area approved in the first five months totals 3.09 million mu (206,000 hectares) or a rise of 40 percent over the same period last year.
-- China's reduction of export taxes this week were aimed at helping the economy recover, but weak overseas demand may still pose problems.
CHINA DAILY (www.chinadaily.com.cn)
-- The country's top auditor said three major Chinese banks -- the Industrial and Commercial Bank of China (601398.SS), China Construction Bank (601939.SS) and China CITIC Bank -- were found to have lending irregularities but added they would not impact their financial results.
-- China Telecom will build an undersea cable between mainland China and Taiwan, increasing tenfold the speed of information exchange.
-- Beijing will tighten security until October when the country will cerebrate the 60th anniversary of the founding of the People's Republic of China.
PEOPLE'S DAILY
-- The Guangxi region has begun construction of seven railway and highway projects involving a total investment of 50 billion yuan.
-- China confirmed 49 new A/H1N1 flu cases, bringing the total number of cases in the country to 490 since the beginning of the global outbreak. ($1=6.83 Yuan)
