New Stories in Play on CHINA this Morning #CHINA $CAF $FXI $SPY

         China - China might increase interest rates as early as this month, but Beijing will probably not resume yuan appreciation as soon as that (said Zhu Baoliang, chief economist at the State Information Centre (SIC), a think-tank that comes under the National Development and Reform Commission, China's powerful planning agency); "I believe a band widening is possible but another one-off revaluation is unlikely" – Reuters 

         China yuan – pretty quiet overnight; the dollar-yuan parity was pretty flat, dampening expectations about an imminent yuan appreciation – DJ

         China may differentiate capital rules for banks - China's banking regulator is considering setting different capital adequacy requirements for different categories of banks to reflect their risk profiles and business models (Reuters) 

         China may permit yuan increase "fairly soon" former U.S. Treasury Undersecretary Tim Adams – Bloomberg

         China's finance ministry failed to draw enough demand at sales of 273-day and 91-day treasury bills today; The ministry sold 15.81 billion yuan ($2.3 billion) of 273- day bills compared with the planned amount of 20 billion yuan and issued 14.25 billion yuan of the 91-day bills versus the target of 15 billion yuan; demand was tepid amid worries China is removing excess liquidity from the market - Bloomberg

         China's passenger car sales rose 63 percent in March – Bloomberg

         China Property Tax – China has initially passed a plan to impose a property tax on home purchases and may start a trial in the cities of Beijing, Shanghai, Chongqing and Shenzhen, Sina.com reported on its Web site - Bloomberg

         China Researcher Says Uncertain If Property Tax Can Curb Prices. It's uncertain whether a property tax in China can help curb high housing prices and its effect may be limited, Liu Shangxi, deputy director of Research Institute for Fiscal Science at the finance ministry, said in a live webcast on Xinhua News Agency. Bloomberg

         China - May post its first trade deficit in six years tomorrow after a surge in imports of commodities and consumer goods, weakening U.S. arguments that the nation is keeping its currency undervalued to gain an advantage. Bloomberg