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A top official of the China Banking.....>

CHINA PRESS
CHINA PRESS: A top official of the China Banking Regulatory Commission has
highlighted the risks posed by the accumulation of debt by local governments,
the Financial News, a newspaper of the People's Bank of China, reported
Wednesday on its website. The official, Yu Xuejun, who heads the commission's
regulatory board for key state-owned enterprises, told a forum in Beijing on
Wednesday that the continued swelling of the debt was a lingering problem that
could frustrate efforts to prevent financial risks. Increased local government
debt also makes it difficult for financial institutions to manage liquidity
conditions, Yu said. China's entire financial system needs to be more
market-based and internationalized to enhance efficiency, Yu argued, and
regulators need to clarify their supervision goals and actions so that
coordination is better and all the risks in the financial sector are addressed.
(Financial News)

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