Bank transactions to add leverage and...>

CHINA PRESS: Bank transactions to add leverage and shun regulation must be dealt

with in a bid to clean up the mess in interbank market, the People's Daily

commented Monday. Although the normal functioning of the financial sector is

recovering as regulators enhance their controls, it is still possible that

financial entities will resume irregular transactions, the commentary noted. In

the near future, the priority of the deleveraging campaign will target

state-owned companies, the commentary said, adding risks in local government

debt should also be resolved in a positive way. The deleveraging in the

financial sector should support the real economy, but it must be an orderly and

gradual process with a precondition of maintaining market stability. (People's

Daily)