China Press Digest: Monday, January 15

     BEIJING (MNI) - The following are highlights from the China press for

Monday, January 15:

     China should further widen the global use of the yuan, Financial News

reported, citing Yin Yong, a deputy governor at the People's Bank of China, who

spoke last week in a forum. The yuan's role is underrepresented globally given

China's economic influence, it said. The One Belt One Road initiative also

presents an opportunity for yuan internationalization, the newspaper said. 

     China will continue with a proactive fiscal policy, optimize the structure

for fiscal expenditures, ensure support for key sectors and projects, and

strengthen supervision on local government debt, Shanghai Securities Journal

said in a front-page analysis report, citing the Ministry of Finance. China's

fiscal deficit is expected to be kept around 3% this year with tight money

supply and a neutral monetary policy, the journal cited economists as saying.

China's current proactive fiscal policy will steer away from boosting credit

demand and instead focus on supply-side structural reform, such as ensuring

support for key sectors and projects promoted by the government, it said.

     China will further crack down on illicit practices in the banking industry

this year, the China Banking Regulatory Commission said on its website on

Saturday. Regulators will strictly forbid activities that may harm the economy,

such as those against rules on controlling credit and the property sector, CBRC

said. They will also further regulate shadow banking and cross-market financial

products, including negotiable certificates of deposit, wealth management

products, off-balance-sheet businesses, the commission said.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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