China should stay rational and calm.....>

CHINA PRESS: China should stay rational and calm in the face of credit defaults,

as they are inevitable in the process of deleveraging, China Securities Journal

stated, citing Sheng Songcheng, counsellor to the PBOC. 

  - Bank loans cannot satisfy all the enterprises' demand for financing, and

other channels have not been used efficiently, Sheng said. 

  - Shadow-banking is neutral under this background, as it serves the financial

requirements of the real economy while exposing potential risks, Sheng added,

according to the newspaper. 

  - China should funnel funds into the real economy and enhance the monetary

policy's transmission mechanism to balance preventing financial risks and

serving the real economy, Sheng said.