China's regulators need to control......>

CHINA PRESS: China's regulators need to control the strength of deleveraging

while the economy still faces downturn pressures due to the deteriorating real

estate sector and uncertain global market, the People's Daily commented Friday,

citing Lian Ping, the chief economist of Bank of Communications. Regulators

should focus on the structure of leverage, given the high leverage ratio of the

non-financial sector, Lian noted. He also warned that the leverage ratio of

state-owned enterprises -- particularly so-called zombie companies -- is much

higher than private enterprises. Although interbank and off-balance-sheet

transactions in the financial sector have expanded rapidly, the effects of the

government's deleveraging campaign can be seen, as both interbank asset and

liabilities have had clear shrinkage, Lian added. (People's Daily)