Issuance of negotiable certificates.....>

CHINA PRESS: Issuance of negotiable certificates of deposit (NCDs) contracted

sharply in August because of tightened regulation, the Economic Information

Daily reported Thursday. As of Aug. 21, total issuance of NCDs stood at CNY1.09

trillion, down from CNY2 trillion in June and CNY1.5 trillion in July. Last

week, issuance was less than maturing NCDs for the first time since July,

resulting in a negative net funding volume of CNY42.13 billion, the newspaper

said. The increase in money market rates resulting from the government's

deleveraging campaign is the main reason for the contraction, the report argued.

Plus, regulators are expected to consider rules for money market funds that

would limit their ability to buy NCDs issued by low-rated institutions, which

would further reduce NCD issuance, the report warned. (Economic Information

Daily)