MNI China Press Digest Dec 14:Bond Rating, Antitrust, Ideology

The following lists highlights from Chinese press reports on Monday:

The PBOC will strive to raise the standard of rating agencies in the domestic bond market and toughen its supervision, Xinhua News Agency reported on Sunday citing Deputy Governor Pan Gongsheng. Credit rating standards need improvement as too many bonds were overrated and there is a lack of differentiation that accurately reflects the underlying risks, Pan said. MNI notes that Pan spoke after defaults by state-owned companies, perceived as low-risk given government ownership, have roiled China's financial markets in the last month.

A key task for China's leadership is to toughen rules against anti-trust practices to curtail rampant expansion and prevent financial risks, the China Securities Journal wrote in an editorial following a Dec. 11 Politburo meeting. Fintech activities need to be included into the regulatory system as soon as possible as activity in this sector can suppress competition due to data and capital advantages, the Journal said. Operations spanning different industries can introduce complex and contagious risks, and regulators must guide capital and conduct financial risk prevention, the newspaper wrote.

China should downplay ideological differences with western powers and not fall into the trap laid by the U.S., which intends to protect its hegemony, said Global Times in an editorial. China should not escalate value-based frictions with other countries but instead focus on economic interests, the newspaper said.