MNI China Press Digest, Feb 28: PBOC, Capital Market, Risks

     BEIJING (MNI) - The following lists highlights from Thursday's China press:

     The PBOC will strengthen real-time monitoring of the stock, bond and

foreign exchange markets as it looks to limit systemic financial risk, according

to reports. Financial News today quoted Wang Jingwu, head of the Financial

Stability Bureau at the PBOC, who warned of the potential impact of high levels

of local government debt and increasing bond defaults on the financial system.

Wang also cited the real estate market as sector which posed financial risks.

     The new chairman of the China Securities Regulatory Commission has

indicated his focus is on capital market reform in a "market based direction",

according to a front-page commentary in the Securities Daily today. In his first

press conference, the newly appointed Yi Huiman was reported as endorsing

"marketisation" of capital markets to drive reforms.

     The PBOC has outlined its priorities in tackling China's systemic financial

risks, sayings its focus is on shadow banking and asset management by financial

institutions. In a statement posted to the PBOC website on Wednesday, the

central bank also said it would improve its policy tools for risk prevention.

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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