MNI China Press Digest, Jan 28: CSRC, Demand, Shadow Banking

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

     China's capital markets are hopeful to Yi Huiman, the new chairman of China

Securities Regulatory Commission, with expectations Yi will prioritize the

launch of a science and technology innovation board at the Shanghai Stock

Exchange, looking to test a register-based system for listed companies, the

Securities Daily reported Monday.

     China should strive to stabilize employment and wages, as they are the keys

to boosting domestic demand and beating a slowdown, The Paper reported Sunday,

citing Zhang Liqun, researcher at the Macroeconomic Research Department of the

Development Research Center of the State Council. Zhang said to boost effective

demand, the government should actively increase infrastructure investment, such

as improving public services to push people's expectation for better life. And

continuous improvement in livelihoods will lead to greater investment

activities, The Paper reported.

     China's shadow banking is expected to contract at a slower pace this year

than last, as the authorities will adopt "counter-cycle adjustment" and relax

restrictions on some off-balance sheet businesses and entrusted loans, China

Securities Journal reported Monday. Shadow banking has contracted too quickly

and it's weighing on the real economy, so the most urgent task is to stabilize

leverage and slowly develop the shadow banking sector, the newspaper said citing

Lian Ping, chief economist at Bank of Communications.

--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

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