MNI China Press Digest Mar 4: New Energy, Financial Risk, Bond

The following lists highlights from Chinese press reports on Friday:

• China should make greater efforts to develop new energy, and reduce crude oil import dependency in the next ten years, as the current high oil prices are reshaping the global energy supply chain, the Shanghai Securities News reported citing analysts. China's current dependence on foreign crude oil is still as high as 72%, and such imported inflation will push up the costs for industries including refining, chemical, transportation and logistics, the newspaper said citing Lin Boqiang, a professor at Xiamen University. China may still be less affected than Europe and the U.S. in the face of soaring oil prices, as crude oil accounts for a much lower proportion in its energy structure than that of Europe and the U.S., the newspaper cited Lin as saying.
• China’s top financial regulator said it will take precise measures to firmly guard against systemic risks, even as the foundation of the country’s financial system remains stable, according to an article by the Financial Stability Bureau published on the social media account of the People’s Bank of China. Banking assets account for over 90% of China's total financial assets, with only 316 out of 4398 banks considered high risks in Q4 2021, the article said. The figure had dropped from a peak of 649 in Q3 2019 for six quarters, and is expected to decrease to less than 200 by the end of 2025, the article said.
• China's Financial Futures Exchange should research and design new products such as forward rate futures and treasury bond options, while top financial regulators should form a joint force to promote the listings of more futures and options to better cover the interest rate curve, the China Securities Journal reported citing Jiang Yang, a former vice chairman of the China Securities Regulatory Commission. China should also open treasury bond futures trading to foreign traders in specific varieties to meet their growing demand for managing risks, as foreign investors’ holdings of Chinese bonds have exceeded CNY4 trillion, the newspaper said citing Jiang.