MNI China Press Digest June 8: ZTE, Bank Probe, Local Bonds

     BEIJING (MNI) - The following lists highlights from the Chinese press for

Monday:

     The Chinese government's involvement helped the decision by the U.S.

Department of Commerce to lift a ban on ZTE, Xinhua News Agency said. The

government stepped in to help save thousands of jobs in ZTE and Chinese

companies that do business with it, but the government will not help companies

every time when they are in trouble, Xinhua said. Chinese companies need to obey

local laws and regulations when investing abroad, Xinhua said. ZTE is required

to change its management structure and accept supervision from the U.S. under

the agreement with the U.S. government, Xinhua said.

     Chinese regulators are expected to slap some banks with large fines after

completing the first half of a nationwide probe on selected banks by June 20,

Securities Times reported. Regulators target mismanagement, businesses of shadow

banking and cross-market financial products, operation risks and illegal

practices harming consumers, the report said. More banks may be under scrutiny

in the second half, the newspaper said, citing banking and regulatory sources.

     Issuance of local government bonds accelerated in early June, China

Securities Journal reported. Since local governments were allowed to issued new

bonds on May 29, CNY100 billion LGB were issued as of June 6, the newspaper

said, citing data from Wind Information. Most bonds were issued by northeastern,

central and western regions due to their greater needs for financing

infrastructure building, the newspaper said, citing Qiao Baoyun, a professor of

Central University of Finance and Economics.

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

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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