MNI China Press Digest, March 12: SOE Reform, CGB Futures

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

Monday:

     The National People's Congress of China has passed a proposal to amend the

country's constitution, People's Daily reported Monday. The two-term limit on

how long Chinese presidents can serve has been removed. The official Communist

Party newspaper said the constitutional amendment ensures "rejuvenation of

China".

     Risk controls and deleveraging will still be key aspects of China's reform

of state-owned enterprises this year, said Xiao Yaqing, head of the State-Owned

Assets Supervision and Administration Commission of the State Council, over the

weekend, reported Securities Times on Monday. The SASAC will set the warning

level of debt ratios for industrial, non-industrial, and tech and science SOEs,

respectively, at 70%, 75% and 65% - all 5% less than before, Xiao said. Another

key task this year will be to improve management of listed SOEs in order to

increase profitability, and to invest more in these companies, he added. 

     Allowing banks to trade government bond futures can be the first step in

establishing a united government bond market in China, said Li Daokui, former

member of the monetary policy committee at the People's Bank of China, according

to Securities Daily on Monday. This will remove some barriers that separate the

interbank treasury market from the exchange market, as currently banks and

exchange houses cannot participate in transactions in the other's market, Li

said. The move will also make commercial banks more willing to purchase

government bond products as futures can buffer some risks, Li noted. 

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

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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