MNI China Press Digest, March 13: Regulatory Reform, Debt Swap

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

Tuesday:

     China will merge the country's banking and insurance regulators to form a

new body named China Banking and Insurance Regulatory Commission, Caixin

reported citing a State Council document. The People's Bank of China will be

tasked with setting regulations on banking and insurance, and will create the

basic supervision structure of the new commission, according to Caixin.

     China will accelerate market-based debt-to-equity swaps, China Securities

Journal reported, citing China Banking Regulatory Commission (CBRC) Chairman

Wang Zhaoxing. Private financial institutions and capital will be allowed to

participate in these swaps, the newspaper reported citing Wang. 

China needs to properly execute the reform of the Communist Party and various

government structures, Liu He, director of Office of the Central Leading Group

of Financial and Economic and Affairs, wrote in article published in People's

Daily. The reform shall also clarify differences between the responsibilities of

local and the central governments, he said. 

***Comment: Liu is tipped to become a vice premier. The publication of Liu's

comment on this crucial issue is a further signal of his accession. 

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

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

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

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