MNI: China Press Digest, March 14: Banking, Yuan, Regulators

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

Wednesday: 

     Chinese banks are under pressure to raise funds to increase their Core

Capital Adequacy Ratio to meet assessment requirements, China Securities Journal

reported. Banks are turning to the stock market and issuing convertible bonds

for financing. Under strict financial regulations, Chinese banks'

off-balance-sheet businesses are now required to be on normal books. Banks'

negotiable certificates of deposit businesses are also reduced, causing pressure

on banks' balance sheet, according to experts. 

     China should further advance the yuan's use in neighboring countries,

especially those aligned with its One Belt One Road initiative, Financial News

reported citing Yang Xiaoping, head of PBOC Kunming Division. China should

encourage domestic financial institutions to cooperate with banks to boost yuan

flow, News reported citing Yang. It should establish a currency trading center

in Yunnan province, the newspaper said citing Yang.

     China's financial regulation structure will be further improved, Securities

Times said in a commentary. With the merger of the banking and insurance

regulators, current problems regarding the regulation of new emerging areas can

be solved, as there will no longer be an overlap in roles. The PBOC will create

regulations and basic regulation framework, while the China Banking and

Insurance Regulatory Commission will implement related regulations. 

--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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