MNI: China Press Digest, March 22: G20 Meeting, Debt-Equity

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

Thursday:

     The biggest risk for global economic growth is trade protectionism, as was

widely acknowledged by various countries this year, stated Zhou Xiaochaun, head

of China representatives at the G20 meeting, according to Securities Times on

Thursday. Financial or fiscal risks were regarded as the most important risks at

the previous G20 meetings, noted Zhou.

     China will issue new policies for opening its economy and market "with more

strength", said China's Deputy Finance Minister Zhu Guangyao at the G20 meeting

in Buenos Aires, reported Financial News on Thursday. Many uncertainties and

risks exist in the global economy, and G20 countries should be united and

cooperating instead of blaming each other, Zhu said. China is willing to work

with other countries to advance structural reform, contributing to global

growth, Zhu noted.

***COMMENTS: China's Ministry of Foreign Affairs said Wednesday China would be

not be scared and would not hide if "somebody forced us to enter a trade war" -

indicating that while China may be further opening up its market and economy as

the U.S. had requested, the country will not avoid retaliation. Trade tensions

between China and the U.S. have increased, clouding markets. 

     The government has signalled that market-based debt-to-equity swaps will be

sped up and more non-bank financial institutions will be involved, reported

China Securities Journal on Thursday. Entities which implement such swaps and

capital resources will be diversified, said Vice Chairman of CBRC Wang Zhaoxing.

SOEs have already prepared capital for more participation in the market,

according to the SASAC. However, non-bank financial institutions could invest in

zombie companies, leading to a waste and mismatch of resources and harming

China's supply-side structural reform. Economists have suggested establishing a

ban list of zombie companies for such swaps. 

--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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