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     BEIJING (MNI) - The following lists highlights from the Chinese press for
Friday:
     The newly established China Banking and Insurance Regulatory Commission
held a meeting on Thursday emphasizing it will orderly help to lower leverage
ratios of companies, break down shadow banking, prevent the property sector from
accumulating bubbles, and help to deal with local government implicit debts,
reported the Securities Times on Friday. The banking and insurance sector will
further reform and open up, the report said.
     Funding costs in property sector through bank loans and bond issuance were
between 4% - 5% in 2017, much lower than funding cost via trusts, which were
mostly between 6% - 10% and even as high as 11%, Securities Daily reported on
Friday, according to the annual reports published by listed property companies.
As the funding channels have been restricted, property companies might seek more
funding from trusts, which will push up their funding costs, the report said.
     The PBOC has drained liquidity via its open market operations for eight
consecutive trading days as of Thursday, causing liquidity to tighten slightly
and non-bank financial institutions to face funding pressures, China Securities
Journal reported on Friday. The report cited sources that said at the root of
this problem are banks, which are facing regulation tests at month-end, and are
becoming unwilling to lend out money to those NBFIs. However, as the total
amount of liquidity is not low and the banks' liquidity conditions remain
stable, it is not likely for liquidity to become much tighter, and liquidity
conditions will improve in the beginning of April, the report said.
--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com
--MNI Singapore Bureau; +65 8233 2326; email: Asia-Editor@marketnews.com
[TOPICS: M$A$$$,M$Q$$$,MBQ$$$]