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Regulators should control the pace of...>

CHINA PRESS
CHINA PRESS: Regulators should control the pace of the deleveraging process for
state-owned companies and set reasonable targets to avoid risks, the Securities
Daily reported Tuesday, citing analysts. Some SOEs are upstream industrial
companies which suffer from excess production capacity and the burden of
guaranteeing local economic growth and employment. These SOEs cannot survive a
harsh deleveraging campaign considering the large size  of their debt, the
report argued. SOE deleveraging also imposes pressure on banks by increasing
non-performing loans, the report warned. Authorities should take the real
economic situation into account and consider appropriate measures. (Securities
Daily)
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