Regulators should control the pace of...>

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)