Steadily reducing banks' reliance on....>

CHINA PRESS: Steadily reducing banks' reliance on local-government bond sales is

important, the Securities Times said Friday in a front-page commentary. Since

July China has been experimenting with allowing individual investors to purchase

local-government bonds directly -- this can disperse risks for the banking

system. However, the main buyers of these bonds are still commercial banks --

which means the capital source is still banks. A better system to meet the

capital needs of local governments is important to China's future economic

growth and stability, the newspaper said. It also recommended increasing

transparency of local-government financing and making full use of market forces.

(The Securities Times)