The authorities should stabilise........>

CHINA PRESS: The authorities should stabilise market expectations when the

ongoing deleveraging campaign goes deeper and more complicated, Economic

Information Daily reported on their front page on Monday. Corporate deleveraging

needs a benign environment considering firms in debt rely heavily on funding and

relevant guarantees, the report argued. Negative market expectations could

trigger panic in market players and heighten volatility, the report warned.

Comments: Corporate deleveraging is more complicated than financial deleveraging

because their long-term debts heavily depend on external support and funding.

The authorities need to guide market expectations properly, and conduct

deleveraging at a stable pace.