The Chinese central government will.....>

CHINA PRESS: The Chinese central government will strengthen supervision of local

governments to ensure they obey their quota limits for debt issuance and better

manage their budgets, the People's Daily, the official Communist Party

newspaper, reported Wednesday, citing an unidentified official at the Ministry

of Finance. The ministry recently made public illegal financing and debt

guarantee activities of local municipalities and counties in Jiangsu and

Guizhou, two of China's most indebted provinces, the newspaper noted. Jiangsu

province punished 57 people responsible and Guizhou 14 and all illegal

activities have been corrected, the ministry told the newspaper. Local officials

will be held accountable for their financing decisions on behalf of the area

under their administration, the MOF official stressed, urging local governments

to speed up their debt-to-bond swaps. (People's Daily)