The financing difficulties faced by.....>

CHINA PRESS: The financing difficulties faced by private-sector enterprises are

tied to the failure of financial policies and financial restructuring. Policy

makers wrongly equate resolving financial risks to de-leveraging, instead of

more precisely cleaning up bad debts while increasing 'good' bonds and lending,

The Beijing News said Thursday, citing Li Dao Kui, an economist who is a former

official at the PBOC.

- Instead of hoping to lower the overall leverage ratio, the government should

set a clear goal for banks, for example to disposal of NPLs in three years, the

paper reported citing Li.

- A further reason private-sector companies find it difficult to borrow from

banks is that a large volume of bank loans flow to local governments for

infrastructure construction, Li added.

(Link to the story: https://bit.ly/2R3ZW1I)