The International Monetary Fund's warning.....>

CHINA: The International Monetary Fund's warning about increased financial

system risks in its latest Financial System Stability Assessment (FSSA) of China

did not reflect recent developments in the Chinese financial system in a

comprehensive way, the People's Bank of China said Thursday. Chinese banks have

strengthened their efforts to deal with non-performing loans, which has helped

them maintain their NPL ratios at low levels, the PBOC said. Corporate profits,

including those at state-owned companies, have improved significantly this year

and local government debts have been matched with the assets that will generate

cash profits in the future, so there is "little room" for NPLs to be

underestimated, the PBOC stressed. The IMF's assessment is objective and

unbiased, and China will refer to the advice while deepening its financial

reforms, the central bank said.