The key task of China's drive to........>

CHINA PRESS: The key task of China's drive to control financial risks is

applying tougher regulations over the illicit conducts in the banking industry,

said commentary published on the front page of Economic Information Daily. The

author Dong Ximiao is a Renmin University researcher often cited by prominent

state media. 

- Shadow-banking and cross-market financial products should be targeted; 

- Regulators should create further specific rules for regulate banks  

- Regulations must be tough enough to achieve results.

***COMMENT: State press is coordinating with regulators to drum up the

government's crackdown on financial institutions. Investors perceive this as

positive for bank shares evidenced by recent rallies. It is negative for the

property market, non-bank institutions, and may strain liquidity.