The Ministry of Finance recently........>

CHINA PRESS: The Ministry of Finance recently published a notification to limit

ways for financial institutions to provide funding to local governments, said

Shanghai Securities News on Monday. The notification allows financial

institutions to only buy bonds issued by local governments. It also bans all

funding channels which will increase a local government's implicit payback

responsibilities - for example, issuing loans to local government funding

vehicles, the report said, citing Sun Binbin, analyst at Tianfeng Securities.

The notification also emphasises that financial institutions should not cut

their loans to existing projects, and the settlement of outstanding debts needs

to be orderly, the report said.