The People's Bank of China aims to......>

CHINA PRESS: The People's Bank of China aims to tighten controls on negotiable

certificates of deposit (NCDs), the issuance of which has skyrocketed in recent

years, in order to rein in financial risks, Economic Information Daily reported

Monday. The central bank announced Friday that it would include NCDs with

durations of less than one year issued by banks with assets of more than CNY500

million in its quarterly macro-prudential assessment of banks' operating

conditions. The newspaper's front-page report cited Xu Chengyuan, chief analyst

at China Orient Asset Management Co. Ltd, as saying the fact that the PBOC would

add these NCDs to its MPA from the first quarter of 2018 leaves "buffer time"

for the 35 banks whose NCDs fall within the PBOC examination criteria to adjust

and so would avoid major fluctuation in the market. Xu also noted the measure is

only the first step in tightening supervision of  NCDs, with financial

regulators continuing to create and implement new policies based on market

developments. (Economic Information Daily)