The tighter bias in the People's Bank...>

CHINA PRESS: The tighter bias in the People's Bank of China's monetary policy

will last for a few years and the deleveraging process for state-owned companies

will need another three to five years, Li Yang, a senior researcher with the

Chinese Academy of Social Science and advisor to top leaders, told the China

Securities Journal in an interview published Friday. Risk controls will focus on

deleveraging, particularly among SOEs, through managing non-performing assets,

reducing excess inventories and eliminating zombie companies, Li said. It will

be a challenge to deal with the downward pressure deleveraging will put on

economic stability. The local government debt risk has been accumulating since

2015, Li noted, adding that as of the end of 2016, combined central and local

government debt was equal to 22.7% to 28% of GDP. China needs to enhance

comprehensive reforms to reduce local governments' intention of increase debt,

Li suggested.(China Securities Journal)