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GREATER CHINA
* The municipal government of the Chinese city of Changde denied reports that it has ordered domestic lenders to defer the payments of local government bonds, Sina Finance reported. Changde authorities refuted media reports saying that banks refusing to comply with the alleged order would be subject to disciplinary action by the country's Communist Party.
* Xu Zhong, director of the People's Bank of China's research bureau, said authorities should promote fiscal and taxation reforms to reduce the risks of high leveraging, Reuters reported. Xu also discouraged the excessive reliance on monetary policy to ensure price stability.
* The People's Bank of China will require payment firms to deposit 100% of their reserves of client funds with a centralized custodian by Jan. 14, 2019, Reuters reported. Such firms are required to gradually increase their reserve rate each month starting July 9.
* The China Banking and Insurance Regulatory Commission is encouraging financial asset investment companies to make full use of various market-oriented methods to establish debt-to-equity swap businesses, Reuters reported. The regulator also urged domestic commercial banks to become shareholders of financial asset investment firms.
JAPAN AND KOREA
* The Bank of Japan is expected to lower its price growth forecast for fiscal 2019 in late July to about 1.5% on the back of weak inflation in recent months, Tokyo's The Nikkei reported.
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