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News Summary: China warns on financial risks

The Associated Press

THE NEWS: President Xi Jinping calls for authorities to curb financial risks as concerns mount in China about rising debts owed by companies and local governments. The official Xinhua News Agency gives no details of what steps he told regulators to take.

THE BACKGROUND: The rare public comments about the economy by China's president and Communist Party leader come as Beijing faces pressure to reverse a downturn that depressed growth to a two-decade low in the latest quarter.

RECENT DEVELOPMENTS: The government announced a nationwide audit of local government debts and a tax cut for small businesses last week, but has resisted calls for a more aggressive stimulus.