China Plans Measures to Manage Debt Risks and Curb Financial Contagion

China's cabinet calls for curbing contagion risks from debt crises involving developers, local governments
Regulators aim to tackle key risks, restructure small institutions, better monitor banks and local financing vehicles
PBOC governor says policies should be tailored to different cities' market realities, including developer financing
Restructuring of high-risk small and medium banks is planned via mergers and acquisitions
Audit cooperation with U.S. is highlighted as a way to manage external financial risks