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BRIEF-S&P needs to see actual decline in China financial risks, not stabilization, to consider upgrade

stabilization, to consider upgrade@

Sept 22 (Reuters) -

* S&P says will look for actual decline in China's financial risks going forward, not just stabilization, to consider future upgrade

* S&P says increased international use of China's yuan to support China's credit rating in coming years

* S&P says doesn't see direct link of China sovereign rating with movements in China's yuan

* Longer-term trends in China's yuan depends on investor perception of economic performance, pace of capital account liberalization

* China's urbanization spurring mortgage borrowing despite bank restrictions on loans for home purchases

* China downgrade won't have big impact on flows into China's debt markets

* Sovereign wealth funds keen to get bigger investment allocations in China (Reporting by Beijing economics team; Editing by Kim Coghill)