China will step
up financial reform in the coming five years in a bid to perfect
its market economy, according to a document of the Communist Party
of China (CPC) issued in Beijing Tuesday.
Joint-stock reform of state-owned financial businesses, reform
of policy banks, and the development of medium-sized and small
financial businesses with diverse forms of ownership will be
highlighted, says the proposal of the CPC Central Committee for
formulating the 2006-2010 national program for economic and social
development.
The document urges financial institutions to improve corporate
governance structure, strengthen internal control, and improve the
quality of their assets, profitability and services.
Securities, bond and other forms of capital markets should be
developed together with money, insurance and futures markets. The
financial regulatory system should also be strengthened to cope
with financial risks.
Efforts should be made to steadily promote market-oriented
interest rate reform, improve the managed floating exchange rate
system, and gradually realize the convertibility of the Chinese
currency under capital account.
"We must maintain financial stability and security," says the
proposal.
The documents also calls for efforts to reform the
administrative system, the finance and taxation systems, build a
modern market system, change the growth mode of foreign trade and
promote foreign economic and technological cooperation.
(Xinhua News Agency October 17, 2005)