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Financial Reform Seeks Breakthrough
Policymakers hope new reforms will revitalize the slowing Chinese economy. Due to the consideration of economic security and stability, the financial reform in Wenzhou could be seen as a trial
Breaking Up Banking Monopolies

Today, small and medium-sized enterprises (SMEs) make up more than 90 percent of all enterprises in China and contribute more than 60 percent of the GDP. Development of SMEs needs financial support, but financing difficulties have long been an unsolved problem. Current financial reforms will legalize private lending, which could rescue these SMEs

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Legitimizing Private Lending
China unveils a pilot program for private financing
A Helping Hand
Soothing the financial woes for smaller businesses in China proves challenging when banks refuse to loan
- Financing Openly
Members of China's advisory body offer suggestions to resolve financing difficulties for small enterprises
- Nod of Approval for Black Lending
Private lending, once obscure and operated underground, gets an unofficial go-ahead from the Central Government
- Giving Private Investment More Room
An effective implementation mechanism for encouraging private investment is badly needed in China
- Wenzhou's Case of the Disappearing Bosses
The boomtown of private economy has been plagued by company owners running away to avoid debt
Chinese Structure of Banking Sector

Banks in China are divided into state-owned banks, foreign-funded banks, joint-stock banks and private financial institutions. Among the total assets of domestic banks, state-owned banks account for 90 percent, joint-stock banks 7 percent, foreign-funded banks 2 percent and private financial institutions less than 1 percent.

(Source: China Banking Regulatory Commission)

Highlights of Financial Reform in Wenzhou
- Regulate development of private financing and set up filing and monitoring mechanisms for private financing

- Support private capital to participate in local financial reforms and launch or participate in the establishment of village banks, credit companies and rural cooperatives

- Develop special asset management institutions, and guide private capital to set up venture capital, equity investment companies and related investment management institutions

- Research to carry out pilot projects on individual direct investment and explore to establish convenient direct investment channels

- Carry out stock transfer and property right transactions of technologies and culture by non-listed companies

- Actively develop bond products of various types, and promote more enterprises, especially micro and small ones, to establish and improve the re-guarantee system
Highlights of Financial Reform in Shenzhen
- Push forward pilot of trans-border renminbi loans between Shenzhen and Hong Kong

- Establish Qianhai Equity Exchange

- Set up national-level venture capital mother fund for emerging strategic industries

- Establish a uniform management institution for capital of multinational corporations
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- Economic Growth Cooling Down
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