But the CBRC is working on the issue. It has issued a series of regulations on banks' wealth management products, including controlling the total amount, managing the usage of funds and guarding against risks. The next step is to link wealth products to real economy projects, establish a separate account for those products and offer open and transparent information about them.

Small and micro-sized enterprises are a vital part of the real economy, as they offer considerable employment opportunities. But they are also the most vulnerable in a slowing economy.

There are about 51 million small and micro-sized enterprises in China, but only 10 million of them can get bank loans, said Huang Yi, Director of the CBRC's Supervisory Rules and Regulations Department.

"Small and micro-sized enterprises face lots of difficulties in financing, stemming from factors such as a lack of credit history," said Huang, who adds that the new guidelines will make it easier for those businesses to qualify for loans.

Courting private capital

Inviting private capital to the financial sector entails doing three things: encouraging private capital to participate in the restructuring of financial institutions; allowing mature and prudently managed rural banks to adjust the shareholding ratio within a certain degree; and encouraging private capital to establish financial institutions that shoulder responsibilities and risks by themselves, such as private banks, financial lease firms and consumer finance companies, according to the guideline.

During the three decades after China's reform and opening up in the late 1970s, the monopoly of the banking sector by state-owned commercial banks has never been fully broken down. Right now, private capital is searching for investment channels but is stifled in many ways.

"The State Council issued a 36-clause policy that allows private capital to the traditionally monopolized financial sector," said Jia Wolong, Chairman of the China Estate and Merchant Cooperation Association. "With mounting outcry from the general public to allow room for private banks in China, the guideline once again mentioned it. This showed a firm resolution from the Central Government to give the green light to open private banks. In 2013, maybe some private banks will emerge in the financial markets and people are really looking forward to it."

Bi Jiyao, Director of the International Economics Institute of National Development and Reform Commission, hailed the government's efforts to invite private capital into the financial sector.

"China's capital-thirsty small and medium-sized companies will find it easier to access loans once private capital sets up financial institutions."

Email us at: zhouxiaoyan@bjreview.com

The 10 Measures

1. Maintaining a prudent monetary policy and a reasonable money and credit supply to support economic restructuring

2. Using credit flows to guide the country's economic restructuring, supporting emerging strategic industries, the IT industry, the service sector and labor-intensive sectors, and curbing sectors riddled with overcapacity.

3. Integrating financial resources to support the development of small and micro-sized enterprises and increase financial support to technology-oriented and innovation-oriented small and micro-sized businesses

4. Increasing credit support for farmers and agriculture and expanding financial services in rural areas

5. Boosting domestic consumption by improving the environment for consumer finance

6. Supporting companies that are seeking overseas expansion by providing various financing channels

7. Developing a multi-level and mature capital market

8. Expanding the coverage of insurance products in the agricultural sector and for those companies with plans to go global, among others

9. Encouraging private capital to invest in the financial sector, such as private banks, financial lease firms and consumer finance companies

10. Guarding against financial risks, especially those associated with local government debt and property financing