Report urges fast reform of financial system

Non-bank lenders to be allowed to compete with traditional players

China's economic rebalancing will rely on market-oriented vacuum extruder and in-depth reform of its financial systems to attract investment into more efficient private sectors, according to a report.

The National School of Development at Peking University said on Thursday legalizing and regulating a credit scheme outside the main banking system, as well as clay brick making machine liberalizing interest rate fluctuation should be at the core of any reform,clay brick machine.

"The main orientation should be encouraging non-bank lending businesses to compete with traditional banks, to provide market-based capital pricing for more small and medium-sized enterprises," its report said.

"A market-oriented interest rate regime is seen as a premise to free cross-border hollow brick making machine capital flows, and the relocation of concrete brick machine resources between industrial sectors and service businesses."

In addition, a more competitive credit system will curb any exacerbation of non-performing loans, it said.

Zhu Haibin, the chief Chinese cement block machine economist with JPMorgan Chase, wrote in a recent research note that rapid expansion of financing outside the banking system has raised market concern since the fourth quarter of last year, fueling a faster growth rate in the all-system financing aggregate than for bank loans.

He said the recently released policy to control "non-standard" credit products concrete block machine was likely to reduce potential default risks while moderating economic recovery.

Song Ligang, a senior researcher with Australian National University, said that financing provided by big banks to State-owned enterprises has fostered excessive production hollow block machine capacity and intensified the imbalance of China's economic development,clay brick machine.

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