Arab Today, arab today china\s financial reform gains steam
Last Updated : GMT 09:16:34
Arab Today, arab today
Arab Today, arab today

China\'s financial reform gains steam

Arab Today, arab today

Arab Today, arab today China\'s financial reform gains steam

Beijing - XINHUA

With a clearer outline and more concrete steps, China\'s financial reform is gaining traction amid calls to better facilitate the real economy and guard against risks. The city of Yiwu, best known for its wholesale market in east China\'s Zhejiang Province, has joined a list of Chinese cities to carry out special financial reform programs and target innovation in both the financial system and practices, hopefully to boost international trade in the area. The move by Yiwu, following other financial reform pilot zones in Wenzhou, Qianhai and Binhai, chimes with the State Council\'s official approval in late August to build a free trade area (FTA) in Shanghai, the country\'s economic hub. Many believed Shanghai would further unleash the potential of China\'s much-said financial reform, which was also conveyed in Premier Li Keqiang\'s opening speech at the Summer Davos forum last week. In line with the government\'s incremental steps in the past months, Premier Li pledged China would take active yet steady steps to further liberalize interest rates and exchange rates, make the yuan convertible under the capital account, as well as to reform financial institutions, cultivate a multi-layered capital market and strengthen financial supervision. \"Financial reforms in the past few months, including the relaxation of lending rates, were generally carried out in accordance with the reform package Li referred to,\" said Kuang Xianming, head of the economic research center with the China Institute for Reform and Development. Kuang said Li\'s remarks point out that market-oriented reform will still be the core for the next round of financial reform. \"It can be expected that China\'s financial reform may be gaining momentum in the period ahead,\" Kuang said. In July, China began to allow banks to decide their own lending rates, but the deposit rates are still fixed by the central bank. In his speech at Summer Davos, Li also said the country will \"choose an appropriate time\" to introduce the deposit insurance system, which is considered a key precondition for freeing deposit rates, the last and most important step of interest rate liberation. Tan Yaling, president of China Forex Investment Research Institute, said the new leadership\'s decision to accelerate financial reform is positive, but suggested more work needs to be done on the systemic scale rather than on the local level. \"Financial reform should be based on a strong and balanced real economy and requires high professionalism. The influence and feasibility of Yiwu\'s pilot financial reform is still debatable given the quality of the local economy,\" Tan said. She suggested the next round of financial reform should focus on the bigger picture of building a complete and sound financial market, as local reforms will only have limited influence. \"Local reform may be a bell ringer, but if a strong market is not established, it will bring speculative risks in the short-term,\" she warned. Tan\'s warning reflected similar worries over local government debt and potential systemic and regional financial risks the world\'s second-largest economy may face. Premier Li reiterated in the forum that financial system reform should be conducive to the real economy and economic restructuring, as well as benefit the livelihoods of more people. According to Tan, the scheme to build the Shanghai FTA, with more details yet to be announced, should also start with how to boost trade and industries, rather than a mere discussion of financial tools and services. \"Only when trade flourishes, other plans can unfold,\" Tan said. China\'s foreign trade unexpectedly slowed in June but has recovered for two straight months due to improving global demand and a firming domestic economy, with the trade surplus widening 8.4 percent year on year to 28.52 billion U.S. dollars in August. Kuang Xianming said financial reform will bring more good to the real economy as it may force monopoly industries to retool themselves. After freeing up the lending rates, banks will try to woo quality clients to rebalance credit structure. With credit resources no longer centralized in monopoly industries, the industries themselves may be driven out of the comfort zone for a reform, said Kuang.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china\s financial reform gains steam Arab Today, arab today china\s financial reform gains steam

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 06:01 2017 Sunday ,26 February

BRIC funds see inflows amid emerging equity boom

GMT 05:43 2017 Sunday ,26 February

Al-Gergawi quits Dubai Holding to focus on govt role

GMT 05:14 2017 Sunday ,26 February

Oil prices to average $50-$70 through 2022

GMT 14:44 2017 Saturday ,25 February

China overtakes US as Germany’s top trade partner

GMT 05:53 2017 Saturday ,25 February

Global sovereign debt to hit new all-time high

GMT 05:17 2017 Saturday ,25 February

Oil world cautious on Trump’s next move

GMT 09:59 2017 Friday ,24 February

Baidu revenue slips anew amid ad clampdown
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Reasons for the delay 'On the Stairs of Servants'

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday