Financial Industry Faring Well in China

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Last updated at: (Beijing Time) Monday, April 15, 2002

Financial Industry Faring Well in China

China is not mired in financial crisis, Dai Xianglong, governor of the People's Bank of China, told the Boao Forum for Asia on Sunday.

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China not mired in financial crisis

China is not mired in financial crisis, Dai Xianglong, governor of the People's Bank of China, told the Boao Forum for Asia on Sunday (April 14).

By the end of this March, the foreign exchange reserve of China has hit US$227.6 and the non-performing loans of the State-owned banks have also gone down by a large margin, Dai said.

Problems to be solved urgently in financial industry

But Dai reminds that China has some problems to be solved urgently in financial industry, including reform of key state-owned finical enterprises and the quality of the assets of state-owned financial firms.

He also admitted that the financing structure in China's financial industry is not in a sound shape.

Dai told that China is going to cut its non-performing loans to 15 percent in five years with a series of steps put into effect. China will further improve the transparency of its financial institutions.

This June will see the four biggest State-owned banks disclose their operation information in the year 2000.

China will gradually relax its control over the capital accounts of its foreign exchange system, Dai revealed. But China still follows a different managerial and supervisory system in regulating its banking and insurance industries and foreign financial institutes must obey this policy in China.

China to strengthen ASEAN+3 cooperation

In addition, China will strengthen and develop the ASEAN Plus Three (ASEAN member states and China, Japan and South Korea) cooperation, Dai said.

China is busy promoting the process of currency swap between China, Japan and other neighboring countries, which involve a hug sum of money and will exert positive effect on Asia's financial market as well as help maintain a stable exchange rate of Asian currencies.

By PD Online Staff Huang Ying

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