Latest News:  
Beijing   Overcast/Sunny    24 / 12 ℃  City Forecast

English>>China Business

China financial reform urged to offset risks


08:12, September 13, 2012

TIANJIN, Sept. 12 (Xinhua) -- China needs more reforms to liberalize interest rates and boost bond selling as the country's financial sector faces risks from piling corporate debt and an economic downswing, officials and economists proposed on Wednesday.

China's company debt remains high and is even increasing in some places, building risks for Chinese banks, a major source of company financing, said Dai Xianglong, chairman of the National Council for Social Security Fund, during the ongoing 2012 Summer Davos Forum in north China's Tianjin.

Chinese enterprises have an overall debt-asset ratio of 105.4 percent, well above the 80-percent alert line and putting them top of a 20-country ranking produced by the Chinese Academy of Social Sciences (CASS), CASS vice president Li Yang said in May.

Li Daokui, director of the Center for China in the World Economy, also sounded an alarm bell for Chinese banks, saying the lenders posed the biggest risk for the country's financial sector.

Chinese banks' total asset value was already more than twice the country's gross domestic output, said Li at a session during the forum.

Banking institutions saw their total asset value reach 122.9 trillion yuan (19.4 trillion U.S. dollars) by the end of July, according to official figures.

Meanwhile, Fang Xinghai, director-general of the Office for Financial Services under the Shanghai municipal government, warned a lot of financial risks may emerge if unforeseen circumstances cause precipitous decline in China's economic growth rate, which will be the greatest risk for the financial sector in the next five years.

【1】 【2】 【3】


Leave your comment0 comments

  1. Name


Selections for you

  1. Ground air defense forces conduct live-fire drill

  2. North Korea’s Kim, wife inspect physical exercise center

  3. Chinese firms ramp up presence in Thailand

  4. Sexy actress Lan Yan's 3-D bikini photos

  5. Vietnam --- traveled through time

  6. Kelly Brook Calendar 2013

Most Popular


  1. What Chinese want to read
  2. It's now time to re-tool the 'world's factory'
  3. Commentary: Asia-Pacific integration
  4. Japan shouldn't underrate Diaoyu issue's severity
  5. Discard illusion of friendly ties with Japan
  6. Commentary: EU needs to think big, like APEC
  7. Green economy should not be used as political card
  8. Hongkongers remain confused over identity
  9. 9/11 attack spurred mistaken wartime strategy
  10. Japan lost at sea among shifting priorities

What's happening in China

Weather hampers quake-relief efforts

  1. Incentives to boost HK, mainland ties
  2. Court accepts bomber family's lawsuit
  3. Hunan denies testing GM food on children
  4. Red Cross gets $6.3m of donations over last 2 yrs
  5. Rail tickets soon can be bought on smartphones

China Features

  1. Kim Jong Un, wife inspect Pyongyang Folk Park
  2. China forecasts weather on Diaoyu Islands
  3. PD: APEC members should promote free trade
  4. Miss World Eco-tourism 2012 crowned in Nanjing
  5. 'Voyager of the Seas' sets sail from Tianjin

PD Online Data

  1. Ministry of Water Resources
  2. Ministry of Railways
  3. People's Bank of China
  4. Ministry of Health
  5. Ministry of Culture