Wenzhou unveils financial reform details (3)

However, there is no major breakthrough on whether to allow the establishment of private banks and more flexible interest rates. Short of these, he said, "our financial reform still seems to have a long way to go".

Wang Jianye, chief economist at the Export-Import Bank of China, said new rules do show major progress by putting the private lending in the spotlight.

But Wang said that the reform has still not fundamentally transformed the local financial system.

Unless that is done, there will not be an effective solution to the problem of rampant underground lending, Wang said.

Wang Xiaotian in Beijing contributed to this story.

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