Premier stresses financial reform to better serve real economy

BEIJING, Oct. 18 -- Chinese Premier Li Keqiang has urged reform and innovation in financial sector in order to better serve the development of real economy.

Speaking at a symposium on the situation of financial institutions and enterprises on Friday, Li said banks and other financial institutions should enhance innovation and prevent risks to provide a sound financial environment for the real economy, according to a statement released on Sunday.

Li exchanged views with representatives of the financial institutions including the Agricultural Development Bank of China, China Construction Bank, Postal Savings Bank of China, and the People's Insurance Company (Group) of China.

While maintaining a prudent monetary policy, the financial industry should carry out more targeted and flexible measures, Li said.

The banking system should ensure appropriate and sufficient money supply, moderately increase the amount of credit and loan, and reduce service charges, to strengthen support for key economic fields and small and micro enterprises.

Li urged stronger credit support for emerging industries such as advanced manufacturing, and the upgrading of traditional industries.

More financial services should be offered to projects of shanty town renovation, water resources and railway construction in less developed central and western regions, Li added.

Market access to the industry should be expanded, especially for medium and small financial institutions and privately-owned banks.

Internet finance should be encouraged to keep an orderly and regulated growth based on the real economy, Li said.

Li urged to enhance the opening-up of the financial industry, such as measures to lower the market entry threshold for foreign capital, and to make good use of free trade zones as a pilot platform for financial opening-up.

The premier also urged greater supervision of financial institutions and activities, with the aim of preventing risks and promoting healthy growth of national economy.