Qin Xiao, chairman of the APEC Business Advisory Council (ABAC) called in Shanghai on Monday for accelerating financial reforms in the Asia-Pacific Economic Cooperation (APEC) economies.

Qin told reporters that the ABAC, a private sector arm of APEC, recommends APEC leaders to align with international financial standards, improve corporate governance and further liberalize investment and trade financial services.

On capacity building, Qin suggested domestic bond markets and credible credit rating agencies be developed to improve market mechanism, strengthening risk management hedging mechanisms and wider use of second board market.

To strengthen international and regional architecture, APEC members should participate in financial soundness indicators programs to improve surveillance measures and mitigate the adverse impacts of short-term capital flows and highly-leveraged institutions' activities, he said.

The mission of the ABAC, which was set up in 1996, is to give advice to APEC economic leaders on issues affecting regional business.

The fourth ABAC meeting is scheduled to be held in Shanghai on October 18-21.

(Xinhua News Agency 10/16/2001)