Chinese Vice Premier Huang Ju said Wednesday that China will continue to earnestly push forward reform and opening up of its financial sector through increasing cooperation and exchanges with international financial circles. 

Huang made the remark in his speech at the opening ceremony of the Beijing International Finance Forum 2004, which had drawn such high-caliber attendees as the heads of China's central bank, security and banking regulators.

Noting that China will continue to pursue financial sector reform in five major aspects, Huang said China will first effectively improve its financial regulatory mechanism through enhancing supervision, straightening out market orders, accelerating the development of the credit rating system and further reducing non-performing assets of banks.

He said China will continue to improve the exchange rate system of renminbi so as to maintain essential stability of the Chinese currency within a reasonable and balanced range.

Second, China will push forward an all-round reform of the financial sector by transforming in the next three years two of the largest state-owned banks, the Bank of China and Construction Bank of China, into share-holding companies that have advanced corporate governance.

Third, China will further open its financial sector to the outside world by expanding geographical and business areas that are open to foreign banks, security and insurance companies.

Huang noted that restrictions on cross-border movement of capital will be gradually relaxed in a selective and well-managed way and free floating of renminbi will be gradually realized under the capital account.

Fourth, China will improve the efficiency of monetary policies by adopting a wide variety of monetary tools to avoid inflation and financial risks.

Fifth, China will encourage the innovation of new financial services and products so as to lift the position of equity market in corporate financing.

The forum was jointly held by the Beijing Municipal Government, People’s Bank of China, the China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission. Under the theme of Corporate Governance and Development of the Financial Industry, the forum attracted 560 attendees from 23 countries and regions around the world.

(Xinhua News Agency May 20, 2004)