More financial innovation urged
By Wang Yanlin |
June 26, 2010, Saturday
|
Print Edition
Print Edition
FINANCIAL services offices, which are local government entities that coordinate with the central regulators in governing China's vast financial markets, should expend more efforts to boost financial innovation, participants said at the Lujiazui Forum 2010 yesterday.
"The offices are the eyes of the central regulators," said Wu Xiaoling, vice chairman of the Financial and Economic Committee under the National People's Congress. "They can see which place requires additional governing, and which needs a bit more innovation."
The Shanghai Financial Services Office, established in 2002, was among the first batch of similar entities. By the end of last year, about 26 provinces and municipalities have set up their financial services office to help enhance financial and economic development.
Fang Xinghai, head of the Shanghai office, said yesterday that more innovation is especially needed when new forms of financial institutions and non-conventional business models are mushrooming.
"Small loan companies, local non-state-owned lenders, private equity and venture capital, these need regulation," Fang said. "But the central government has yet to design rules to regulate them. The offices should then coordinate with the central regulators and work with them to ensure such new financial entities can do their job effectively in governing the market."
Luo Guang, director general of the Financial Affairs Office of Chongqing Municipality Government, said his office has practised innovation such as allowing farmers to use their cottages as collateral for loans -- the first in China to do so.
"Chongqing is in west China and has a very different financial situation from Shanghai," Luo said. "We need policy innovation to cater for our special needs, and that's what the offices should communicate and coordinate with the central regulator."
The offices in various cities shoulder different responsibilities. For example, the office in Beijing, being the closest to the central regulators, could be the best choice to implement pilot projects, while the Shanghai office should assist the city to move faster toward its goal of becoming a global financial center, participants suggested.
"The offices are the eyes of the central regulators," said Wu Xiaoling, vice chairman of the Financial and Economic Committee under the National People's Congress. "They can see which place requires additional governing, and which needs a bit more innovation."
The Shanghai Financial Services Office, established in 2002, was among the first batch of similar entities. By the end of last year, about 26 provinces and municipalities have set up their financial services office to help enhance financial and economic development.
Fang Xinghai, head of the Shanghai office, said yesterday that more innovation is especially needed when new forms of financial institutions and non-conventional business models are mushrooming.
"Small loan companies, local non-state-owned lenders, private equity and venture capital, these need regulation," Fang said. "But the central government has yet to design rules to regulate them. The offices should then coordinate with the central regulators and work with them to ensure such new financial entities can do their job effectively in governing the market."
Luo Guang, director general of the Financial Affairs Office of Chongqing Municipality Government, said his office has practised innovation such as allowing farmers to use their cottages as collateral for loans -- the first in China to do so.
"Chongqing is in west China and has a very different financial situation from Shanghai," Luo said. "We need policy innovation to cater for our special needs, and that's what the offices should communicate and coordinate with the central regulator."
The offices in various cities shoulder different responsibilities. For example, the office in Beijing, being the closest to the central regulators, could be the best choice to implement pilot projects, while the Shanghai office should assist the city to move faster toward its goal of becoming a global financial center, participants suggested.
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