Better financial push to help China's west

Chinese central bank promised to take concrete measures to create a favorable financial environment to help bring boom to the west of China.

According to an official with the People's Bank of China, the measures will be focused on the establishment of a good credit system, appropriate monetary policy, financial support to hi-tech projects, financial infrastructure and rural financial mechanism.

The central bank underlines the importance of putting a perfect credit database for individuals and enterprises into place in the west. Pilot projects will be launched and loan guarantee system be improved.

Intensive studies will be done on the monetary policy. The aggregate and structure of loans by lenders will be put under close watch so that proper adjustment will be made to get the policy more effective. Branches of the PBOC and financial institutions are supposed to carry out efficiently the loans for poor students and credit support for re-employment of laid-off workers.

To secure the sustainable development of the region, more capital will be channeled to hi-tech intensive projects with low pollution. Consistent support will be given to Mianyang Science City and Yangling Agricultural Hi-tech Park, as well as the ecological environment.

Small and medium sized enterprises, especially those which offer hi-tech products with promising market prospect and helping to boost the county economy will have wider access to fund. Non-public economy in this region will enjoy customized and diversified professional financial services.

Bolder than ever steps will be taken to improve the financial market infrastructure in the west. Research on cross-region notes exchange center for this region is under way. A better environment for bank cards handling will be in place where a more extensive and more efficient network will be operational. Promotion of high-value payment system (HVPS) and pilot projects for bulk-entry payment system (BEPS) will be pushed forward more aggressively.

Rural financial system will be improved to give more spur to the rural economy in the west. A rural financial market encouraging competition will be nurtured here. There will be a foray into credit organizations which are sponsored by individuals or businesses and grant credit in small sums. Policy-oriented insurance for agriculture will be extended. And commercial insurers are encouraged to offer agricultural insurance service.

This is the fifth year since China launched its resolution on developing its west. Last month both Chinese President Hu Jintao and Premier Wen Jiabao reiterated the central government¡¯s commitment to this decision.

By People's Daily Online