China needs more banking reforms

The government again goes to bat for small businessmen.

Zhou Xiaochuan, Governor of the People’s Bank of China, the central bank, said the banking and finance sector should initiate reforms that serve the real economy so more direct financing can be provided to small- and micro-sized companies and cultural industry enterprises.

He urged bankers to use innovative methods to reform China's capital markets. These reforms should increase the transparency of capital markets, consolidate basic market mechanisms and improve rules concerning IPOs, mergers, acquisitions and de-listings.

Zhou said the central bank will support the development of cross-border exchange-traded fund products, and expand the investment scale for qualified foreign institutional investors (QFIIs) and yuan-based QFIIs.