Business / Financial reform

Quanzhou becomes pilot zone

By Wang Xiaotian (China Daily) Updated: 2012-12-26 09:34

Compared with its two counterparts, the focus of the pilot zone in Quanzhou is emphasizing better use of capital from Taiwan and overseas Chinese communities, said analysts, based on its geographical proximity to the island and its close ties with overseas Chinese communities.

Quanzhou is the hometown of 7.6 million overseas Chinese. Capital from those Chinese and local private capital may amount to 2 trillion yuan ($317 billion), Huang said.

The plan encourages this type of capital to set up lenders, holding shares in local enterprises, and establish investment funds. Special policies facilitating trade, investment and currency exchange will also be announced, it said.

"Regional financial reforms that have been kicked off this year have been widely recognized as touchstones for a nationwide financial overhaul," said Peng Xingyun, a financial researcher at the Chinese Academy of Social Sciences.

"Through such programs the financial supervision responsibilities between central and local governments could be better redefined, and the financing difficulties of small businesses are expected to be alleviated."

Peng said there are some concerns over such pilots, however, fearing the "local to central" reforming path cannot break through the existing regulatory framework, and might trigger a loosening of financial supervision.

The financial reform should pay close attention to pilot programs at a local level, as unbalanced development across China would dampen the determination of top policymakers when they try to implement certain measures nationwide, said central bank Governor Zhou Xiaochuan earlier this month.


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