Road map for financial reform

By Zhou Xiaochuan (China Daily) Updated: 2013-12-11 07:20

4. To develop and standardize the bond market.

Measures will be taken to steadily expand the scale of the domestic bond market, push for the innovation and diversification of financial products and increase the securitization of assets. Explorations will also be made into municipal bonds to improve the financing mechanism for urbanization. At the same time, measures will be taken to develop collective bonds, private bonds and other financing tools to expand enterprises' financing channels and increase the financial support to the real economy.

5. To improve economic compensation mechanism and set up a catastrophe insurance system.

Measures will be taken to push forward the legislation for catastrophe insurance, define the range of catastrophe insurance and set up a government-driven, market-operated and risk-sharing, multi-layer catastrophe insurance system. Government and market roles will be defined to encourage the involvement of commercial insurers in major-disaster insurance.

6. To encourage financial innovation and enrich the financial market strata and products.

An innovation-driven development strategy will be adopted to steadily push forward innovation of the domestic financial market mechanism. There needs to be a long-term innovation mechanism for its organization, products and services. At the same time, risk-prevention measures will be put in place from the very beginning to balance innovation, development and risks and prevent innovations that aim to evade financial oversight and deviate from meeting the demands of the real economy.

7. To strengthen construction of financial infrastructure and ensure safe and efficient operation and stability of the domestic financial market.

Active and prudent measures will be taken to implement the principles of relevant international organizations and strengthen the construction of China's financial infrastructure. Efforts will be made to push forward the building of a trade information reporting system and other facilities to improve systems for the registration of financial products, trusteeship, trading, clearing and settlement. Efforts will also be made to promote more efficient information processing and transmission among these systems and supervisory organs.

(China Daily 12/11/2013 page8)