Researches are made of local market for financing

Government official said on 6 that, the central bank and the financial minister have been engaged to make research on local market for financing, in order to regulate local financial performance for better loan management.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Director of the National Development and Reform Commission, Zhang Ping noted at when attending the Two Conference”, the governments at all levels should determine their own financing targets rationally, in line with the real economic growth.  “Never scramble to seek for financing, and expand it with no limit,” said he. The NDRC would make control of rational scale of loans and investment, and would make up further measures to regulate financing business by local government, the work being on the way ruled by the Ministry of Finance. The relative contents are included in the report submitted on Friday to the current NPC by the NDRC, urging on debt management and intended loan purpose.

Financial minister Xie Xuren also said it has seen for years far more growth of local financing, but with relaxed supervision over it, it ought to get it under control through fiscal analyzing and by fiscal capacity. “He said, “The state of present financing should be checked and verified in different facts and we will ensure the companies along the right lines.”

Shanghai banking regulator Yan Qingmin released a few days before, up to last year-end, the loan balance of the financing institutions remained at about 6 trillion yuan, and related regulations could be issued before the end of this month.