China should make more efforts to encourage the integration of the
country's monetary, insurance and capital markets, a forum on
finance reform and development has been told.
Zhou Zhengqing, vice director of the Finance and Economy Committee
under the National People's Congress, pointed out that China's
capital market remained in the doldrums last year, which went
against the sustained rapid growth of the nation's gross domestic
products.
He
said the situation severely dampened the enthusiasm of investors
and shook their confidence, as well as harming sustained economic
growth.
Zhou said the top priority at present was to put an end to the
stagnant situation and build up the confidence of the development
of the capital market.
He
said the relevant departments should work together to improve the
investment environment, bring the market into a virtuous circle and
continuously increase the weight of direct financing.
Zhou said direct and indirect financing cannot be separated.
He
pointed out that the monetary, insurance and capital markets had
intrinsic relationships with each other.
The combination of the three would get people investing their
savings, and reduce the risks brought by the closed operation of
the indirect financing and insurance markets.
He
said the government should entice capital from banks and insurance
markets into the capital market and permit securities companies to
issue financial bonds.
(China Daily April 21, 2003)