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)