China is looking to establish an effective regulatory system for total social financing, an official with the country's central bank said Thursday.

The new bank lending volume does not completely reflect the relationship between finance and the economic conditions and the actual financing volume of the real economy, said Sheng Songcheng, head of the statistics department at the People's Bank of China.

China's total volume for social financing, excluding the new yuan-denominated loans, had been increasing rapidly in recent years, he said in a signed article published on the bank's website.

China's social financing, which covers financing from institutions like banks and security firms, had reached 6.33 trillion yuan (962 billion U.S.dollars), excluding new yuan-denominated loans last year, he added.

The figure is equal to 79.7 percent of new loans in the same period, while in 2002, China's social financing, which excludes bank lending, totaled 16.14 billion yuan, amounting to only 8.7 percent of the new RMB loans in the same period.

Sheng attributed the rapid growth to a development in direct financing, a stronger role of non-bank financial institutions and an increase in off-balance sheet activities in financial institutions.

In the future, China would better regulate total social financing by improving the financial statistical system and enhancing the cooperation between the central bank and other financial supervisors, Sheng said.