A "significant" increase in "the proportion of direct financing" may be written into the draft of the 12th Five-Year Plan (2011-2015), as one of the targets for developing China's capital market in the next five years, Shanghai Securities News reported Tuesday, citing experts as saying.
Experts said unlike the 11th Five-Year Plan, the part about the capital market in the 12th Five-Year Plan will explain the deepening reform of factor markets rather than deepening the reform of the financial system. It shows the society has a thorough understanding of the functions and position of the capital market, according to the report.
China's factor market is relatively far behind, experts said. The marketization of important factors like capital, land, technology and information are still at a low level. Only making breakthroughs in the development of the factor market could realize the strategic target of perfecting a socialist market system and an all around prosperous society, the newspaper quoted the experts as saying.
