Expo Special: Regulatory officials: More support for Central China

China's financial sector should provide more support for the development of the central region, said regulatory officials on Monday.

"We will provide support for the development of sectors such as new energy, advanced manufacturing, service as well as small and medium-sized companies in the region," said Yan Qingmin, assistant to chairman of the China Banking Regulatory Commission.

Yan made the remarks at a financial development forum at the Expo Central China 2011 in Taiyuan, capital city of Shanxi province.

The Central China region consists of six provinces in the country's hinterland - Shanxi, Anhui, Jiangxi, Henan, Hubei and Hunan.

With a total area of 1.03 million square kilometers and a population of 370 million, the region is rich in natural resources and low-cost laborers.

Over the recent years, rising labor costs, appreciation of the yuan and several other factors have put big pressure on the manufacturing sector in China's coastal regions.

As a result, manufacturing businesses with advanced technologies in the east are encouraged to move to west and central China. The industrial relocation is also part of the Chinese government's plan to modernize the country's manufacturing sector.

"The banking system will transform its development model to accelerate the industrial relocation to the central China region," Yan added.

A better-developed financial sector can spur regional economic development, by providing financial support in optimizing local industrial structure and technological innovation, said Liu Xinhua, vice-chairman of the China Securities Regulatory Commission (CSRC).

So far, a total of 360 listed companies are in the central provinces, according to data from CSRC. Their market capitalization stood at 2.89 trillion yuan ($452 billion), accounting for 16 percent of the country's total figure.

In Shanxi province alone, the market capitalization of the listed companies amounted to 5.92 billion yuan, ranking the 10th in the nation, according to official data.

"We will continue improving the market system and enhancing the development of financial sector in the Central China region," Liu added.

Long Yongtu, former deputy minister of commerce and chief negotiator for China's entry to the World Trade Organization, said a more opened financial industry will help transform China's economic growth into a model driven by domestic demand.

"A mature financial market will not only boost economic growth, but also improve the quality of our economic development," he said.

According to Long, the financial sector in the central region should give more support to small and medium-sized companies, so as to "stimulate domestic demand".

Vice-Minister of Commerce Gao Hucheng also called for financial support for overseas investment in the central region.

"We should encourage more international technological cooperation in the energy and resource sectors in the central region," he said.

(China Daily 09/28/2011 page16)