Reform in financial sector imperative for progress

Healthy financial institutions are a prerequisite for preventing a financial crisis, as central bank governor Zhou Xiaochuan rightly pointed out at this year's Lujiazui financial forum in Shanghai on Tuesday.

Zhou made the comment while encouraging broader and longer-term financial opening-up.

The country faces a variety of challenges in its financial sector, so the emphasis on greater government efforts to advance reforms is welcome, as in this way the country will be better able to preempt a crisis stemming from its financial risks.