China to liberalise interest rates, push capital market reform: PBoC governor

BEIJING (AFX-ASIA) - The government will liberalise interest rates "step by step" to promote reforms in China's banking and capital markets, People's Bank of China (PBoC) governor Dai Xianglong told the China Development Forum yesterday, the China Daily reported. 	    Laying out the government's agenda for reforms, Dai said: "The government is exploring the possibility of allowing domestic and overseas investors to buy non-performing assets from asset management companies and setting up foreign-funded western development banks." 	    At the same time, restrictions on treasury bonds will be changed to make them more tradable and the government will encourage companies to issue corporate bonds, he said. 	    He repeated plans to overhaul and restructure state-owned commercial banks into joint stock commercial banks, although the state will still hold a majority stake. The PBoC will also encourage moves to set up investment companies mainly to serve small and medium-sized enterprises, Dai said. More foreign banks will be allowed to operate in China, and, in the capital market, more areas will be opened to foreign investment. 

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