China c.banks urges support to service sector

Chinese lenders, securities brokers and insurers were urged to boost financial services -- from lending to listing -- to the service sector as part of Beijing's efforts to make the sector more competitive.

China's central bank and regulators on Tuesday issued a long "should-do" list for financial institutions in supporting the service sector but provided few details on how the instructions would be carried out.

"Accelerating service sector growth is a key task for strategic economic restructuring, international competitiveness and a sustainable economic development approach," according to a statement published on the Web site www.pbc.gov.cn.

It was jointly issued by the People's Bank of China, the China Securities Regulatory Commission, the China Banking Regulatory Commission and the China Insurance Regulatory Commission.

Among the "proposals", banks were urged to streamline foreign exchange management in support of service firms expanding abroad, and to facilitate overseas investment by Chinese service firms.

China will also encourage service providers to issue bonds and stocks, and securities houses were told to improve their brokerage services.

Services in rural sectors, small-sized service providers, and e-business and modern logistics are the key areas to be supported, according to the statement.