China to make interest rates more market-based

BEIJING - China will push forward measures to make interest rates more market-oriented, enabling the financial sector to better serve the economy, an official statement showed Wednesday.

New interest rate formation and adjustment mechanisms must suit market demand, according to a statement released after an executive meeting of the State Council, China's cabinet, presided over by Premier Li Keqiang.

China should enhance supervision of financial institutions to ensure fair play and risk management, the statement said.

The benchmark deposit and lending rates will continue to be used as reference and guidance tools.

To prevent irrational pricing of interest rates, the government will enhance supervision and continue to set different reserve requirement ratios for different institutions.

Mapping of the 13th five-year plan will be crucial for industrial upgrading, social progresses and people's life, it said, adding that a leading group will be set up to coordinate the mapping of the plan.

China will continue to streamline administration and delegate power to the lower levels. Among such efforts, requirements for enterprises to apply for expressway construction will be cut from 17 to seven items, which will include land use and environmental protection.

China will also further steady growth of the industrial sector and boost industrial restructuring, and expand domestic demand, the statement said.