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In a keynote speech to the meeting, which is held every five years, Premier Wen Jiabao highlighted a number of problems facing China's financial industry, including an accelerating international trade imbalance, poor governance of financial corporations and a defective rural financial system.

Wen said that China's financial industry had witnessed historical changes since the last conference was held in 2002. "However, quite a number of problems and contradictions still exist ... We must attach great importance (to the problems and contradictions) and take forceful means to solve them," he said.

The measures agreed by the State Council or cabinet, include allowing China Development Bank, one of the nation's three policy banks, to take the lead in opening commercial operations ahead of the Export-Import Bank of China and the Agricultural Development Bank of China.

Following the market listings of the three Big Four banks, namely China Construction Bank, Bank of China and the Industrial and Commercial Bank of China, the meeting also finalized the shareholding reform plan for the remaining Agricultural Bank of China (ABC) in an effort to bolster rural economy.

Wen said that ABC reform must be carried out in a steady manner that would serve the financial demands of rural China.

Official figures revealed that only 60 percent of the 120 million rural households had access to bank loans. While Chinese farmers generated only 15 percent of the country's total bank loans and deposits, the per capita outstanding loan balance for rural residents is less than 5,000 yuan (US$643), only 10 percent of that for urban residents.

To remedy the situation, the meeting agreed upon a raft of principles such as facilitating rural financial reforms, moderately reducing the access threshold for financial institutions into the rural market, encouraging and supporting the establishment of diversified rural credit organizations including those engaged in small loans and pushing forward agricultural insurance.

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