Experts calling for more efficient use of financial resources

In contrast to many overseas markets, where securitization began decades ago, the process is still in its infancy in China.

Domestic asset securitization only began in March 2005. From that date through 2008, just 11 domestic financial institutions issued asset-backed securities worth 66.78 billion yuan, the PBOC said.

Meanwhile, there's concern about whether liquidity in China is only finding its way into limited sectors, such as manufacturing and infrastructure. SMEs, technology companies and the services industry are still hungry for cash.

Guo said that as interest rate reform continues, market forces will channel capital into sectors that are short of finance support.

Zhou Mubing, vice-chairman of the China Banking Regulatory Commission, said the government is focusing both on key economic fields and weak sectors, including agriculture, SMEs and railways.

In a bid to keep economic performance within a proper range, Li said the government will strengthen the coordination of fiscal and monetary policies with industrial and investment policies, maintain policy options and make adjustments at an appropriate time and to an appropriate degree.

"This year, M2 is forecast to grow by about 13 percent," said the government report.

China to open interest rate in one or two years

Internet finance is in, but is banking out?