Some 400 domestic and overseas bankers, financial institution representatives and banking supervisors gathered here on Wednesday to discuss China's banking and financing issues at a high-profile forum.

The Beijing International Finance Forum 2004 is sponsored by the People's Bank of China and China's banking, securities and insurance regulatory commissions.

Zhou Xiaochuan, governor of the People's Bank of China, the country's central bank, said at the forum that China has attached great importance to reforming its "big four" state-owned banks to maintain financial stability and dodge systematic risks.

The "big four" are the Industrial and Commercial Bank of China (ICBC), the Bank of China (BOC), the Agricultural Bank of China (ABC), and the China Construction Bank (CCB).

Zhou acknowledged that the reform of China's banking system is "one step" behind the reform of the country's other state-owned enterprises, but argued that the "big four" had taken up the burden to provide resources and the driving force for the reform of other state-owned enterprises.

"We have to be very prudent in taking actions as problems in the banking industry will easily lead to financial crisis," Zhou told the forum.

"We are very confident to further our reform after the bad loan ratio fell from its maximum amid the Asia financial crisis in 1998while separating state enterprises from government departments," he said.

China's efforts to accelerate its reform on over-staffed banking sectors had won support from world business leaders attending the forum.

Takatoshi Kato, deputy managing director of the International Monetary Fund, said China had made great progress in improving its supervision of the banking sectors and reducing the bad loan ratio.

However, Kato said China needs a complete restructuring plan and to strictly implement requirements to help the BOC and CCB achieve their goals to gain stock market listing.

The IMF deputy head said China should further strengthen its supervision of its banks to carry out their reforms according to the modern corporate system.

Big names attending include Chinese Vice Premier Huang Ju, alsoa member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, Jose Antonio Ocampo, UN Undersecretary General for Economic Affairs, and other world business leaders from organizations like IMF and the World Bank.

Heads of China's banking, securities and insurance regulatory commissions all appeared at the forum and gave speeches on the country's reform and development in banking and finance fields.

China is under great pressure to reform its debt-ridden state-owned enterprises since its accession to the World Trade Organization in 2001.

According to China's commitments to the WTO, foreign banks will be allowed to conduct renminbi business in cities like Beijing from Dec. 11, 2004. And by December 2006, China has to open fully its banking sector to foreign investors.