Xu Lin, deputy head of the Development Planning Department of the National Development and Reform Commission, indicated at the 2005 Sino-Japan High-Level Economic Forum on October 9 that along with the enhancement of marketization, the financial service trade should become a basic industry boosting steady socio-economic development.

Xu Lin indicated that in the past the National Development and Reform Commission, while discussing financial problems, usually treated finance and bank as a policy means, and not as a marketized and commercialized service industry. But now this field is looked upon as a highly marketized, or should be said, as a highly commercialized service realm.

Xu expounded the development plan for the financial service industry during the "11th Five-Year Plan" period from six aspects.

First, during the "11th Five-Year Plan" period, GDP will possibly reach a growth of over 7.5 percent, per-capita financial asset will reach an excess of 40,000 yuan. On such a high level basis, personal demand for financial service will give rise to a very big space, and the financial service industry must satisfy such diversified and multi-tier needs for financial service. It is particularly necessary to improve the efficiency and competitiveness of the financial service industry, strengthen the financial system, control financial risk, perfect the service network and create a financial service variety.

Second, centered on the adjustment of China's economic structure, it is necessary to improve financial service. First of all, improve the rural financial service system, and then centered round the adjustment of the ownership pattern and the development of small and medium-sized enterprises, especially the development of hi-tech enterprises, we should exert ourselves to develop small and medium banks under the shareholding and cooperative systems, particularly financial lease companies, startup investment funds and some other non-banking financial institutions.

Third, it is planned to develop various types of specialized investment banks, financial companies, trust companies, funding companies and other non-banking financial service agencies, so as to satisfy the needs of structural adjustment, especially the financial service needs for the merger and acquisition (M&A) of more and more enterprises and the regrouping of assets.

Fourth, along with the expansion of various types of insurance demand, we should open more new varieties of personified insurance to meet multi-tier insurance needs, at the same time, we should standardize the development of insurance agents and broker companies, including web insurance-related settlement of claims and other varieties.

Fifth, with the arriving of an aging society in China, especially the gradual perfection of the social insurance system, the enlargement of the scale of various types of Chinese insurance and social insurance funds, social insurance funds need the bank, insurance and securities industries, through their financial service, these funds are provided with the service need for the preservation and increment of values, so that social insurance can continue to develop. And

Sixth, in order to stabilize the continuously expanding financial service market, maybe we should still institute some compulsory savings deposit insurance system, set up deposit insurance funds, investors compensation fund, insurance security funds, and other new funds. In line with the principle of limited compensation, we should set up a payment mechanism for the insurance industry.

By People's Daily Online