On September 17, 2012, the People’s Bank of China, China Banking Regulatory Commission, China Securities Regulatory Commission, China Insurance Regulatory Commission and the State Administration of Foreign Exchange jointly issued the 12th Five Year Plan for the Development and Reform of Financial Industry. According to the plan, China will be making efforts to improve the financial macro-control, deepen the financial reforms and expand the opening-up of financial market during the 12th Five Year period (namely 2011 to 2015). The reforms in financial market will be promoted along with a “marketization” direction and cover the following areas: (1) promoting the marketization of interest rates; (2) improving the formation mechanism of Renminbi exchange rate; (3) achieving the convertibility of Renminbi for capital account items; and (4) further improving the operation management of foreign exchange reserves. The opening-up of China’s financial industry involves further reforms of its currency market, capital market, foreign exchange market and gold market. In particular, the plan encourages domestic financial institutions to efficiently use foreign preferential loans and international commercial loans and deepen the financial cooperation with overseas institutions. As a general goal, China hopes that direct finance by non-financial enterprises will account for 15% or more of the total social finance by the end of 2015.
The full Chinese text of the plan is available here.