OREANDA-NEWS.  October 09, 2012. Days ago, the State Council approved the Twelfth Five-Year Plan for Financial Sector Development and Reform jointly formulated by the PBC, the CBRC, the CSRC, the CIRC, and the SAFE (hereinafter referred to as the Plan), which is hereby released.

The Plan, comprising nine chapters, is formulated in accordance with the Twelfth Five-Year Plan for National Economic and Social Development of the People’s Republic of China and relevant documents of the National Financial Work Conference in 2012. It reviews the main achievements in financial sector development and reform during the Eleventh Five-Year Period, analyses the opportunities and challenges facing the financial industry, and expounds on the guiding principles, main objectives and policy measures for financial sector development and reform in the Twelfth Five-Year period.

The Plan highlights top priorities for financial sector development and reform from seven aspects, i.e. improving macro financial management, optimizing organizational system, building financial markets, deepening financial sector reforms, increasing financial sector opening-up, safeguarding financial stability, and strengthening financial infrastructure.

According to the Plan, the guiding principles of financial development and reform in the Twelfth Five-Year period are: holding high the banner of socialism with Chinese characteristics, taking Deng Xiaoping Theorem and the important thoughts of Three Represents as the guidance, thoroughly implementing the Scientific Approach to Development, comprehensively promoting financial reform, opening-up and development, enhancing comprehensive strengths, international competiveness and risk prevention capacity of the Chinese financial industry, enabling the financial sector better serve the real economy, improving the macro financial management and regulatory system, so as to build a multi-tiered, well-structured, efficient and sound modern financial system and to create a new landscape for financial reform and development.

The main objectives for financial development and reform in the Twelfth Five-Year period are as followed: The financial industry will continue stable and relatively fast growth and the all-system financing aggregates will grow at a reasonable pace; financial sector restructuring will make stride, and direct financing will take up a much larger share in the all-system financing aggregates; the market will play a more important role in financial resources allocation, the market-based interest rate reform will make further progress , the RMB exchange rate regime will be further improved, the convertibility of RMB under the capital account will be realized on a gradual basis, and a multi-tiered financial market system will make further improvement. The reform of financial institutions will be deepened, and modern enterprise system of large financial institutions will be improved with stronger ability in innovation, development, risk management and better international competitiveness. Full coverage of financial services will be realized, and financial support to scientific innovation and economic restructuring will be intensified to better serve the real economy. Financial risks will be controllable in gerneral, as risk management capacity of financial institutions will be further enhanced, the systemic risk prevention system and early warning system, the evaluation system and resolution system will make further progress, and the financial safety net including the deposit insurance scheme will be basically put in place.

As a national industry program approved by the State Council, the Plan is the basis for financial sector development and reform in the Twelfth Five-Year period, and is of great significance for implementing the decisions adopted at the National Financial Work Conference in 2012, consolidating the accomplishments in dealing with the international financial crisis, and promoting the reform, opening-up, and healthy development of the financial industry in the Twelfth Five-Year period. Government sectors and financial administrative departments at each level should fulfill their duties, develop and implement relevant measures to support financial sector development and reform based on the Plan, and realize all objectives specified in the Plan.