China and Mongolia should further expand cooperation in investment and trade and launch several big projects as soon as possible, a senior Chinese leader proposed on Thursday.

Wu Bangguo, China's top legislator, also said relevant departments from the two countries should improve overall planning, better the legal and investment environment, as well as maintain stable and consistent policies to provide a solid foundation for economic and trade cooperation between the two countries.

He made the remarks while meeting Mongolian Prime Minister Norovyn Altankhuyag on Thursday in Ulan Bator. Wu's visit to Mongolia is the first by a Chinese top legislator in 16 years.

Wu Bangguo (R), China's top legislator, meets with Mongolian Prime Minister Norovyn Altankhuyag on Thursday in Ulan Bator. [Photo/Xinhua]

During the meeting, Wu particularly mentioned cooperation in mineral resources exploration, infrastructure construction and the financial sector.

Altankhuyag said he fully agreed with Wu's proposal and Mongolia will take "concrete measures" to deepen cooperation with China in mining, husbandry, infrastructure construction and transit transport.

On Thursday, Wu also witnessed the establishment of the first Chinese bank office in Mongolia — the Ulan Bator Office of the Bank of China.

This is the third foreign bank branch set up in Mongolia, according to Naidansuren Zoljargal, Governor of the Central Bank of Mongolia.

He said China has been Mongolia's biggest trade partner and top investment source country for several years, and the establishment of the Ulan Bator Office of the BOC will boost investment and financial cooperation between the two countries.

Bank of China President Li Lihui said the BOC highly values the growing market of Mongolia and would like to provide quality financial service for enterprises from the two countries.

While meeting Mongolian President Tsakhiagiin Elbegdorj on Thursday morning, Wu also said China is willing to push forward the strategic cooperation with Mongolia.

He said the two countries should further consolidate strategic mutual trust, and understand and support each other in major issues that concern the sovereignty, security and development of the other country.

Elbegdorj said Mongolia will uphold the one-China policy and would like to maintain high-level exchanges with China.