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Market system indispensable for western China development
2000-07-10
peopledaily.com.cn
Priority should be given to the market system in the development of China's western regions, said an article in the China Economic Times.
Only when local governments confine their role to maintaining a fair market order can a modern enterprise system and sound investment climate in the west be swiftly developed, the article noted.
In view of the fact that capital invested in less-developed areas, preferential polices should be properly adopted to enhance the west's appeal to investors.
Currently, both the size of the capital market and the number of financial products are limited in the west. This means that there is not only a huge market potential and a low risk but also that there may be a high degree of governmental control over financial innovation.
Introducing and innovating new financial products should be encouraged to facilitate the development of the west, said the article.
The article also urged the governments draw up new regulations and supportive policies, especially on taxation.
Fund raising on the stock market would also be a good method for the west, said the article, noting the west as a whole is still not effective at raising funds on the stock market.
To bring the role of the stock market into full play, the west should lay more emphasis on readjusting the industrial structure and ownership structure of their listed companies.
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