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China to promote Internet finance

(Xinhua)
Updated: 2014-03-05 10:54

BEIJING - China will promote the healthy development of its burgeoning Internet finance, according to a government work report delivered by Premier Li Keqiang on Wednesday.

"We will promote the healthy development of Internet banking," Li said, promising also to improve the mechanism for coordinating financial oversight and to keep a close watch on the cross-border flow of capital.

This is the first time that Internet finance has been written into the government work report.

Financial products like Yu'E Bao, invented by e-commerce giant Alibaba's online payment arm Alipay, have gained increasing popularity last year among the general public, but some financial experts also cautioned against risks.

Central bank vice governor Yi Gang said on Tuesday that despite being supportive of innovation, the central bank will take "appropriate measures" to prevent possible risks arising from the sector.

In Wednesday's report, the government also suggested that financial services should better serve the real economy.

"We will ensure that financial services play an active role in meeting the needs of the real economy, including small and micro businesses, agriculture, rural areas, and farmers," Li said at the opening of the annual session of the National People's Congress, China's top legislature.

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