However, there is no major breakthrough on whether to allow the establishment of private banks and more flexible interest rates. Short of these, he said, "our financial reform still seems to have a long way to go".

Wang Jianye, chief economist at the Export-Import Bank of China, said new rules do show major progress by putting the private lending in the spotlight.

But Wang said that the reform has still not fundamentally transformed the local financial system.

Unless that is done, there will not be an effective solution to the problem of rampant underground lending, Wang said.

Wang Xiaotian in Beijing contributed to this story.

We recommend:
Yangtze River Highway Bridge in Taizhou to open	Shoemaker not subject to 16.5% tariff by EU	Shanxi to build four large coking industry parks slows
AVIC unveils new aircraft engines	China's MA700 to take flight in 2016	13th Int'l Automobile Industry Exhibition
China Int'l Industry Fair opens in Shanghai	Caofeidian coal wharf put into use	Galaxy Soho building in Beijing