Loans to individuals and private companies from Chinese banks have been increasing by an annual average of 50 percent in recent years and the quality of these loans are good in general, said Liu Mingkang, president of the China Banking Regulatory Commission (CBRC), Thursday.

Liu, along with Zhou Xiaochuan, governor of the People's Bank of China, met a group of Chinese and overseas journalists at a press conference on the sideline of the current parliament session.

Liu pledged at the press conference that the country's banking industry will continue supporting the private sector.

As the development of China's private economy is still at its initial stage, the country also needs risk investment funds to finance private companies, hi-tech ones in particular, the official noted.

While urging commercial banks to listen more to these private clients to learn about their demands and find potential risks, Liu called for a further improvement of legal environment for the development of private businesses.

(Xinhua News Agency March 11, 2004)