SHANGHAI Dec 8 China's entrepreneurial hub of
Wenzhou has launched its own index to track private lending,
with China seeking to provide greater transparency in a city
known for its shadow-banking practices, the Shanghai Securities
News said on Saturday.
The Wenzhou Index, released by the Wenzhou Municipal
Government Finance Office, will be updated weekly and will
complement a similar index announced by the central bank in May,
the official newspaper reported.
The wealthy coastal city of Wenzhou plans to channel private
money into local businesses through formal institutions --
mainly small credit firms -- to stem a surge in bad loans as
private firms face difficulties in getting loans from
state-owned banks, local media reported last month.
Wenzhou is also looking at a plan of a trial that would
allow individuals to make direct overseas investments in yuan.
The first Wenzhou Index released on Friday showed private
financing interest rates in the last week of November at 21.43
(Reporting by Melanie Lee; Editing by Paul Tait)