China to deepen reform of smaller and medium lenders

HONG KONG (Reuters) - China will deepen the reform of smaller and medium banks, and make financial institutions, local governments and financial regulators carry out their responsibilities, China State Council said in a statement on Wednesday.

China will improve the legal environment where private economy and foreign investment firms will be supported, and to set up a punitive compensation system for intellectual property infringements, the government said following a meeting of the Financial Stability and Development Commission (FSDC) chaired by vice premier Liu He.

Small and medium banks will be able to replenish capital through multiple channels, it said in the statement.

Reporting by Meg Shen and Twinnie Siu; Editing by Chizu Nomiyama