China to make interest rates more market-based

China will push forward measures to make interest rates more market-oriented, enabling the financial sector to better serve the economy, an official statement said on Wednesday.

The new improved interest rate formation and adjustment mechanisms must suit market demand, Xinhua cited a statement released after an executive meeting of the state council, China's cabinet, presided over by Premier Li Keqiang.

China should enhance supervision of financial institutions to ensure fair play and risk management, the statement said.

The benchmark deposit and lending rates will continue to be used as reference and guidance tools.

To prevent irrational pricing of interest rates, the government will enhance supervision and continue to set different reserve requirement ratios for different institutions.