China's top banking and insurance regulator on Thursday said authorities would work to reform and improve the supervision, assessment, and incentive mechanisms of financial institutions to boost private sector finances.

Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission (CBIRC), said Chinese President Xi Jinping's speech at the symposium on private enterprises last Thursday was quite a reassuring force for both private entrepreneurs and the financial sector, and improvement of the banks and insurance institutions would be launched to help them dare to, be able to and be willing to loan to private firms.

The CBIRC stated clearly and firmly as a requirement that banks and insurance institutions should adjust loan measures to specific conditions, in particular to those private firms with development prospects and normal operations but facing challenges temporarily, of which the relative policies have been implemented, according to Guo.

The invisible walls for private enterprises must be broken down, Guo stressed, adding that financial sectors should make no exception in credit policy, credit operation and internal assessment. 

He noted that at the moment the private sector contributes more than 60 percent of GDP, while loans to it from banks only account for about 25 percent of the balance of loans of banks, which must be changed. 

The first step is to make sure new loans for private firms make up a mere one-third of new corporate loans of larger banks as well as a mere two-thirds of that of small and medium-sized banks, striving to make new loans for private firms account for more than half of new corporate loans from all banks on average in three years, Guo said.