Report urges fast reform of financial system

Non-bank lenders to be allowed to compete with traditional players

China's economic rebalancing will rely on market-oriented and in-depth reform of its financial systems to attract investment into more efficient private sectors, according to a report.

The National School of Development at Peking University said on Thursday legalizing and regulating a credit scheme outside the main banking system, as well as liberalizing interest rate fluctuation should be at the core of any reform.