Jan. 12, 2007 (China Knowledge) – Premier Wen Jiabao will chair closed-door financial reform talks next week, reported The Financial Times on Thursday.

Neither the date nor the agenda have been officially set. But the newspaper reported that talks are expected to focus on rural banking and a more independent role for Central Huijin Investment, a State-owned financial holding company in China. The possibility of Huijin’s role in managing some of China’s foreign exchange reserves, which exceeded RMB 1 trillion in 2006, is also likely to be discussed.

Other topics in the agenda include the recapitalization of the Agricultural Bank of China, which posted a non-performing loan ratio of 23.6% in 2006, making it difficult to attract foreign investment prior to an overseas IPO.

Another topic is the reforms to the bond market, including a decision to allow the China Securities Regulatory Commission (CSRC) to approve bond issuances by listed companies, the newspaper added.