Wenzhou expects substantial financial reforms(2)

In addition, four private capital management companies have provided financial support of 423 million yuan for more than 100 projects since the reforms began.

"The centers have played a positive role in restoring people's confidence, as the crisis in 2011 made some people unwilling to lend money. The centers serve as new channels for those who want to borrow from others," said Xu.

However, many businessmen were unsatisfied with the slow progress of Wenzhou's financial reforms.

Yang Jiaxing, a 67-year-old businessman in Wenzhou, had planned to establish a private bank with his friends as he thought he would be allowed to do so due to the financial reforms.

Yet his application was turned down, because under the regulations, private enterprises can not apply in setting up banking institutions.

"No breakthroughs have been made in the establishment of private banks and the drafting of the regulation for a private lending market," said Zhou Dewen, chairman of the Wenzhou SME Development Association.

Zhou said the private lending registration center was a remarkable reform step, yet the volume of deals was too small compared with the unofficial lending market with an estimated value of 120 billion yuan. in Wenzhou.