According to the State Council, China will adopt more favorable policies and update the financial system. The moves aim at encouraging the country's commercial banks to grant more loans to support economic growth.

Nine measures will be taken to boost the role of the financial sector.

For example, the government needs to use such tool as the reserve requirement ratio, interest rates and exchange rates to ensure adequate liquidity for the banking sector.

An extra 100 billion yuan of credit volumn for 2008 will be given to the country's three policy banks, China Development Bank, China Export and Import Bank and China Agricultural Development Bank.

The credit service of Commercial banks will be improved to meet the demand for loans among medium- and small-sized enterprises, investors in the countryside as well as consumers such as house and car buyers.

Other measures included speeding up construction of a stronger capital market, updating methods of financing, improving the management of foreign exchange, using fiscal funds to help the financial sector reduce bad assets, and deepening financial reform to better monitor potential risks.

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According to China's State Administration of Grain, the administration will buy another 14 million tons of grain to expand temporary state reserves.

The purchase is aimed at stabilizing grain prices and protecting farmers' interests. It includes 7.5 million tons of rice, 5 million tons of corn and 1.5 million tons of soybeans. The agency has earlier announced plans to buy 16.5 million tons of grains as state reserves.

China expects a record-high grain output of 525 million tons this year. According to the National Development and Reform Commission, the minimum purchasing price for wheat and rise next year will be raised in order to increase farmers' income and motivate them to reinforce production.

According to telecommunications regulators, China will set 10 cents as a uniform fee for short messages nationwide next year.

Starting this month, telecom service providers such as China Mobile and China Unicom will be asked to cancel all new packages with varying mobile message charges. The uniform price for short messages will take effect on January 15.

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Currently, China Unicom users are charged 50 percent more if they send short messages to subscribers of China Mobile and vice-versa. According to the China Academy of Telecommunication Research, the current packages limit the rights of consumers to choose providers. Under the new regulations, the relatively small service providers such as China Unicom and China Telecom will benefit.

China has more than 627 million mobile phone users, ranking it No 1 in the world. The move will help establish a fair and open telecommunications market, which will ultimately benefit mobile phone users in the country.