The city of Wenzhou in the East China economic powerhouse province of Zhejiang planned to set up a national distribution center for private loans, in the hope of easing the private loan crisis, the China Securities reported.

The aim was to gather and regulate private capital, the paper said, quoting Zhang Zhen, head of the financial department of Wenzhou.

The scheme has been submitted to the Zhejiang provincial government which will review and amend the plan before submitting to the central government for approval..

By Sun Yuanqing