CHINA has set up an association to free financial market participants from complicated processes when launching new products, central bank governor Zhou Xiaochuan said today.

Participants will no longer need administrative approval for new products after the founding of the National Association of Financial Market Institutional Investors, Zhou said.

The association only needs to register the products with the central bank, he said.

Eligible products must be developed on the needs of participants, suitable for trading among institutional investors that have pricing, risk identification and risk acceptance capabilities, Zhou said.

China's financial markets have made remarkable achievements in recent years, but they still face a string of problems, Zhou said.

The government is paying more attention to the liquidity of banks than the financing, price finding and risk management of the inter-bank market, which delayed the launch of many new financial products to help develop of the market, Zhou said.

China's inter-bank market includes bonds, commercial paper, gold and foreign currency.