Further interest rate liberalization would start with certain financial institutions and would be achieved by freeing prices of alternative financial products, said Chinese central bank governor Zhou Xiaochuan on Tuesday.

Zhou said the authorities would select financial institutions with "hard constraints", a quality referring to those that are systemically important and meet various regulatory requirements, to start further liberalization of the rates. They would gradually free prices of alternative financial products to get interest rates more market-based.

"The next step is we need to promote the maturity of all preconditions for freeing interest rates and unswervingly push forward market-oriented reform of interest rates step by step."

He made the remarks while attending a forum in Beijing.

To achieve that goal, the Shanghai Interbank Offered Rate, or Shibor, should play the dominant role in determining market interest rates, Zhou said.

wangxiaotian@chinadaily.com.cn