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China will enhance the governance and regulation of local financial institutions to improve the regional financial environment, said the Financial Stability and Development Commission headed by Vice Premier Liu He in a statement on Gov.cn. Local financial institutions should better serve small businesses and local residents to maintain a balance between financial supply and demand, the statement read. The Commission also urged the better use of IT to improve efficiency, and punishment for those failing to carry out their duties and avoid improper government interventions to stimulate the innovation of local financial institutions.