BOAO, Hainan, April 23 (Xinhua) China's central bank governor Zhou Xiaochuan said on Saturday China is making preparations for reforming the exchange rate, which should be in a gradual pace.

    China is strengthening reform on financial institutions and financial sectors and allows the exchange market to play a bigger role, said Zhou Xiaochuan, governor of the People's Bank of China.

   Zhou made the remarks during the High Level Dialogue of Ministers at the 2005 conference of the Boao Forum for Asia (BFA), held in the coastal town of southernmost China's Hainan Province.

   Zhou said China will reform the exchange rate in line with the process of its opening-up and market needs, Zhou added.

   On corporate governance reform, Zhou believed that China will explore ways to build a corporate governance structure combined with international practice and Chinese characteristics, he said.

   The High Level Dialogue of Ministers was an innovation of the 2005 BFA annual conference. It aims to provide a platform for entrepreneurs to communicate with senior government officials face to face and help them to establish full awareness of industrial polices.  Enditem