A leading Chinese economist told Xinhua on Saturday the country should give a better play to the market mechanism to mobilize enterprises to take part in the post-quake reconstruction.

Hu Angang, director of the Center for China Study at Tsinghua University in Beijing, said currently the main funding channel for quake reconstruction goals was from the government, of which more than 90 percent was from the central government.

Figures showed China had allocated 54.68 billion yuan (US$7.97 billion) for the relief efforts, of which 49.61 billion yuan was from the central government and the rest from local authorities.

However, experts believed multi-billions in funds was still badly needed in the reconstruction period lasting for years to come.

Hu, also a Xinhua News Agency special analyst, suggested the government formulate a series of preferential policies to motivate various companies, including those foreign-funded, to be involved in the reconstruction after the deadly May 12 quake that killed nearly 70,000.

He held it would help to enhance companies' social responsibility awareness and share the government's burdens. He added amid such natural disasters, the country should nurture system innovation to establish the collaboration mechanism between the public and private sectors.

(Xinhua News Agency June 29, 2008)