Shandong, a coastal province in east China, will accelerate financial reform by relaxing market access to private capital and allowing private investors to participate in infrastructure and public projects, Guo Shuqing, governor of the province said on Saturday.

Guo said the province will open fund raising channels for projects including a 60 billion yuan ($9.6 billion) high-speed railway project to private and overseas investors including those from Hong Kong and Singapore.

Private capital has exceeded 80 percent in the fixed-asset investment of the province, said Guo, a deputy of the National People's Congress at the annual session of the country's top legislature.

The media has speculated that Guo, former head of the country's securities watchdog, might be a possible candidate for the next governor of the People's Bank of China to replace the current governor Zhou Xiaochuan.

Guo said that the province will substantially develop the private equity market and the multi-layer capital market.

"Most enterprises still rely on banks for financing and the amount of direct financing through issuing stocks and bonds remains insufficient," he said, noting that the loan growth of banks grew by 540 billion yuan last year.

He shrugged off the risk of local government debt in the province, saying that the total amount will not exceed 20 percent of the province's GDP, which was around 6 trillion yuan last year.