BEIJING -- Legislators have called for support for the burgeoning Internet finance industry and better management of it.

Internet finance is an innovative sector which offers common people universal access to investment channels, Lai Xiaomin, a deputy to the National People's Congress (NPC), said on Wednesday at a panel discussion at the top legislature's ongoing bi-monthly session.

Legislators discussed a report on strengthening the regulation of financial sectors and preventing financial risks.

People, whether well-educated white collar workers or retired grandpas and grandmas, have raced into Internet finance tools like Yu'ebao, Lai said.

Yu'ebao, or leftover treasure, is a hit online deposit service launched by Internet giant Alibaba's online payment arm Alipay in June 2013. It enables Alipay users to channel spare money to money market funds with high returns and almost zero threshold.

The service has attracted 81 million users, with aggregate deposits estimated at around 500 billion yuan (81 billion U.S. dollars) in the first eight months of its operation.

People have the right to freely deal with their properties and their rights should be respected, according to NPC Standing Committee member Wu Xiaoling.

"The booming Internet financial business reflects market needs and will break a long-term paradox that the public find nowhere to invest their spare money, while small companies find nowhere to raise money," Wu said.

But Lai warned that in the long run Internet finance and other virtual economic activities may become a source of financial risks if not well regulated.

The NPC deputy suggested forming a special organ to supervise the industry's development.

Lai and Wu also called on authorities to strengthen supervision and regulate the sector through legislation.

Authorities should hurry to work out operational standards and rules for Internet finance to comply with and at the same time enhance public awareness of the financial risks.

Lai also urged the market dominance of state-owned banks to be weakened and for smaller and community banks to be promoted in order to solve the difficulties of some small companies in gaining loans. Big banks are notoriously unwilling to lend money to small enterprises.

On Wednesday, legislators also discussed a report on the central government's final accounts in 2013 and an audit report on the implementation of the 2013 central budget.

Zhang Dejiang, chairman of the NPC Standing Committee, joined the panel discussion.

The top legislator also presided over a meeting attended by the NPC Standing Committee's vice chairpersons and listened to reports reviewing a series of bills and reports.

Another meeting of the NPC Standing Committee's chairman and vice chairpersons will be convened to decide whether or not to put these bills to a vote.