CHINA Xi stresses role of finance in serving real economy

CHINA

Xi stresses role of finance in serving real economy

Xinhua

12:45, February 23, 2019

BEIJING, Feb. 23 (Xinhua) - Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, underscored that China should deepen supply-side structural reform in the financial sector and strengthen the sector's ability to serve the real economy.

Xi made the remarks when presiding over a group study session of the CPC Central Committee Political Bureau Friday afternoon.

The country should keep a fine balance between maintaining growth and forestalling risks and deal with risks in key areas in a targeted and effective manner, he said, adding that China should deepen opening-up of the financial sector.

Xie Duo, Party secretary and chairman of Silk Road Fund Co., Ltd, briefed on the issue and made suggestions.

Xi pointed out that finance is a core competitiveness of a country, financial security is an important part of national security, and the financial system is a major fundamental system in the process of economic and social development.

While historic achievements have been accomplished in the financial sector since reform and opening-up, the market structure, operation philosophy, innovation capability and the level of service of the sector have yet to meet the requirements for the country's high-quality economic development, Xi said.

The country should push for high-quality development of the sector with a focus on improving financial services and forestalling financial risks, he added.

He also stressed that finance should play its role in serving the real economy, catering to economic and social development while meeting the needs of the people, adding that the economy and finance are interdependent and should grow and thrive together.

To deepen supply-side structural reform in the financial sector, China should implement the new development philosophy and focus on key areas to allow the sector provide better services to the real economy and the people, he said.

Optimizing the financial system should be key, he said, urging improvements in the financing structure as well as in the systems of financial institutions, the market and products.

A multi-level banking system with wide coverage and diverse expertise should be established, while personalized and differentiated financial products that suit market demand should be developed, he said.

The number of small and medium-sized financial institutions as well as their proportion of businesses should be increased, while financial services to the small and micro firms as well as agriculture, rural areas and rural people should be improved, Xi said.

Xi stressed the need to establish a standard, transparent, open, dynamic and resilient capital market that has sound fundamental institutional arrangements, proper management on market access and exit and tightened full-process supervision on transactions.

He said that financial services conducive to the development of industrial, market, regional and green development systems of a modernized economy shall be provided.

An all-around and multi-level financial service system including venture capitals, bank loans and bond and stock markets shall be put in place, he said.

He called on the country to go along with the general development trend of relying more on innovation, creation and creativity to foster a change in the structure and quality of financial services.

When it comes to the support of financially-strained private enterprises, he said that market laws shall be respected more and that targeted financial services are needed.

Private firms who are temporarily in difficulties but engage in businesses that match well with the national industrial development plans or focus on the real economy, possess leading technologies and enjoy an advantage in the market shall be prioritized, he said.

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