Eight Imperatives to be Done by Finance in Serving the Wider Economy

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 2

Year of Publication : 2020

Authors : Jia Kang

10.14445/23939125/IJEMS-V7I2P113

How to Cite?

Jia Kang, "Eight Imperatives to be Done by Finance in Serving the Wider Economy," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 2, pp. 84-87, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I2P113

Abstract:

To deepen financial reform in China, we must grasp the overall situation, reform thoroughly to correct the wrong tendency of being distracted from the intended purpose, supervise with a large system, and establish a large framework of combining commercial finance with policy finance. Eight imperatives for the finance to be done in serving the wider economy are as follows: First, it is imperative to clearly understand and grasp the work of supporting the upgrading of the wider economy with financial innovation. Second, it is imperative to form a seamlessly connected financial and capital market through a diversified financial product system. Inevitably, there will be a monopoly in the financial field, which should not be excessive. Excessive monopoly must be resolved by reform. Third, diversified reform should emphasize the optimization of the structure, and it is imperative to increase the proportion of China’s direct finance. Fourth, it is imperative to consider strategically matching healthy and sustainable policy financing systems to financial innovation in diversified development. Fifth, it is imperative to conduct the third industrial revolution represented by the connection of the Internet in financial innovation. Sixth, it is imperative to conduct the innovation in the PPP mechanism in the field of investment and financing. Seventh, it is imperative to create conditions for the realization of RMB convertibility under the capital account in the process of RMB internationalization (self-dismantling the firewall). Eighth, it is imperative to grasp the relationship between development and regulation in financial innovation.

Keywords:

finance reform, eight imperatives

References:

No Reference