Macro-Finance Salon (No. 89) Series of the 19th CPC National Congress (No. 9): Financial Layout after the 19th CPC National Congress

On January 7, Macro-Finance Salon (No. 89) Series of the 19^th CPC National Congress (No. 9) was held in Room 801, Mingde Main Building of Renmin University of China. Zhou Yueqiu, director of the Urban Financial Research Institute of ICBC, deputy director of GFC, Secretary General of China Urban Financial Society, delivered a keynote speech about the financial layout after the 19^th CPC National Congress. Other guests included Zhang Jie, IMI director, Zhao Xijun, member of IMI academic committee, IMI researcher Xiong Yuan, associate researcher Jiang Nan and Jiang Bo. This meeting was chaired by Lan Hong, deputy director of the Ecological Financial Research Center of RUC. Dr. Zhou Yueqiu first explained about the current situation and future goals elaborated during the 19th CPC National Congress. The development of socialism with Chinese characteristics has entered into a new era, indicating a change of major contradictions of our society. This change has set a new goal for China’s future development. That is to comprehensively build a powerful socialist modernization country in accordance with the "three steps" roadmap for the strategy of strengthening our country. During this process, high-quality development is taking on a more important role. At the same time, the role of finance is also changing. Providing services for the real economy is the duty and purpose of finance, as well as a fundamental measure to prevent financial risks. Therefore, only through deepening financial reform, can we better serve the real economy. Dr. Zhou Yueqiu analyzed three problems that financial services may face when providing services for the real economy. First, the financial supply is inadequate. The demand is hard to meet the needs of China's economic development, and the supply capacity cannot keep pace with the changing demand. Second, the declining efficiency of funds has asked for transferring investment from the real economy to the virtual economy. Third, the green financing gap remains wide and the green financial system needs to be improved. Faced with these possible problems, he put forward some suggestions for sustained and healthy development, including supporting supply-side reform, reducing financing costs, deepening financial reform, preventing financial risks and promoting green finance. He said that at this stage, ICBC has made fundamental achievements in the field of green finance and will continue to benefit the society as the financial reform deepens. During the roundtable discussion, Prof. Zhang Jie thought that Dr. Zhou Yueqiu made a great review about the development of China's finance and summarized the characteristics of China's economic development in a refined way: emphasizing speed and scale in the past and focusing on quality improvement in the current stage. For these two stages put forward different requirements for the banking industry, we should analyze the financial supply and demand in different stages. China will continue to rely on foreign aid financing for some time. Therefore, deleveraging cannot be accomplished in a single move; instead, enterprises’ capacity should be taken into consideration.

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