Macro-Finance Salon (No. 37): China's Financial Reform and Innovation
2016-10-16 IMI
Professor Cao Fengqi analyzed the development of China's financial field through innovation of China's financial theory, reform of China's financial system and deepening of financial reform in detail. He pointed out that along with the development of our market economy, marketization of corporate finance, expansion of foreign trade and international finance, global economic integration, development of economic financialization, prosperity of world finance industry, consecutive innovation of financial system, market, technology and instruments, financial economy has already became one of the vital parts forming the global economy. He considered that currently generalized finance, namely modern finance, should be established and a deeper research regarding financial theory is needed.
With respect to the deepening of financial reform and innovation, Professor Cao underlined that it is necessary to deepen the reform of banking system by enhancing its functions which serve the real economy and middle and small-sized enterprises, developing inclusive finance and green finance, handling the relationship between financial intermediary agent and management of assets and wealth. Non banking financial institutions are required to play its role in the legalization, transparency and normalization of informal finance. It is essential to scale up the capital market and adjust its structure with an emphasis on the investment of stock equity while duly developing the investment on debt so as to protect the legal rights and interests of investors. A further step should be taken in order to promote and perfect the financial supervision system by developing and normalizing internet finance as well as noticing and researching the block chain finance.
