In a significant move to strengthen China’s economic foundations, Premier Li Qiang has emphasized the vital role of the financial sector in supporting the real economy. Addressing a national conference of financial commission directors in Beijing on Tuesday, Li outlined a comprehensive strategy aimed at promoting high-quality development and ensuring financial stability across the nation.
Li Qiang, who also serves as a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee and heads the Central Financial Commission, highlighted the necessity of the financial sector aligning closely with the country’s economic objectives. He called for unwavering adherence to the centralized and unified leadership of the Party Central Committee over financial work and a steadfast commitment to developing a financial system with Chinese characteristics.
“Efforts should be intensified in key areas such as technology finance, green finance, inclusive finance, pension finance, and digital finance,” Li asserted. He emphasized the importance of balancing financial opening-up with security considerations, accelerating the establishment of a modern financial system that serves the real economy effectively.
Li also underscored the urgency of completing reforms of local financial management mechanisms as scheduled. He stressed the importance of strengthening regular supervision over local financial institutions to prevent systemic financial risks, ensuring that the bottom line of financial safety is firmly guarded.
At the same conference, He Lifeng, a member of the Political Bureau of the CPC Central Committee and director of the office of the Central Financial Commission, echoed Li’s sentiments. He called for concerted efforts to mitigate interconnected risks in sectors such as real estate, local government debts, and small and medium-sized financial institutions.
“Illegal financial activities must be severely cracked down upon,” He stated, emphasizing the need for a robust regulatory framework. He also highlighted the importance of identifying effective entry points for enhancing financial support to the real economy, intensifying support for major strategies, key areas, and addressing weak links in the financial system.
These directives signal China’s commitment to reinforcing its financial infrastructure to support sustained economic growth. By focusing on innovation in financial services and stringent risk management, the leadership aims to foster a stable environment conducive to investment and development.
For global investors and market analysts, these developments reflect China’s proactive approach to navigating complex economic challenges. Business professionals are likely to find new opportunities arising from advancements in technology finance and green finance initiatives. Academics and researchers can anticipate significant reforms that may impact studies on China’s economic policies and financial systems.
