In relation to the question on how to be effective in preventing the systemic financial risk, the research team at ANBOUND Consulting is of the view that the saying that we must eradicate our old selves before we can turn into something greater is a true portrayal of the debt-laden enterprises in China.

In order to knock out some of problematic concepts and remove institutional obstacles, we must implement the reform on the supply side resolutely and get away from debt-fueled economy.

Instead of inflating the debt bubble, we should increase the supply of effective financing as this is the only way to ward off the potential systemic financial risks.