Thursday, November 03, 2016
Nature of China's financing system reform
ANBOUND
In July this year, the Central Government of China has promulgated the "Opinions of the CPC Central Committee and the State Council on Deepening the Reform of Investment and Financing System", hoping to deepen the reform of investment and financing system to exert the role of investment in stabilizing growth, adjusting structure and benefiting people's livelihood. Anbound research team's follow-up study reveals that there the policies are still having limitations in the understanding of the problems, and there is room for improvement in their top-level designs and strategic initiatives. There must be drastic reform in China's investment and financing system; the reform will be an important part of the transformation of the economic operation system, and it will act as an important supply system for the supply side of structural reform. It would be necessary to realize the competitive decisive role of the market in investments and financing, allowing price as the main mode of market dynamic transmission mechanism to be the carrier of the precise allocation of resources.