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Friday, July 21, 2017
Avoid financial policy mistake in "moving from virtual to real economy"
ANBOUND

One of the objectives of China's economic restructuring is to promote financial resources to support the real economy. However, there is a strange view: the lower the ratio of the financial industry the better, and that the financial industry decline is considered to be an effective adjustment. In the second quarter, the added value of the financial sector grew by 3.2% year on year. The added value of the financial sector accounted for 8.13% of GDP in the second quarter, a decrease compares with the first quarter. Anbound believes that moving from virtual economy to real economy is not compressing the financial industry, but rather to develop the real economy so that financial resources are more effectively allocated to the real economy. If "moving from virtual to real" is seen merely as reducing the growth and size of the financial industry, that is a completely wrong view.

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