Thursday, August 24, 2017
No need for Chinese regional governments to pursue over-expanded financial industry.
ANBOUND
Recently, a large portion of regional governments pay significant attention to the proportion of financial added-value in the GDP contribution, hoping to develop the financial industry. There is more than 5 % increase in financial added-value across 28 provinces in China, making finance becomes a pillar industry in these provinces; Shanghai and Beijing have one of the highest contribution ratios. The financial added values in China, U.S., Japan, and the United Kingdom are 8.4%, 7.2%, 4.4% and 7.2% respectively. China however has the highest compares with the other three countries. There is no need for the regional governments to pursue an over-expanded financial industry.