Ties between the financial sector and the real economy should be further strengthened to facilitate China's technological advancement and high-quality economic growth, said the country's top financial regulators at the 14th Lujiazui Forum in Shanghai on Thursday.
Li Yunze, head of the National Administration of Financial Regulation, said at the forum's opening ceremony on Thursday that more support will be provided to facilitate China's high-level technological self-reliance and independence by creating a wholesome circulation between technologies, industries and finance.
Financial support will be increased for advanced manufacturing, strategic emerging industries and traditional industries undergoing transformation and upgrading. In this way, China can build a modern industrial system at a faster pace, said Li.
Financing for the private sector should be further optimized to strengthen financial services provided to privately owned enterprises in order to nurture entrepreneurship. Inclusive finance should seek substantial development to consolidate market entities' confidence, he added.
More support will also be rendered to new types of consumption and service-based consumption, such as new energy vehicles and green home appliances. All these efforts are intended to help the financial sector more effectively serve the real economy, the NAFR chief said.
Yi Huiman, chairman of the China Securities Regulatory Commission — the country's top securities watchdog — also said at the opening ceremony that measures will be rolled out to support China's high-level technological self-reliance and independence when appropriate.
The capital market, in which both risks and profits are shared, can better meet demand from technologically innovative companies which evolve rapidly, entail higher risks and possess lighter assets. The capital market plays an important role in completing corporate governance, stimulating entrepreneurship and bringing about advantageous technological outcomes, Yi said.
Meanwhile, efforts will be made to study the differentiated institutional arrangements to complete China's multilevel capital market system. More innovative products and measures will be rolled out to increase the ratio of equity and bond financing, boost mergers and acquisitions, and facilitate the maturity of real estate investment trusts. All these are aimed at advancing the smart, green and integrated development of Chinese industries, he added.
The benchmark Shanghai Composite Index climbed 0.49 percent and the Shenzhen Component Index closed 0.13 percent higher on Thursday. The financial sector has led the market rally, with prices of A-share banks, insurers and brokerages finishing 1.78 percent, 1.3 percent and 1.03 percent higher, respectively, on average.
The Lujiazui Forum has reached its 14th edition this year, with the theme this time being: "Global financial opening-up and cooperation: New drivers of economic recovery".
Li said at the opening ceremony that China will firmly open up its financial market wider. Over the past few years, more than 50 financial opening-up policies have been rolled out in the country, including lifting foreign ownership restrictions in the financial sector.
The asset management joint venture set up by BNP Paribas Asset Management Holdings and the asset management subsidiary of Agricultural Bank of China will soon start operating in Shanghai, Li added.
Also launched at the opening ceremony was the international reinsurance board in Shanghai. Related implementation regulations were also announced on Thursday.
