The financial constituent of China’s economic modernization

China's financial system should be transformed

During the years of reforms and openness, China's financial system has developed significantly and adapted well to the rapid economic growth of the country, RISS expert Natalia Gribova points out in the analytical article of RISS journal “National Strategy Issues”. "China's entry into a new phase of development requires serious changes in the structure of its financial industry, as well as the use of the latest technological advancements in financial business and expansionof provided services. The development of the real sector of the economy is a priority task for the financial sector, as well as improving the country's competitiveness and strengthening its position in the global economy," she explained.

A variety of positive and negative events are taking place in China's financial sphere, so it is under the scrutiny of the analytical community all over the world. Gribova mentioned the crucial areas of the financial transformation: conducting financial reforms, building a regulatory management system, increasing the adaptability of the financial sector to rapidly changing external and internal economic conditions, as well as the formation of a developed and multi-level capital market.

RISS expert draws attention to the fact that despite the changes in the financial sector and liberalization of the national market, the state continues to play an active role in managing the financial system and strengthens its positions by using a wide range of tools to maintain macro-financial stability in the economy. "On the one hand, this approach suggests that widespread concerns about rising debt loads and shadow banking system are unlikely to lead to a financial crisis in China. On the other hand, there are still many questions about the effectiveness of the financial system, as well as its ability to adequately allocate resources in the economy and support economic growth in China," Gribova concluded.

journal China