Abstract: Achieving modernization leap in less developed regions is an important aspect of China's modernization, which requires addressing the shortcomings in the simultaneous promotion of new industrialization, IT application, urbanization, and agricultural modernization. Modernization in less developed regions requires substantial funding, but in reality, the low-level balance of financial supply and demand in these regions results in financial exclusion and becomes a major obstacle to sufficient investment. Overcoming financial exclusion requires innovative financial solutions to break through the low-level balance of financial supply and demand in less developed regions. Based on the existing inclusive financial services system in China, financial services and instruments led by large state-owned financial institutions should be innovated, and a comprehensive, multi-level, and complementary inclusive financial ecosystem should be constructed. The financial institutions' service level in less developed regions, especially rural areas, should be improved to promote the flow of capital into these regions and drive their economic development. Capital markets should also be leveraged to innovate financial instruments that support the development of projects in less developed regions and secure various types of risks.
