A high savings rate is a distinctive feature of China’s economy. In theory, a high savings rate means enterprises are able to receive financial support at a lower cost; in reality, however, the financing cost of China’s real economy remains high, which has seriously restricted the development of China’s real economy and fostering of new growth drivers. To solve this issue, the report of the 19th CPC National Congress pointed out that “we will deepen institutional reform in the financial sector, make it better serve the real economy, increase the proportion of direct financing, and promote the healthy development of a multilevel capital market”. The stock market is an important direct financing channel. In recent years, China Securities Regulatory Commission (SCRC) has made great efforts to alleviate the financing problems of physical enterprises by adopting measures such as accelerating the IPO process in order to facilitate the development of the real economy, which have produced positive results. Meanwhile, however, especially at the beginning of 2018, China’s stock market plunged under the influence of a series of factors during the past year such as the “structural bull market’, regulatory authorities’ screening for financial “minefield”, and the US stock-market crash. This has dampened the confidence of investors, who had to slow down IPOs in order to alleviate the tension of the market. In such context, Professor Liu Zhibiao, Dean of Yangtze IDEI, held in-depth discussions with relevant experts and scholars the first time on the topic “Impact of Stock Market Crash on the Real Economy and China’s Response”.
