The report of the 19th National Congress of the Communist Party of China aimed at the establishment of a "modern economic system" and proposed that in the aspect of "deepening supply-side structural reforms", it is necessary to "speed up the improvement of the socialist market economic system, and develop a modernized economy, which require to put the focus of economic development on the entity economy". In terms of "speeding up the improvement of the socialist market economic system", we need to "deepen the reform of the financial system, strengthen the ability of finance to serve the entity economy, increase the proportion of direct financing, and promote the healthy development of multi-level capital markets". This formulation echoes with the policy of "reconstructing the dynamic structure of China's economic development by revitalizing and improving the multi-level capital market" put forward in the 13th Five-Year Plan. On the one hand, it emphasizes that revitalizing the entity economy is one of the important goals of the supply-side structural reform, which aims to alleviate the pressure of economic downturn on China's economy and transform "from real to fictitious" to "strengthening real and restraining fictitious"; on the other hand, it is also consistent with the 18th National Congress of the CPC that "we should deepen the reform of the financial system, improve the modern financial system that promotes macroeconomic stability and supports the development of the entity economy", which shows that the reform of the financial system is one of the effective measures to revitalize the entity economy. This also clarifies the reform direction with financial services for the entity economy as the core, meanwhile improving the function of the capital market as the key.
