The report of the 19th National Congress proposed that we should focus on the real economy when building the modern economic system. General Secretary Xi Jinping pointed out during his inspection of Xugong Group construction machinery at the end of 2017 that we must always attach great importance to the development and growth of the real economy, and we must not follow the development path of single mode or being separated from the real economy. To develop the real economy, we must do a good job in the manufacturing industry. At present, we should especially focus on innovation-driven development, master the key technologies and use them well.To develop the real economy, our first task is to use structural policies to strengthen the attraction and competitiveness of the real economy as the 2017 Central Economic Work Conference said. The reason is very simple. If the real economy represented by manufacturing industry has been in a state of low profit or even loss for a long time, how could it arouse the interest of investment which is seeking profit?Fundamentally speaking, in order to stabilize asset prices and ease asset shortage, we should not suppress the development of virtual economy by administrative means, but form a virtuous circle between the real economy and finance. We can provide more investable physical assets to society by encouraging technological innovation. At the same time, we can provide more investable high-quality financial assets by accelerating financial innovation and improving capital market, so as to stabilize social demand for assets and the overall price level through additional supplies.
