Shen Kunrong & Zhao Liang: Resolving the Issues of "Distracting from Real Economy to Virtual Economy "and "Idle Capitals" through Multiple Strategies

Release time:2018-07-03Author: Shen Kunrong & Zhao Liang

China's economy is shifting from a stage of rapid growth to a stage of high-quality development. However, the unbalanced development of the financial market leads to " distracting from real economy to virtual economy" and "idle capitals" and other "financial chaos". Therefore, it is necessary to accelerate the pace of the construction of financial market from the following three aspects: balancing the social financing structure, creating a sound financial ecology, and strictly preventing and controlling financial risks. In terms of action, we need to build the "four major systems":We should accelerate the development of a multi-tiered capital market and establish a multi-financing system. We should support the coordinated development of financial entities and improve the financial organizational system. We should carry out the idea of marketization and cultivate a healthy ecological system of government and finance. We should deepen "penetrating oversight" and build a comprehensive financial regulatory system.