The Central Economic Work Conference held a few days ago stressed the need to understand the nature of capital and its law of behavior and urged giving play to the positive role of capital, as a kind of production factor, while effectively reining in its negative effects. This puts forward clear requirements for doing financial work well in the new era. Since the 18th National Congress of the Communist Party of China, the Party Central Committee has attached great importance to the role of finance in economic and social development, continued to deepen its understanding of the nature and laws of finance, and emphasized the return of finance to the origin of serving the real economy.
This article sorts out some of the policies and practical measures of the state to promote financial institutions to reduce fees since COVID-19, analyzes the importance of maintaining a reasonable balance in the distribution of benefits between the financial industry and the real economy, and summarizes the characteristics of interest distribution between China's banking industry and real economy. Finally, the article proposes to promote the formation of "three lines of defense" to realize the symbiosis of finance and real economy, namely, the formation of a red line for the profit ratio of industry and finance at the macro level; the formation of a red line for market concentration at the meso level; and the bottom line of profitability at the micro level. and explained them in detail.
