The central economic work conference pointed out: We must have a good understanding of the defining features of capital and the way it works. This paper summarizes the four characteristics of capital, namely, profit seeking, accumulation, expansion and liquidity, makes an objective analysis of the impact of these characteristics from both positive and negative aspects, affirms the positive role of these capital characteristics, and makes an in-depth analysis of some possible problems. Finally, it puts forward that in the process of improving the socialist market economy, we should not only regulate the behavior of capital itself, but also regulate the external environment of vicious expansion of capital, give full play to the advantages of capital-driven development, curb its possible disadvantages and avoid its possible risks.
