The Tribune

By AMBASSADOR HU SHAN


Chinese Ambassador to the Bahamas

AT PRESENT, there are still a lot uncertainties in the international economy.

The Chinese economy, too, is facing some real problems such economic downward pressure and financial sector risks, et cetera.

How to further promote the country’s development has become the most important issue on the Chinese government’s agenda.

On June, 19, 2013, Chinese Premier Li Keqiang chaired a meeting of the Standing Committee of the State Council, mainly to study and decide on policies and measures designed to increase the financial sector’s support of the country’s economic restructuring, further emphasise the close relationship between finance and the real economy, and bring the promoting potential of the financial engine into full play in China’s economic transformation and upgrade.

At the meeting, it was pointed out that finance plays an important role in achieving steady growth and economic restructuring, promoting transformation, and improving the people’s well-being.

While maintaining the stability and continuity of China’s macro-economic policy, efforts should be made to promote reform in a step-by-step, orderly and non-stop manner, optimise allocation of financial resources with a good increment and revitalise the stock to better support economic transformation and upgrade, better serve real economy development, more pointedly promote expansion of domestic demand, and prevent financial risks.

The meeting identified eight measures:

• Direct credit funds to support the real economy

• Credit support leaning toward the agricultural sector and small and micro-sized enterprises

• Support Chinese enterprises’ “going abroad”

• Upgrade of consumption structure.

• Speed up the development of a multi-faceted capital market

• Bring the role of insurance into play

• Invite private capital to participate in restructuring financial industries

• Tightly guard against risks

The financial sector has demonstrated a distinct achievement in facilitating real economy development, promoting reform and transformation, maintaining financial stability, et cetera, since early this year.

And all-system financing aggregate posted 9.11 trillion yuan in the first five months of 2013, up 3.12 trillion yuan from the same period of last year.

While the all-system financing aggregate increasing rapidly, it must further play its role in promote development of real economy.

The “finance supports economic restructuring, transformation and upgrade” plan proposed at the State Council meeting is comprised of powerful measures to resolve difficult problems by targeting them precisely and propelling the Chinese economy to further development.