10 measures proposed by Zhang Xiaohui, former assistant governor of the #PBC, to promote the #dualcirculation in financial services: mp.weixin.qq.com/s/tErN3tDdScZR…
1. Properly position the financial sector against the new backdrop featuring “dual circulation”. China’s financial system needs to step up a new wave of upgrade and reform. It should give direct #financing a bigger play based on technological innovations.
2. Financial supply-side structural reform shall continue to play a core role. China needs to improve twin-pillar regulatory framework (monetary¯oprudential policies) and make monetary policies more flexible; develop multi-tier capital market; boost #RMB internationalization.
3. Improve the cross-cycle design and adjustments of macro regulations. Short-term policies should be soundly aligned with those in the mid-to-long run, and policy magnitude and pace must be properly controlled.
4. Repair balance sheets, and guard against the tendency to use the #realestate sector as a means to boost short-run economic growth.
5. Promote institutional financial opening. The key is to do it in a market- &law-based way. Learn rules and engage in the rule-making process.
6. Implement the institutional negative list management system.
7. Promote more use of #RMB in international settlements and transactions.
8. Enhance basic institutional arrangements to improve the Chinese #capital market.
9. Provide the much-needed #equity financing for #SMEs by allowing commercial banks to do equity investments in SMEs.
10. Promote the development of #pensions and improve pension plans.
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