Thread by @ChinaFinance40

In 2020, China proposed the new development pattern based on “#dual_circulation” with domestic and international markets reinforcing each other. According to Zhao Changwen, such a pattern will need an innovation-friendly financial system: new.cf40.org.cn/uploads/202010… 1/6

First, an innovation-friendly financial system should be able to help the country seize the opportunities brought by the new round of technological revolution or industrial revolution. 2/6

Second, an innovation-friendly financial system under the “dual circulation” strategy should be able to help resolve three imbalances in economic structure, that is, imbalance between supply and demand in real economy, … 3/6

… imbalance between finance and real economy and imbalance between real estate market and real economy. 4/6

Third, an innovation-friendly financial system should be able to motivate micro-entities, that is, to meet their financing demand, rather than inhibiting their vitality. 5/6

At present, the risks faced by the banking system largely come from enterprises. The financial system will become healthier once internal financing dominates in corporate financing structure. 6/6