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Wu Xiaoqiu: China’s construction of a financial power should reflect Chinese characteristics

Wu Xiaoqiu: China’s construction of a financial power should reflect Chinese characteristics


Wu Xiaoqiu, a national first-level professor and dean of the National Institute of Financial Research at Renmin University of China, said at the “State Forum: 2024 Annual Conference” held on the 18th that China should follow the Chinese path and embody Chinese characteristics in building a financial power.

On January 18, Wu Xiaoqiu, a national first-level professor and director of the National Institute of Financial Research at Renmin University of China, delivered a speech at the “State Forum: 2024 Annual Conference”.Photo by reporter Cui Nan

Wu Xiaoqiu said that financial power is a very ambitious goal, involving a country’s soft power and comprehensive credit capabilities. It not only requires endogenous capital to have confidence in China’s economy, finance and future, but also requires international capital to have full trust in China’s finance. Invest in China. There are only two countries in history that can be called financial powers, one is the United Kingdom in the past, and the other is the United States today. I believe that after arduous exploration, unswervingly following the path of economic development with Chinese characteristics, and unswervingly advancing reform and opening up, China will definitely be the third financial power in the world in the future.

Wu Xiaoqiu said that China’s construction of a financial power should be realized on the basis of China’s national conditions and China’s development goals, as well as culture, laws, and systems. It should follow the Chinese path and reflect Chinese characteristics. These characteristics include: first, the Party’s centralized leadership of finance; The second is to vigorously develop inclusive finance. In the process of financial reform and development, China has always attached great importance to inclusive finance, because finance not only serves large enterprises and the rich, but more importantly, serves small, medium and micro enterprises and low- and middle-income people. Class services, the needs of the latter are diversified. In the process of building a financial power, China must meet the diversified needs of the real economy, residents and investment through market-oriented reforms; third, finance must take the road of scientific and technological innovation. For a long time, China’s financial development has benefited from the empowerment of technology. The combination of technology and finance can greatly improve financial efficiency, because it can solve credit identification problems that traditional finance cannot solve and improve risk identification capabilities.

Wu Xiaoqiu further pointed out that realizing a financial power also requires embodying the common characteristics of a financial power and embodying the basic attributes and characteristics of a financial power recognized by the international community, which mainly include three points:

First, the finance of a financially powerful country must be highly market-oriented. Marketization is the logical starting point for realizing a financial power because marketization can promote financial structural reform and promote the diversification of financial and capital formats. In the process of realizing Chinese-style modernization, sustainable economic growth and an increase in residents’ income are the basic prerequisites. This process must be driven by innovation, technology, and modern finance. High-tech enterprises face great uncertainty and must use financial innovation and corresponding capital formats to incubate high-tech industries and promote China’s economic structural transformation and industrial upgrading and iteration.

Second, the finance of a financially powerful country must be governed by the rule of law. The essence of finance is a contract. Financial transactions are transactions based on contracts. The rule of law and the spirit of contract are very important and are also the source of market confidence. The rule of law and systems based on modern market economic principles are crucial to a country’s economic operations and financial activities because it can form good expectations. The rule of law is the cornerstone of achieving a strong financial country.

Third, the finance of a financial power must be internationalized. It cannot be closed; its currency must be freely tradable and an important international currency. How to improve RMB credit and promote RMB liberalization and internationalization is an important part of the international construction of a financial power.



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