Xi stresses role of finance in serving real economy

BEIJING - Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, underscored that China should deepen supply-side structural reform in the financial sector and strengthen the sector's ability to serve the real economy.

Xi made the remarks when presiding over a group study session of the CPC Central Committee Political Bureau Friday afternoon.

The country should keep a fine balance between maintaining growth and forestalling risks and deal with risks in key areas in a targeted and effective manner, he said, adding that China should deepen opening-up of the financial sector.

Xie Duo, Party secretary and chairman of Silk Road Fund Co., Ltd, briefed on the issue and made suggestions.

Xi pointed out that finance is a core competitiveness of a country, financial security is an important part of national security, and the financial system is a major fundamental system in the process of economic and social development.

While historic achievements have been accomplished in the financial sector since reform and opening-up, the market structure, operation philosophy, innovation capability and the level of service of the sector have yet to meet the requirements for the country's high-quality economic development, Xi said.

The country should push for high-quality development of the sector with a focus on improving financial services and forestalling financial risks, he added.

He also stressed that finance should play its role in serving the real economy, catering to economic and social development while meeting the needs of the people, adding that the economy and finance are interdependent and should grow and thrive together.

To deepen supply-side structural reform in the financial sector, China should implement the new development philosophy and focus on key areas to allow the sector provide better services to the real economy and the people, he said.

Optimizing the financial system should be key, he said, urging improvements in the financing structure as well as in the systems of financial institutions, the market and products.

A multi-level banking system with wide coverage and diverse expertise should be established, while personalized and differentiated financial products that suit market demand should be developed, he said.

The number of small and medium-sized financial institutions as well as their proportion of businesses should be increased, while financial services to the small and micro firms as well as agriculture, rural areas and rural people should be improved, Xi said.