Finance shoulders the responsibility of improving national strength and competitiveness

Editor's note: Bruce Pang is the chief economist of JLL Greater China. The article reflects the author's opinions and not necessarily the views of CGTN. It has been translated from Chinese and edited for brevity and clarity.

At this critical period where profound shifts are taking place in the international landscapes, finance shoulders the prominent responsibility of bolstering high-quality development, supporting the stable upgrading of the real economy, and enhancing the nation's comprehensive strength and core competitiveness.

In advancing high-quality development, the focus should be on augmenting the expectations, confidence, willingness, and actionability of enterprises. Key projects, investment expansion, tech innovation, advanced manufacturing, and small and medium-sized enterprises should be targeted. Moreover, fintech, green finance, inclusive finance, and digital finance should be prioritized.

On these bases, efforts should be made to drive relevant entities to swiftly increase investment and long-term inputs, enhance the efficiency of production research and development, elevate product and service quality and competitiveness, broaden domestic and international markets, and facilitate capital and funds to support the real economy and innovation-driven development strategy.

Quantity of inputs should be reasonably expanded to support the promising and accelerating recovery of the real economy; quality of products and services should be optimized in a balanced way to further contribute to the high-quality development of the real economy; while efficiency of research and development should be improved to propel the transformation and upgrading of the real economy.

Listed companies are the cornerstone, main players, and excellent investment targets of the capital market, serving as the main force behind China's high-quality growth. Enhancing the quality of listed companies is an all-round, time-consuming battle, requiring strenuous efforts. It will reinforce the capital market's role as an economic barometer, and boost its function of serving the real economy to build a modern economic system.

It is imperative to address both the immediate issues and fundamental problems to establish a standardized, transparent, open, dynamic, and resilient capital market. It is essential to leverage on the complete reform of the registration-based system to further unify and improve the system with information disclosure at its core.

Efforts should be made to promote the establishment of companies' sound internal control systems, corporate governance structures, and social responsibility mechanisms; elevate the quality of information disclosure, corporate governance, and sustainability; strengthen the role of intermediary institutions as "gatekeepers" of the capital market.

Increment optimization must be combined with stock improvements to cultivate a healthy market ecology which advocates a virtuous cycle and survival of the fittest. The delisting system reform should be advanced, with enriched and refined delisting standards, streamlined and optimized delisting processes, and rigorously implemented mandatory delisting mechanisms.

This will significantly build up the executability and deferrability of the delisting mechanism. Mandatory delisting caused by major violations, delisting due to mergers by absorption, and voluntary delisting by listed companies should be integrated to accelerate the normalized delisting mechanism to take effect, and maintain and facilitate a favorable market environment and order.

In terms of prudent monetary policy, there is still room for moderate easing and reasonable growth in money supply and total social financing. As overall financing costs of enterprises and consumer credit remain stable, there is also space for further reduction. In addition, structural, policy-oriented, and developmental financial instruments have the potential to better serve high-quality development. 

It is anticipated that monetary policy will maintain its targeted, precise, and sustained efforts along a robust trajectory of maintaining reasonable and sufficient monetary conditions, effectively ensuring rational and adequate liquidity.

By resolutely promoting financial reform and development, we can continue to safeguard financial security and prevent financial risks. It is conducive to the operational stability of China's financial industry and the competitiveness of products and services, while revitalizing existing financial resources and accumulating incremental resources. It can better meet society's needs for diverse, comprehensive, and convenient financial services.

The ability to serve the real economy and high-quality economic development can be enhanced based on enriched and upgraded financial services. An open, inclusive, and highly competitive financial environment can be fostered, with optimized resource allocation, innovation encouraged to the fullest extent, and improved resource allocation efficiency.

Thus, we can continuously tap into the potential, optimize the dynamics, and unleash growth drivers for Chinese modernization through building a nation with a strong financial sector.