Key takeaways from Xi's speech on high-quality financial development at top Party school
Xi underscored embarking on a path of financial development with Chinese characteristics.
Chinese President Xi Jinping on Tuesday elaborated on his thought of exploring a path of financial development with Chinese characteristics in a special lecture dedicated to the country's key officials at the provincial and ministerial levels.
Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, made the remarks while addressing the opening of a study session at the Party School of the CPC Central Committee (National Academy of Governance).
Chinese Path of Financial DevelopmentÂ
While abiding by the objective laws of modern financial development, the path of financial development with Chinese characteristics enjoys features that better suit China's national conditions and is fundamentally different from the Western financial model, Xi said.
He called for firming up confidence and making sustained exploration and improvement to further broaden this path.
Since the 18th CPC National Congress, efforts have been made to constantly deepen the understanding of the essence of socialist finance with Chinese characteristics, and promote financial innovations in terms of practice, theories and institution.
The country has accumulated valuable experience and gradually formed a path of financial development with Chinese characteristics.
The path adheres to the centralized and unified leadership of the CPC Central Committee over the financial work and adopts a people-centered approach.
It sticks to the fundamental purpose of serving the real economy, and takes preventing and defusing risks as the eternal theme of financial work.
The path follows the principles of promoting financial innovation and development on the path of marketization and rule of law, deepening supply-side structural reform of the financial sector, coordinating financial opening-up and security, and seeking progress while maintaining stability.
Foundation of Financially Robust Country
Xi noted that a financially robust country should be grounded in a strong economic foundation, possessing leading global economic, scientific, technological and overall national strength.
At the same time, a country with great financial strength should also own a series of key core financial elements, namely,
a strong currency
a strong central bank
strong financial institutions
strong international financial centers
strong financial supervision and regulation
a strong team of financial talents
To strengthen China's financial capabilities, more efforts should be made to accelerate the building of a modern financial system with Chinese characteristics.
China should establish and improve a scientific and prudent financial regulation system, a reasonably structured financial market system, a financial institution system with division of tasks yet smooth cooperation, a complete and effective financial supervision and regulation system, a diversified and professional financial product and service system, and an independent, controllable, safe and efficient financial infrastructure system.
Strict Oversight
Xi emphasized the importance of efforts to prevent and resolve financial risks, especially systemic risks.
Financial oversight needs to have "teeth and thorns" and be sharp-pointed, he said, adding that law enforcement should be strict in market access, prudential oversight and behavioral regulation.
Financial Opening-up
By boosting opening-up, China will work to enhance the efficiency and capability of financial resource allocation, and improve global competitiveness and regulatory influence, while maintaining a steady and prudent rhythm and intensity.
It is necessary to promote high-level financial opening-up by focusing on institutional opening-up, and implement the pre-establishment national treatment plus negative list management system, he noted.
Xi stressed alignment with financial rules in global high-level economic and trade agreements, less restrictive measures, and better transparency, stability and predictability of opening-up policies.
More should be done to regulate overseas investment and financing activities and improve financial support for the joint construction of the Belt and Road, he said.
Combination of Rule of Law, Virtue
In order to boost the country's financial strength, it is important to adhere to the combination of the rule of law and the rule of virtue, Xi noted. He went on to add that cultivating a financial culture with Chinese characteristics involves adhering to the following principles:
honesty and trustworthiness without crossing the bottom line;
avoiding gains at the expense of moral principles and steering clear of a single-minded focus on profit;
maintaining prudence and caution in work without succumbing to the lure of quick success;
upholding fundamental principles while exploring new avenues;
preventing the diversion of capital from the real economy;
ensuring compliance with laws and regulations, and refraining from reckless actions
Members of the Standing Committee of the Political Bureau of the CPC Central Committee Zhao Leji, Wang Huning, Ding Xuexiang and Li Xi, as well as Vice President Han Zheng, attended the opening ceremony of the study session.
Cai Qi, a member of the Standing Committee of the Political Bureau of the CPC Central Committee, presided over the event.
Cai said that it is important to deeply understand and grasp the rich connotations of Xi's important words so that thoughts and actions are aligned with the decisions and arrangements of the CPC Central Committee.