China’s senior-most government economist has emphasised the need for education and guidance of the country’s investing public during a key speech delivered at an official meeting on “Improving Systemic Financial Risk Prevention” (健全系统性金融风险防范体系) held in Beijing on 15 May.
Liu He (刘鹤), director of the General Office serving the Central Financial and Economic Affairs Commission of the Communist Party of China, said at the meeting that China had made significant progress in the development of the financial regulatory system and the disposal of financial risk since the 19th National CCP Congress in October last year, as well as markedly accelerated the pace of financial sector opening.
With regard to China’s general investing public, Liu called for “establishing behavioural restraints and psychological guidance…to ensure that all of society understands that doing business means having capital, borrowing money means making repayments, investment means undertaking risk, and doing bad things means paying a price.”
According to Liu China needs to “make servicing the real economy the starting and end points of financial work, achieve an effective integration of stable and neutral monetary policy and strict regulatory policies, and expedite the high-quality growth of the economy.”
He also pointed to the need to “firmly address financial irregularities, supplement systemic shortcomings, improve financial infrastructure, reform and optimise the financial system, strengthen the development of cadre teams, establish risk prevention and dissolution accountability systems and firmly punish corruption.”