A senior official from the People’s Bank of China (PBOC) has flagged the launch of further measures to support the development of domestic capital markets.
Zhou Chengjun (周诚君), head of PBOC’s Financial Research Institute (中国人民银行金融研究所), said that China would “drive commercial banks to participate more directly in the process of converting savings into investments and the formation of capital.”
“[We] must objectively face the fact that banks have occupied a dominant position in China’s financial system over the long-term,” said Zhou, during a speech delivered at the 11th Caixin Summit in Beijing on 14 November.
Zhou called for the “vigorous development of direct financing…because direct financing is more efficient than indirect financing in the conversion of savings into investment.”
“Especially in the current era of digitisation, we should encourage more savings to support innovation and national digital transformation via direct financing methods,” said Zhou.
