On Oct. 18th, the Fifth Western China Financial Forum opened in Chengdu, Sichuan Province. The forum attracted over 500 experts, scholars, and representatives from financial institutes and listed companies. Hao Zhou, Tsinghua University National Institute of Financial Research Deputy Head and Tinghua PBSCF Unigroup Chair Professor, addressed the main forum.
Prof. Zhou pointed out that the current challenge China’s finance confronting lied in its structure. The interbank market short-term interest rate is only 2.5%, basing on which bankers and regulators suggest the liquidity is ample, while the real economy and small and micro businesses feel the opposite. He believes that expanding money supply cannot solve the structural problems. According to historical experience, sustained monetary growth may not necessarily bring economic growth, but will certainly lead to inflation. Therefore, to address this problem, the economic system needs to be reformed.
Guests also exchanged ideas on “Finance Supports Western Economic Transformation”, “Structural Effects of Monetary Policy”, “Finance Serves the Real Economy”, “Retail Financial Innovation”, “Small Business Financial Services”, “The development of Western Capital Market”, “Insurance Management Mechanism Innovation” and “Western Financial Center Construction”. The new ideas and insights brought by the forum are of significance to the financial reform and development in Western China.
The Western China Financial Forum is hosted by the People's Bank of China, CBRC, CSRC and CIRC, and co-organized by Sichuan Provincial Government. It is the most important platform in Western China for financial policy research and publishing, as well as an important window for financial reform, openness and cooperation.
