Xi stresses boosting high-quality development of China's financial sector

General Secretary of the Communist Party of China (CPC) Central Committee Xi Jinping, also Chinese president and chairman of the Central Military Commission, addresses the opening of a study session on boosting the high-quality development of the financial sector, attended by principal officials at the provincial and ministerial levels, at the Party School of the CPC Central Committee (National Academy of Governance) in Beijing, capital of China, Jan. 16, 2024. [Xinhua/Ju Peng]

BEIJING -- Chinese President Xi Jinping on Tuesday stressed staying committed to the path of financial development with Chinese characteristics and boosting the high-quality development of the financial sector.

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).

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 at the study session attended by principal officials at the provincial and ministerial levels.

He called for firming up confidence and making sustained exploration and improvement to further broaden this path.

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.

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, Xi said.

The country has accumulated valuable experience and gradually formed a path of financial development with Chinese characteristics, Xi said.

The path adheres to the centralized and unified leadership of the CPC Central Committee over the financial work and adopts a people-centered approach, according to Xi.

It sticks to the fundamental purpose of serving the real economy, and takes preventing and controlling risks as the eternal theme of financial work, Xi said.

The path also follows the principles of promoting financial innovation and development on the track 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.

Xi noted that a financially robust country should be based on a strong economic foundation, possessing leading economic, scientific, technological and overall national strength in the world.

At the same time, a country with great financial strength should also boast 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, and a strong financial talent pool, he said.

To strengthen China's financial capabilities, Xi urged efforts to accelerate the building of a modern financial system with Chinese characteristics, and establish and improve a scientific and prudent financial regulation system, a reasonably structured financial market system, a financial institution system with division of tasks and collaboration, a complete and effective financial oversight system, a diversified and professional financial product and service system, and an independent, controllable, safe and efficient financial infrastructure system.

He emphasized efforts to prevent and defuse 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.

By boosting opening-up, China will work to enhance the efficiency and capability of financial resource allocation, improve global competitiveness and rule-making influence, and maintain a steady and prudent rhythm and intensity, he said.

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, fewer 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 Belt and Road cooperation, he said.

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 and cultivate a financial culture with Chinese characteristics, he said.

Such a culture adheres to the following principles: being honest and trustworthy; seeking gains through righteous approaches and avoiding a single-minded focus on profit; maintaining prudence and caution in work without succumbing to the lure of quick success; preventing funds from being diverted out of the real economy; ensuring compliance with laws and regulations, and refraining from reckless actions.

Cai Qi said that it is important to deeply understand and grasp the rich connotations of Xi's important words and align thoughts and actions with the decisions and arrangements of the CPC Central Committee. 

General Secretary of the Communist Party of China (CPC) Central Committee Xi Jinping, also Chinese president and chairman of the Central Military Commission, addresses the opening of a study session on boosting the high-quality development of the financial sector, attended by principal officials at the provincial and ministerial levels, at the Party School of the CPC Central Committee (National Academy of Governance) in Beijing, capital of China, Jan. 16, 2024.

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. [Xinhua/Shen Hong]