People's Daily Publication: Letting Finance Return to Serving the Entity of the Entity

Abstract Some scholars have asked why the small city states in northern Italy developed into the center of the Renaissance in the 14th and 16th centuries. At that time, how could the Netherlands be able to withstand the powerful force of Spain as a "small country"? Why did Britain become an industrial revolution...
Some scholars have asked why the small city states in northern Italy developed into the center of the Renaissance in the 14th and 16th centuries. At that time, how could the Netherlands be able to withstand the powerful force of Spain as a "small country"? Why did Britain become the cradle of the industrial revolution? After delving into history, he came to an intriguing conclusion: an important factor is finance. "The world is a financial history." Although similar claims are biased, they also point out the importance of finance for economic development.
However, finance is also a "double-edged sword." Twenty years ago, the currencies of many Asian economies, such as the overthrow of dominoes, have generally depreciated. The financial crisis that swept through Asia is still a memory that many countries cannot afford to fade away. Nearly 10 years ago, the US subprime mortgage crisis was the trigger. Financial institutions that have "big but not fallen" have crashed into the ground. The financial crisis has spread to the whole world. Until today, the world economy is still in a sub-health state. This is a profound feeling of the "double-edged sword effect" of finance. How to make financial services economic development, but also effectively prevent financial risks, test the governance wisdom of each country.
"Finance is the blood of the real economy, serving the real economy is the duty of finance, the purpose of finance, and the fundamental measure to prevent financial risks." General Secretary Xi Jinping's assertion at the National Financial Work Conference pointed out the healthy development of the financial industry. The fundamental idea has a distinct sense of the times and the meaning of the world.
In recent years, the proportion of China's financial industry's added value to GDP has increased year by year. According to statistics, the financial industry has become a pillar industry in 28 provinces (autonomous regions and municipalities), and the GDP growth rate of 12 provinces (autonomous regions and municipalities) exceeds 1%. However, the overheated development of the financial industry has also brought about some problems, such as improper allocation of resources, the “deployment of funds” and the increase in potential risks. On the contrary, the real economy, which is the foundation and lifeblood of the national economy, has a bottleneck in its development. It is mainly reflected in the difficulty of corporate financing, high financing costs, weak anti-risk ability, and slow development of small and micro enterprises.
If a country wants to maintain long-term economic competitiveness and strong overall national strength, it must consolidate the real economy. At present, the international political and economic environment is complex and changeable. After the international financial crisis in 2008, all countries have put the real economy into a strategically vigorous development. For China, to enlarge and strengthen the real economy, lay a solid foundation and improve the quality of the economy is the best choice for stabilizing growth, restructuring, and promoting development. From this perspective, continuously lowering the threshold and cost of financing in the real economy and letting the financial living water better water the real economy is not only the fundamental choice for making the “cake” bigger and stronger, but also the only way to prevent financial risks. It can be said that only by returning to the source and serving the real economy wholeheartedly can we reflect the true value of finance as the "blood" of the economy.
To get financial back to the source, we need to play a "synergy effect." For financial regulators, we should speed up the improvement of the financial supervision system and consolidate the weak links in financial supervision; for all levels of government, we should improve the legal mechanism and increase the cost of malicious violations; for financial enterprises, we should improve the company. Governance, effectively improve the performance of the board of directors, the board of supervisors, and the level of decision-making supervision, and enhance internal management capabilities; for the entity, on the one hand, we must work hard to adapt to the supply-side structural reform, strengthen innovation, enhance core competitiveness, and On the one hand, we must also actively connect with the financial market, give full play to the financial advantages, and help enterprises to become bigger and stronger.
If the entity is strong, then the country is strong; if the economy is stable, then the economy is stable. China is developed by the real economy, and it will certainly rely on the real economy to move toward the future. We will implement the spirit of the important speech delivered by General Secretary Jin Ping at the National Financial Work Conference, improve the efficiency and level of the financial services entity economy, promote a virtuous cycle of economic and financial development, and develop healthily. We will be able to make finance better for our economy. Escort.

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