FinancialViews

Zhou Xiaochuan: Financial services and financial markets should be closely linked to the real economy
June 15,2021

  At the 13th Lujiazui Forum held on June 11, Zhou Xiaochuan, Vice Chairman and Chief Representative of China to the Boao Forum for Asia and President of China Society for Finance and Banking, said that China places much emphasis on the role of the financial sector in serving the real economy, and financial services and financial markets should be closely linked to the real economy.

  Zhou said that many people think that other countries have similar statements, which is not the case. In fact, the statement that the financial sector should serve the real economy is not commonly made by other countries in the world. Nor is particularly emphasized to maintain a close relationship between the financial sector and the real economy. It is therefore necessary to make the comparison and have some background information.

  Zhou pointed out that the term “real economy” is frequently referred toon many occasions in China, but is rarely used in other countries. In terms of policy making and statements, the term “real economy” rarely appears in financial policy statements. However, from China's perspective, one of the reasons for the outbreak of the latest global financial crisis was that some over-speculative derivatives were too disconnected from the real economy. That’s why during the period from 2010 to 2012, the Central Economic Work Conference repeatedly emphasized that the financial sector should serve the real economy.And China has been doing a prominent job in linking the financial sector with the real economy.