During the ongoing two sessions, Yang Chengzhang, chief economist at Shenwan Hongyuan Securities and member of the 14th National Committee of the Chinese People’s Political Consultative Conference, emphasized the need for financial institutions to focus more on business innovation that meets real economy demands. Highlighting the necessity for a more comprehensive release of economic information, Yang’s insights aim to ensure the financial sector’s better service to real economy development and the formation of rational market expectations.
Charting a New Course for Financial Institutions
Yang underscored the importance of shifting financial institutions’ focus from merely financing to risk management and innovation, aligning closely with China’s major strategic needs. He pointed out the critical role of developing credit bonds, equity, trusts, and insurance to foster a diversified financial market system. This approach not only increases the proportion of direct financing but also creates a more favorable market ecology that attracts medium and long-term capital investment.
Enriching Economic Information Disclosure
To ensure the capital market’s stable operation in the long run, Yang stressed the significance of a rich supply of economic information. By involving more entities like universities, industry associations, and media in the economic information release process, Yang believes it can lead to the formation of reasonable long-term economic development expectations. He advocates for the regular release of high-quality data on private economy operations by the All-China Federation of Industry and Commerce, along with multi-dimensional data reflecting economic transformation’s new characteristics by research institutions and media. Additionally, Yang suggests the inclusion of more regional economic data and comprehensive consumption data to better reflect diverse economic development stages and new consumption trends.
Advancing Towards a Diversified Data Landscape
Yang’s recommendations extend to the broader release of service and private enterprise statistics, including monthly data on operating income, total profits, costs and expenses, assets, and liabilities under different ownership systems. Such an enriched data ecosystem would not only provide a clearer picture of China’s economic landscape but also support the crafting of more informed policies and investment strategies, driving forward the nation’s economic development in alignment with real-world demands and strategic goals.
Yang Chengzhang’s insights point towards a future where financial innovation and comprehensive economic data disclosure play pivotal roles in bridging the gap between the financial sector and the real economy. By focusing on risk management, exploring new opportunities, and enriching the economic information landscape, financial institutions can better serve the development of the real economy, fostering stable and rational market expectations that drive sustainable growth.