China issues 15th Five-Year Plan to build strong financial system, prioritizing real economy and risk control

The Financial Powerhouse Construction Plan for the 15th Five-Year Period has recently been officially released, providing a clear "blueprint" for building China into a financial powerhouse. The document not only deepens the implementation of the directives from the Central Financial Work Conference but also offers a systematic plan for financial reform and development over the next five years, grounded in the broader context of Chinese-style modernization. Its significance is far-reaching.

Finance is the lifeblood of the national economy and a key component of a country's core competitiveness. The document clearly addresses what finance should do during the 15th Five-Year period, how it should be done, and for whom. It sets the direction for basically establishing a modern financial system with Chinese characteristics that is highly adaptive, competitive, and inclusive. This helps align the course of financial work, consolidate efforts, and enable finance to better serve high-quality development.

Stay True to Fundamentals: Serving the Real Economy as a Fundamental Principle

Finance must not engage in self-circulation or arbitrage; rooting itself in the real economy is its foundation for survival. Efforts should continue to advance the five major areas of financial services: technology finance, green finance, inclusive finance, pension finance, and digital finance, precisely supporting the development of new productive forces.

• On one hand, improve the foundational systems of the capital market, increase the proportion of direct financing, and help technology enterprises achieve greater breakthroughs in core technologies.
• On the other hand, shift service focus downward, effectively alleviate financing difficulties for small and medium-sized enterprises (SMEs), empower rural revitalization, and ensure that financial resources are precisely channeled into key areas and weak links of economic development. This will foster a mutually reinforcing and synchronized relationship between finance and the real economy.

Guard the Bottom Line: Balancing Development and Security

Without a secure foundation, reform and development are impossible. A rigorous and robust modern financial regulatory system must be established, with clear responsibilities for all parties, strengthened central-local coordination, and steady progress in risk prevention and control in key areas.

• Closely monitor risk points such as local government debt, real estate, and small and medium-sized financial institutions, ensuring early identification, early warning, and early resolution.
• Improve the macro-control framework, maintain reasonable and ample liquidity, and enhance the forward-looking and coordinated nature of policies.
• Resolve existing risks and strictly control new risks through dynamic balance, building a "firewall" for financial security, and safeguarding overall stability with financial stability.

Deepen Reform: Enhancing Strength Through Openness and Innovation

Building a financial powerhouse cannot be achieved behind closed doors, nor by simply copying foreign models. It must follow a path with Chinese characteristics.

• Domestically: Continuously optimize the layout of financial institutions, guide various types of institutions to focus on their core businesses, improve modern financial infrastructure, and refine the wealth management system to better meet the public's reasonable demand for growth in property income.
• Internationally: Steadily expand institutional openness, deepen two-way opening of financial markets, and enhance China's voice in global financial governance. At the same time, always maintain independent control, safeguard the boundaries of openness, and ensure that the system can be opened up, managed effectively, and operated steadily.

Only by aligning reform and opening-up efforts can the resilience and competitiveness of the financial system be continuously enhanced.

Moving into the 15th Five-Year Period

All financial institutions should proactively align with the Plan and advance tasks step by step. They must be bold in experimentation, actively resolving institutional and operational bottlenecks, while also maintaining strategic focus and perseverance to continuously consolidate the foundation of a financial powerhouse.