Finance must serve economy, not exploit it

President Xi Jinping's speech at the Fourth Plenum in Beijing last month outlined the guidelines for the upcoming 15th Five-Year Plan (2026-2030).

- ANDREW SHENG

There was clear determination to focus on technological self-reliance, building a "high quality productive forces" economic model based on innovation and strong industrial base that would be resilient against external threats and headwinds.

At the Beijing Finance Street Forum at the end of October, Vice Premier He Lifeng stressed the need for China's financial system to advance risk prevention, strengthen regulation, promote high-quality development and push for high-standard opening-up. Since the 15th Five-Year Plan period (2026-2030) will be a key period for basically achieving socialist modernization by 2035, a high-quality productive real economy model will require high-quality financial development, demanding an equally strong financial sector. Foreign visitors to the Forum welcomed the announcement that China would continue to open up her financial sector to foreign participation.

During the Forum, all top financial leaders, including People's Bank Governor Pan Gongsheng, National Financial Regulatory Administration Minister Li Yunze and China Securities Regulatory Commission Chairman Wu Qing, outlined measures to improve macro-prudential regulation, make the financial system more inclusive and supportive of high-quality growth, whilst emphasizing appropriate risk management and financial stability.

The Plenum Communique set the guiding principles for the 15th Five-Year Plan very clearly. The Party is firmly in charge of leading and implementation; putting the people first; pursuing high-quality development; comprehensively deepening reform; promoting interplay between an efficient market and a well-functioning government; and ensuring both development and security.