Advancing Chinese Modernization through Financial System Reform: Internal Logic, Core Requirements, and Key Priorities

Abstract

Finance has consistently played a pivotal role in the Chinese modernization and has become an indispensable core competitiveness for China’s economic development. It has played a significant role in promoting economic growth, stabilizing employment markets, and facilitating economic transformation. As the economy progresses, advancing financial system reform to adapt to and promote high-quality financial development has become imperative and urgent. Deepening financial system reform is not only a requirement for synchronizing financial development with Chinese modernization but also a key measure to overcome institutional and systemic barriers constraining high-quality financial development. In the context of Chinese modernization, the priorities for deepening financial system reform include upholding the centralized and unified leadership of the Central Committee of the Communist Party of China (CPC), improving the modern central banking system, establishing an efficient financial regulatory framework, developing the “Five Key Financial Areas” (i.e., sci-tech finance, green finance, inclusive finance, pension finance, and digital finance), harmonizing the investment and financing functions of capital markets, and advancing high-standard financial opening up. Through continuously deepening financial system reform, high-quality financial development can be elevated to a new level, thereby providing robust financial guarantee and abundant momentum for building a highstandard socialist market economy and serving Chinese modernization.

Keywords

financial system reform / Chinese modernization / financial powerhouse (nation with a strong financial sector) / financial stability

RIGHTS & PERMISSIONS

Higher Education Press