Journal Article: "Focus of Steadily Advancing the Construction of a Major Financial Power"

Title: Focus of Steadily Advancing the Construction of a Major Financial Power

Authors: Zhu Min, Huang Yiping, Li Daokui, Ding Zhijie, Guan Tao

Language: Chinese

Publication: International Economic Review, July 2024, No. 4, 1007-0974: 9-33

English Abstract: 

    The Central Financial Work Conference, held in October 2023, emphasized the need to accelerate the construction of a major financial power, promote high-quality financial development, and provide strong support for comprehensively pushing forward building of a great country and achievement of national rejuvenation through Chinese-style modernization. The conference also proposed to prioritize the development in five key areas: technology finance, green finance, inclusive finance, pension finance, and digital finance. First, the opportunity of zero-carbon financial innovation should be seized, and China should actively explore the unprecedented zero-carbon financial development models in human history and promote the construction of its zero-carbon financial system, thus best representing efforts to build a major financial power and pursue a financial development path with Chinese characteristics. Second, high-standard financial openness is the inevitable path to achieving high-quality financial development. International experiences show that major financial powers typically have open financial systems, currencies, and international financial centers. To enhance its international financial influence, China should strive to align its financial development path with international market systems, and maintain and enhance Hong Kong’s status as an international financial center to serve the construction of a major financial power in the mainland. Moreover, the internationalization of the RMB against the backdrop of building a major financial power is of greater strategic significance and serves as a powerful driving force for achieving Chinese-style modernization. Last but not least, in the construction of a major financial power, China must also address the key issues that hinder its economic development and prevent and resolve financial risks through expanding and strengthening the bond market, promoting a new round of fiscal and tax system reforms, unleashing the local enthusiasm in promoting economic development, and steadily advancing the construction of a major financial power.

Keywords: Major Financial Power; Zero Carbon Finance; Financial Openness; International Influence; Sovereign Debt Market; Renminbi Internationalization; Offshore Financial Risk