President Xi urges financial sector to better serve real economy

President Xi Jinping speaks at the National Financial Work Conference in Beijing July 15, 2017.[Photo/Xinhua]

BEIJING — Chinese President Xi Jinping urged the financial sector to better serve the real economy at a two-day National Financial Work Conference that ended Saturday.

Serving the real economy is the bounden duty and purpose of the financial sector and the fundamental way to guard against financial risks, Xi said.

The financial sector should improve service efficiency and quality and channel more resources into major and weak areas of economic and social development, he said.

Developing direct financing will be prioritized while indirect financing structure should be optimized by accelerating strategic transformation of state-owned major banks and developing small and medium-sized banks and private financial institutions, according to Xi.

Inclusive financing mechanism will be developed to improve support to small and-medium-sized enterprises and rural and remote places. Green financing is encouraged.

Xi also urged financial institutions to reduce operation costs and regulate intermediary services to avoid lifting real economy’s financing costs.

The conference has been convened every five years since 1997 and is widely considered to set the tone for financial reforms.