Time to End ‘Dual-Track’ Reform
Jan 22-2019
The 132th NSD Policy Talk, a forum with the aim of generating policy inputs and suggestions, was held on January 18th to a packed audience. NSD Prof. Huang Yiping said that the negative impact of financial suppression was surfacing, and neither the households, nor the enterprises or the local governments were able to meet their investing or financing needs. He suggested ending the ‘dual-track’ reform tactic, which set different borrowing rates for SOEs and private firms. His other advice included pushing forward market-based rate-setting and resource allocation, encouraging financial innovations on the condition of controllable risk, embracing new tech and improving financial oversight and strengthening policy coordination. Prof. Huang is also NSD Deputy Dean and Director of PKU Digital Finance Research Center. The other speakers at the forum were: Mr. Wu Xiaoqiu, Vice President of Renmin University; Prof. Yao Yang, NSD Dean; Mr. Xu Gao, Chief Economist of Everbright Securities Asset Management; and Mr. Zhang Bin, Senior Researcher of China Finance 40 Forum.
