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FinTech Prioritized in Central Financial Work Conference

Dec 22-2023   



In a media commentary, Prof. Huang Zhuo and his co-author Zhang Xiaodong said that the Central Financial Work Conference, held on October 30 and 31, put forth a major strategy that clarifies the direction for financial development and lays out action plans for the finance sector to support the real economy. Prof. Huang is NSD Assistant Dean and Associate Professor, as well as Deputy Dean of PKU Changsha Institute for Computing and Digital Economy (ICODE). Zhang Xiaodong is Assistant Researcher of ICODE.

 

The authors observed that although historically the conference has been held against different economic backgrounds and featured different policy focus, the commonality lies in strengthening the collective and unified leadership of the CCP Central Committee in financial work, firming up the role of financial services in meeting the needs of the real economy, and effectively preventing and defusing financial risks. The recent conference continued to uphold these dominant principles and set the tone to seek progress on the basis of prudence.

 

The conference outlined steps to achieve sound development in FinTech, green finance, inclusive finance, pension finance, and digital finance. The authors believed that FinTech, being prioritized in the planning, holds the potential to effectively help tech firms to address financing needs, which in turn will facilitate tech innovations that are crucial for driving high-quality development.

 

By the end of September, 2023, China’s small and medium-sized tech firms had a loan balance of 2.42 trillion yuan, a year-on-year hike of 22.6%, much higher than common loans. At the same time, the formation of a multi-layered capital market has amplified the functions to cater to the financing needs of tech firms.

 

However, the authors noted that as FinTech fuels tech innovations, some problems need to be tackled, including insufficient direct financing, lack of loan product innovations, and limited role of technology in insurance. The Central Financial Work Conference clearly set the direction to solve the issues. Measures encompass consolidating and deepening the stock issuance registration system, developing diverse equity financing, supporting large SOE financial institutions to become better and stronger, sparking the vitality of small and medium-sized financial institutions, and increasing policy support for tech-powered insurance.

FinTech Prioritized in Central Financial Work Conference

Dec 22-2023   



In a media commentary, Prof. Huang Zhuo and his co-author Zhang Xiaodong said that the Central Financial Work Conference, held on October 30 and 31, put forth a major strategy that clarifies the direction for financial development and lays out action plans for the finance sector to support the real economy. Prof. Huang is NSD Assistant Dean and Associate Professor, as well as Deputy Dean of PKU Changsha Institute for Computing and Digital Economy (ICODE). Zhang Xiaodong is Assistant Researcher of ICODE.

 

The authors observed that although historically the conference has been held against different economic backgrounds and featured different policy focus, the commonality lies in strengthening the collective and unified leadership of the CCP Central Committee in financial work, firming up the role of financial services in meeting the needs of the real economy, and effectively preventing and defusing financial risks. The recent conference continued to uphold these dominant principles and set the tone to seek progress on the basis of prudence.

 

The conference outlined steps to achieve sound development in FinTech, green finance, inclusive finance, pension finance, and digital finance. The authors believed that FinTech, being prioritized in the planning, holds the potential to effectively help tech firms to address financing needs, which in turn will facilitate tech innovations that are crucial for driving high-quality development.

 

By the end of September, 2023, China’s small and medium-sized tech firms had a loan balance of 2.42 trillion yuan, a year-on-year hike of 22.6%, much higher than common loans. At the same time, the formation of a multi-layered capital market has amplified the functions to cater to the financing needs of tech firms.

 

However, the authors noted that as FinTech fuels tech innovations, some problems need to be tackled, including insufficient direct financing, lack of loan product innovations, and limited role of technology in insurance. The Central Financial Work Conference clearly set the direction to solve the issues. Measures encompass consolidating and deepening the stock issuance registration system, developing diverse equity financing, supporting large SOE financial institutions to become better and stronger, sparking the vitality of small and medium-sized financial institutions, and increasing policy support for tech-powered insurance.