Analyst: China still needs more economic reforms
China should accelerate reforms in capital markets to further vitalize the economy, Gan Chunhui, director of the Institute of Applied Economics under the Shanghai Academy of Social Sciences, told a forum yesterday.
“China has seen quite some wrong allocations of capital resources,” said Gan during an SASS forum to commemorate the 40th anniversary of China’s reform and opening-up.
“Banks, trying to reduce risks, are inclined to lend money to big companies, which are not really in eager demand of capital.”
Gan urged China to establish a better financial system and let small private companies, which are important engines for the country's swift economic growth, get needed capital more easily.
China has announced a slew of policies to support the private economy. During a meeting with private entrepreneurs in November, President Xi Jinping promised favorable taxation and bailout funds, equal treatment of the private and public sectors and guaranteed protection for personal and property rights.
The SASS, which is celebrating its 60th anniversary this year, has set up an office to broadcast its research achievements. As an important think tank in the country, SASS produced a slew of books to analyze China's practices in reform and opening up.