China is committed to improving its investment and market environment, accelerating opening up to the outside world and lower operating costs, according to a Monday meeting of China's Central Leading Group on Finance and Economic Affairs.
"With the internationalization of Chinese currency, the world's second largest economy will further open up its financial market to provide more public goods on global market, partly replacing prior functions of western powers," Bao said.
China sees guarding against systemic financial risks as the eternal theme of financial work, announcing it will set up a committee under the State Council to oversee financial stability and development during the National Financial Work Conference that wrapped up on Saturday.
China is attaching great importance to financial stability and promoting financial work to enhance the country's competitiveness, said Bao, stressing that the financial stability has a strategic importance for the country.
Local governments are also guided to control debt growth, crack down upon financial irregularities and improve supervision on Internet finance at the conference.
"Such risk-elimination policies will definitely stabilize the Chinese and global financial systems in the context of financial interdependence between China and the world as a whole," said Ou.
REAL ECONOMY SET IN PROMINENCE
China's National Financial Work Conference impressed analysts of its emphasis on pushing financial sectors to serve the real economy.
The conference stressed that serving the real economy is the duty and purpose of the financial sectors and the fundamental way to guard against financial risks.
"The continuous improvement of financial service efficiency and quality will make it less expensive for business to borrow and give an impulse to entrepreneurship and innovations," said Ou.
The conference also called on financial sectors to channel more resources into both major and weak domains of economic and social development.
Ou said if the financial industry develops too fast to match the real economy, the finance sectors would risk crashing into nothing, citing Iceland as an example, "Icelander put down harpoon and take up finance."
The country had formidable international reach because of an outsized banking sector. However, the banking sector collapse finally brought down the country's economy.
Financial innovation has increased opportunities and lowered investment costs but innovation has at times made the financial system riskier.
Ou said that innovation may develop away from real economy even out of fundamental principles of finance, which can be very disruptive to global financial system.
"Other policy makers need to draw from China to take a balanced view on financial innovation," Ou told Xinhua. "The global finance is more like a network in which everything is connected to everything else and China with its increasing stability will play a bigger role in center of the stage."
