Financing the real economy

That the evolution of the supply side lags behind that of the demand side is the hard nut to crack for China's economy to develop in a healthy manner.

This is true for the financial industry, which is supposed to provide financial service to the real economy in an efficient manner, as the weekend National Financial Work Conference has noted. However, it has long been difficult for small and medium-sized enterprises to get funds from financial institutions.

When it comes to providing loans or other financial services, financial institutions need to work out ways to make sure their loans go to where the money is really needed and where the money will make a difference to the production of needed products.