MORE INSTITUTIONAL SUPPORT

Serving the real economy and fending off financial risks rely on deepening financial reform and opening up for institutional support, said the State Council's financial stability and development committee during its 10th meeting in November.

The capital market reform is a highlight of China's endeavors to improve the financial system where the upcoming adoption of a registration-based IPO system and the now piloting spin-off listings are expected to improve the quality of listed companies.

Meanwhile, China's financial opening-up efforts, especially measures to pilot the cross-border transfer of non-performing debts, have paved the way for foreign capital to enter the country's non-performing asset industry and help free up more credit for small and micro enterprises and the private sector.

The country's real economy is benefiting from endeavors to optimize the financial system, with newly added social financing in the first 11 months rising 3.43 trillion yuan from the same period in 2018.

The October tone-setting fourth plenary session of the 19th Central Committee of the Communist Party of China urged the establishment of a modern financial system featuring high adaptability, competitiveness and inclusiveness, as well as an institutional shield against financial risks.

In a modern financial system, risks can be discovered, diverted or prevented in time, said Guan Tao, former spokesman of the State Administration of Foreign Exchange.