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Economy

Growth of capital expected to get boost

Updated: May 5, 2022 By ZHOU LANXU and CHENG YU China Daily Print
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A photo shows the view of CBD area in downtown Beijing. [Photo/Sipa]

The emphasis on capital development by China's top leadership has signaled that concerted efforts are likely to boost the growth of all types of capital in a well-regulated manner, experts said on Wednesday.

Such efforts will enhance the confidence of business owners and investors, helping get the Chinese economy through the current headwinds and strengthening the foundations of high-quality development, they said.

Their comments came after Xi Jinping, general secretary of the Communist Party of China Central Committee, called for efforts on Friday to regulate and guide the healthy development of capital when addressing a group study session of the Political Bureau of the CPC Central Committee.

It is necessary to stimulate the vitality of all types of capital, including nonpublic capital, and give full play to its positive role in promoting scientific and technological progress, boosting the market economy, facilitating people's lives and participating in international competition, Xi said.

While stressing that capital is a major factor of production in the socialist market economy, Xi said one must be well aware that profit-seeking, as capital's intrinsic nature, must be subject to regulation and constraints.

To regulate and guide capital development, China will improve the laws related to its development, creating a well-structured, consistent and complete framework of rules, Xi said.

At another meeting of the Political Bureau of the CPC Central Committee on Friday, the Party's core leadership decided that efforts should be made to boost the healthy growth of the platform economy and maintain the stability of the nation's capital market.

"Recent policy developments clearly signaled that the country remains supportive of the aspects of the platform economy and capital expansion that are conducive to high-quality economic development," said Wang Peng, an associate professor with Hillhouse Academy of Renmin University of China in Beijing.

Risks embedded in these areas, meanwhile, are expected to be addressed in a regular manner that reduces one-size-fits-all approaches and campaign-style restrictions, Wang said.

"All these will give a boost to relevant industries and capital market confidence, promoting a recovery of the Chinese economy," he said.

Liu Chunsheng, an associate professor at the Central University of Finance and Economics, said the nation is expected to step up coordinated efforts to create a more predictable regulatory framework for capital expansion featuring a greater role for market mechanisms and the rule of law.

The People's Bank of China, the country's central bank, said in a statement on Wednesday that it would improve its capital governance capacity and implement regular supervision of platform enterprises' financial activities to promote the regulated and healthy development of the platform economy.

Liu added that the top leadership's reiteration of China's advocacy of private capital will also help bolster the confidence of investors and business leaders amid growing economic downside risks.

Xi noted at the study session that unswervingly consolidating and developing the public sector while encouraging, supporting and guiding the development of the nonpublic sector has been established as a part of the major principles and policies of the Party and the nation.

Xi also emphasized the need to deepen capital market reform, improve the protection of property rights and strictly handle corruption-related activities behind the disorderly expansion of capital and platform monopolies.

Wang Tian, chairman of retail and real estate company Better Life Group, said China's regulations on unfair competition and the disorderly expansion of capital have provided law-abiding enterprises with broad development opportunities, driving the efficiency of private companies as well as the market economy.

Xinhua contributed to this story.

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