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Midterm Review of the 2022 Jingshan Report: The Role and Path of Finance in Support of Common Prosperity

China has made great progress towards common prosperity, yet it also faces many challenges. In this process, finance can play an active part by expanding the share of middle-income groups and raising the income of low-income groups. However, its role is limited and requires the synergy of multiple players to build an underlying institution that can help achieve the goal. It is necessary to adopt a market-oriented approach for finance to facilitate common prosperity.

Against this backdrop, the China Finance 40 Forum (CF40) conducted a seminar to review the progress of the 2022 Jingshan Report themed “The Role and Path of Finance in Support of Common Prosperity” on October 15, 2022. The Report consists of one comprehensive report and six sub-reports, the results of which were presented by the project leaders and reviewed by the experts.

The comprehensive report addresses the role of finance in promoting common prosperity and the policy framework needed to enable this role, presented by Xiao Gang (CF40 Nonresident Senior Fellow and former Chairman of China Securities Regulatory Commission) and reviewed by Huang Qifan (CF40 Advisor and Distinguished Professor at Fudan University). The first sub-report focuses on how finance can support the pursuit of common prosperity by promoting high-quality development, presented by Zhang Xiaohui (CF40 Non-Resident Senior Fellow and former Assistant Governor of the People’s Bank of China) and reviewed by Zhang Xiaopu (CF40 Member and Director-General of Bureau I at the Office of the Central Financial and Economic Affairs Commission). The second sub-report looks at the role of finance in supporting coordinated regional development, presented by Zhang Bin (CF40 Non-Resident Senior Fellow and Deputy Director of Institute of World Economics and Politics at Chinese Academy of Social Sciences) and reviewed by Wang Yiming (former Deputy Director at Development Research Center of the Chinese State Council). The third sub-report is centered on the framework and path of rural finance in support of common prosperity, presented by Wang Shengbang (Director-General of Rural Banking at China Banking Regulatory Commission) and reviewed by Xu Zhong (CF40 Member and Deputy Secretary-General of National Association of Financial Market Institutional Investors). The fourth sub-report is devoted to how to build a sound capital market and expand the middle-income group, presented by Wang Yi (CF40 Member and Deputy General Manager of China Everbright Group) and reviewed by An Qingsong (President of the Securities Association of China). The fifth sub-report examines the role and practice of wealth management and trust fund in support of common prosperity, presented by Jin Li (Chair Professor and Acting Vice President of Southern University of Science and Technology) and reviewed by Li Wenhong (CF40 Member and Director of Beijing Municipal Bureau of Local Financial Regulation and Supervision). The six sub-report examines Zhejiang’s practice in enabling finance to support common prosperity, presented by Yin Xingshan (former President of the Hangzhou central sub-branch of the People's Bank of China) and reviewed by Wang Xin (CF40 Member and Director-General of Research Bureau at People’s Bank of China).

The Report puts forward a policy framework for finance to support common prosperity driven by one goal, four principles and five suggestions. The main goal is to "build a financial system that is more adapted to the modernized economic system". The four principles are market-orientation, steady progress, sustainability and risk prevention. The five suggestions include enhancing the quality and efficiency of financial development, improving financial inclusiveness, unleashing the wealth effect of financial markets, giving full play to financial markets in resource allocation, and implementing a financial security strategy.

The event was moderated by CF40 secretary-general Wang Haiming.