Economist shares thoughts on economic innovation

Financial institutions should come up with more business innovation that addresses demand from the real economy and the release of economic information should be further enriched so that the financial sector can better serve the real economy development and rational market expectations can be formed, said Yang Chengzhang, chief economist with Shenwan Hongyuan Securities.

Yang, also a member of the 14th National Committee of the Chinese People's Political Consultative Conference, was quoted by Shanghai Securities News during the ongoing two sessions.

The relationship between the financial industry, real economy, market, institutions and supervision should be better dealt with. Efforts should be made to ensure the high efficiency operation of the market and the professional operation of financial institutions. In this sense, financial institutions should divert their focus from financing to risk management and explore more opportunities while addressing China's major strategies, he said.

The development of the credit bond, equity, trust and insurance should be accelerated to help complete the diversified financial market system. The proportion of direct financing should be further increased to provide a better market ecology ushering in more medium and long-term capital, said Yang.

Meanwhile, the stable operation of the capital market in the long run is inseparable from a rich information supply. It is necessary to form reasonable expectations for long-term economic development through comprehensive and effective economic information disclosure, he added.

In the first place, more parties, like universities, industry associations and media, should be included in the economic information release, suggested Yang. The All-China Federation of Industry and Commerce should be encouraged to regularly release high-quality data on the operation of the private economy. Research institutions, industry associations and media should strengthen cooperation and release multi-dimensional data that reflects the new characteristics of economic transformation, he said.

There should be more release of regional economic data to comprehensively reflect the phased characteristics of economic development in different areas. The release of consumption data should be completed to reflect new consumption trends. Consumption on culture and sports, tourism and accommodation, and business services can be added, said Yang.

Yang also suggested for more statistics to be released on service enterprises and private enterprises. There should also be monthly data on the operating income, total profits, costs and expenses, assets and liabilities of enterprises under different ownership systems, he added.