By Zhu Hongming, Research Institute of Finance, DRC

Research report No.29, 2018 (Total 5304) 2018-2-7

Abstract: To implement the guidelines of the 19th CPC National Congress in the financial field, the principle is to step up the construction of a modern financial system. We must hold on to Xi Jinping thought on socialist economy in the new era with Chinese characteristics, follow Xi Jinping's instructions on financial work, and have an overall understanding of and scientifically grasp the meaning of modern finance theory. It is held that the fundamental criterion for judging modern finance and the effectiveness of modern financial system is to see whether it is conducive to resolving major risks in the critical period, whether it can always adapt to the modern economic system, and whether it can effectively support the modernization of socialism with Chinese characteristics. Judging from this perspective, modern finance is a financial system that is synergistic with the real economy, efficient in service and resilient for growth with the fortitude to reform itself. Therefore, to step up the construction of a modern financial system in the new era requires the establishment of a unified and open market with orderly competitiveness, in order to maintain financial security, promote the rebalancing between the financial sector and the real economy, and enhancing the self-reform capability of the financial system.

Key words: modern finance, modern economic system, real economy, financial security