The vice-president of Tsinghua University's Economics and Management School told a gathering in Beijing that China needs more investment options for both individuals and companies.
The reason people are depositing most of their earnings in banks is because they have few ways to invest and they are not quite willing to spend, according to Bai Chongen, who was addressing the 21st Century Annual Finance Summit of Asia, on Nov 26, in Beijing.
"A high rate of deposits and low rate of spending is not a healthy economic situation, but it is difficult to change in the short term," Bai said.
"So we need to open more investment channels for individuals and enterprises in China.
"And the authorities should think of ways to help them invest, both at home and abroad," he continued.
"At present there is no agency that can help individuals invest overseas, so our financial leaders should develop agencies to meet this demand.
"Another way to satisfy people's investment needs is to allow companies overseas to be listed on China's stock markets. In that way, people can invest in overseas companies easily, domestically."
Bai also called for Chinese authorities and financial institutions to provide greater convenience for Chinese companies to invest overseas.
"To keep an economic balance, we cannot expect the domestic economy to change into a consumer-driven one immediately. But, we can expect more and better investment channels for Chinese individuals and enterprises to help China's deposits get a better return," Bai concluded.
Source:China Daily
The reason people are depositing most of their earnings in banks is because they have few ways to invest and they are not quite willing to spend, according to Bai Chongen, who was addressing the 21st Century Annual Finance Summit of Asia, on Nov 26, in Beijing.
"A high rate of deposits and low rate of spending is not a healthy economic situation, but it is difficult to change in the short term," Bai said.
"So we need to open more investment channels for individuals and enterprises in China.
"And the authorities should think of ways to help them invest, both at home and abroad," he continued.
"At present there is no agency that can help individuals invest overseas, so our financial leaders should develop agencies to meet this demand.
"Another way to satisfy people's investment needs is to allow companies overseas to be listed on China's stock markets. In that way, people can invest in overseas companies easily, domestically."
Bai also called for Chinese authorities and financial institutions to provide greater convenience for Chinese companies to invest overseas.
"To keep an economic balance, we cannot expect the domestic economy to change into a consumer-driven one immediately. But, we can expect more and better investment channels for Chinese individuals and enterprises to help China's deposits get a better return," Bai concluded.
Source:China Daily
