Xi Jinping: Take the Right Path for Financial Development with Chinese Characteristics and Build a Strong Financial Nation.

January 31, 2026; Source: Qiushi, Issue 3, 2026

Chart a course for China’s distinctive path of financial development and build a strong financial nation※

Xi Jinping

One

Since the 18th National Congress of the Party, we have actively explored the laws governing financial development in the new era, continuously deepened our understanding of the essence of socialism with Chinese characteristics in the financial sphere, and steadily promoted innovation in financial practice, theory, and institutions. As a result, we have accumulated valuable experience and gradually forged a path of financial development with Chinese characteristics.

From October 30 to 31, 2023, the Central Financial Work Conference was held in Beijing. Xi Jinping, General Secretary of the CPC Central Committee, President of the People’s Republic of China, and Chairman of the Central Military Commission, attended the conference and delivered an important speech. Photo by Xinhua News Agency reporter Ju Peng.

First, we must uphold the Party Central Committee’s centralized and unified leadership over financial work. The Party’s leadership is the most essential feature of China’s path toward distinctive financial development, and it represents our country’s greatest political and institutional advantage in financial development. All of China’s major achievements in financial development have been attained under the Party’s leadership. On the other hand, many problems that have emerged in the financial system stem from the fact that numerous financial institutions have failed to effectively implement the decisions and deployments of the Party Central Committee, resulting in a weakening and hollowing out of the Party’s leadership within the financial sector, as well as a weak political building within the Party and lax efforts to strengthen Party conduct and integrity. Therefore, we must firmly uphold the Party Central Committee’s centralized and unified leadership over financial work, fully leveraging the Party’s core role in overall planning and coordinating all parties, thereby ensuring that financial work always stays on the right track.

Second, we must adhere to a value orientation centered on the people. The financial endeavors led by our Party ultimately aim to benefit the people—this is fundamentally different from the nature of finance in some other countries, which serves capital and a small wealthy elite. In this new era and on this new journey, financial work must firmly stand on the people’s side, enhance the diversity, inclusiveness, and accessibility of services, and better protect the rights and interests of financial consumers.

Third, we must firmly uphold the principle of regarding financial services to the real economy as our fundamental mission. The real economy is the foundation of finance, while finance is the lifeblood of the real economy; serving the real economy is finance’s inherent duty. If finance becomes obsessed with self-circulation and self-expansion, it will turn into water without a source and a tree without roots, inevitably leading to a crisis sooner or later. China’s financial sector must stay true to its primary role of serving the real economy and promoting high-quality development—under no circumstances should it decouple from the real economy and gravitate toward speculation and virtuality.

Fourth, we must consistently regard risk prevention and control as the enduring theme of financial work. While finance serves both to manage and diversify risks, it also inherently carries risk itself. Today, China’s financial sector has grown in scale and complexity to an extent unprecedented in the past, and the systemic interconnectedness of risks has significantly intensified. We must therefore strengthen our sense of vigilance, proactively address risks, and enhance the resilience of our financial system.

Fifth, we must persist in promoting financial innovation and development along the track of marketization and rule of law. Financial stability depends on sound institutions; vitality stems from the market; and order is maintained through the rule of law. Financial transactions involve complex and diverse relationships of rights and obligations, characterized by information asymmetry and demanding high levels of creditworthiness. Therefore, it is essential to establish a robust regulatory framework. We must build a comprehensive system of financial laws and market rules, ensuring that all prohibitions are strictly enforced and that any violations are rigorously investigated and punished, thereby safeguarding the healthy operation of the financial market.

Sixth, we must persist in deepening structural reforms on the supply side of the financial sector. A key feature and advantage of China’s financial system is that state-owned financial institutions dominate. However, there are still issues such as a relatively high proportion of indirect financing and debt financing, insufficient inclusiveness of financial services, as well as financial overextension, unregulated financial activities, and a large number of illegal financial operations. To address these problems, we need to deepen structural reforms on the supply side of the financial sector, clarify the relationship between indirect and direct financing, equity financing and debt financing, optimize the structure of the financial system, improve financial infrastructure, and enhance the quality and efficiency of financial services.

Seventh, we must uphold the coordinated approach to financial opening-up and financial security. Financial opening-up must ensure national financial and economic security. We need to both guard against risks arising from the opening-up process itself and prevent risks deliberately created by adversarial players. We must strike the right balance in terms of the pace and intensity of opening-up, and effectively enhance our financial regulatory capacity, thereby ensuring a higher level of financial openness under enhanced risk prevention and control.

Eighth, we must adhere to the general principle of pursuing progress while maintaining stability. In financial work, we should uphold the approach of seeking progress within stability, using progress to bolster stability, and establishing new frameworks before dismantling old ones. Stability must be our top priority—macroeconomic regulation, financial development, financial reform, financial supervision, and risk management all need to be stable. The tightening and easing of financial policies must not be too abrupt, so as to prevent sharp fluctuations. At the same time, we must remain proactive and energetic, swiftly putting in place the necessary reforms and institutions while maintaining a steady footing and consolidating the fundamental situation, continuously addressing challenges and making steady progress. We must uphold the prudence of monetary policy, flexibly employ a variety of policy tools, and promote the steady and healthy development of the macroeconomy.

The above-mentioned points clearly outline how we should view and approach financial work in the new era and on the new journey. They constitute an integrated whole that embodies the fundamental stance, perspectives, and methodologies of China’s distinctive path of financial development. While this path adheres to the objective laws governing modern financial development, it also possesses distinct characteristics tailored to China’s national conditions and differs fundamentally from Western financial models. We must remain firmly confident, continue exploring and refining our approach in practice, and ensure that this path grows ever broader and more promising.

Two

At the Central Financial Work Conference, I proposed the goal of accelerating the building of a financially strong nation. What exactly is a financially strong nation? It should be underpinned by a robust economic foundation, possessing world-leading economic, technological, and comprehensive national strength, while also being equipped with a set of critical, core financial elements. First, it must have a powerful currency that is widely used in international trade, investment, and foreign exchange markets and enjoys the status of a global reserve currency. Second, it must have a strong central bank capable of effectively implementing monetary policy adjustments and macroprudential regulation, as well as promptly and efficiently preventing and resolving systemic risks. Third, it must have robust financial institutions that are highly efficient, resilient to risks, fully diversified, and endowed with global operational capabilities and international competitiveness. Fourth, it must boast a powerful international financial center that can attract global investors and influence global pricing mechanisms. Fifth, it must have strong financial regulation and a sound financial legal framework, enabling it to wield significant influence and voice in the formulation of international financial rules. Sixth, it must have a talented and highly skilled financial workforce. Although China is already a major financial power—ranking first globally in terms of bank size and foreign exchange reserves, second worldwide in bond and stock market sizes, and among the top in insurance market size—overall, it remains large but not yet strong. Building a financially strong nation will require sustained, long-term efforts and unwavering dedication.

On January 16, 2024, a special seminar for leading officials at the provincial and ministerial levels on promoting high-quality financial development was launched at the Central Party School (National Academy of Governance). Xi Jinping, General Secretary of the CPC Central Committee, President of the People's Republic of China, and Chairman of the Central Military Commission, delivered an important speech at the opening ceremony. Zhao Leji, Wang Huning, Cai Qi, Ding Xuexiang, Li Xi, and Han Zheng attended the opening ceremony. Photo by Xinhua News Agency reporter Shen Hong.

To build a strong financial nation, we must accelerate the development of a modern financial system with Chinese characteristics.

First is a scientifically sound and robust financial regulatory system. We must build a modern central banking system, improve the framework of China’s distinctive modern monetary policy, refine the mechanisms for base money issuance and money supply regulation, and effectively leverage both the aggregate and structural functions of monetary and credit policy tools to ensure the stability of the RMB exchange rate and overall economic and financial stability.

Second, a financial market system with a rational structure. We must accelerate the development of a capital market that is secure, standardized, transparent, open, dynamic, and resilient. We should foster a multi-tiered equity market, enhance the quality of listed companies, and deepen the institutionalization of delisting mechanisms. We need to fully leverage the role of venture capital and private equity investment in supporting technological innovation, and strengthen the functions of the bond market, money market, and foreign exchange market.

Third, we need a financial institution system characterized by division of labor and collaboration. China boasts a comprehensive array of financial institutions; the key is to pursue differentiated development and complementary strengths, each playing its own role and leveraging its unique advantages in serving the real economy. All types of financial institutions must stay true to their original missions and return to their core functions, effectively enhancing their competitiveness and service capabilities to meet the diverse and multi-layered financial service needs of the real economy and the general public.

Fourth, a comprehensive and effective financial regulatory system. We will comprehensively strengthen financial regulation by reinforcing institutional supervision, conduct-based supervision, functional supervision, penetrative supervision, and ongoing supervision, achieving full coverage of regulatory oversight. This will effectively enhance the proactiveness, precision, coordination, and effectiveness of regulation, thereby building a robust financial safety net.

Fifth, we will build a diversified system of specialized financial products and services. We will strengthen high-quality financial services for major strategies, key sectors, and weak links, and make concerted efforts in five major areas: technology finance, green finance, inclusive finance, pension finance, and digital finance. We will accelerate the digital and intelligent transformation of the financial sector.

Sixth, an independently controllable, secure, and efficient financial infrastructure system. Strengthen overall planning, refine market access, regulatory standards, and operational requirements, and enhance the self-reliance and security and reliability of both software and hardware in critical financial infrastructure.

Three

To promote high-quality financial development and build a strong financial nation, we must adhere to the integration of rule of law and moral governance, vigorously carry forward China’s outstanding traditional culture, and actively foster a financial culture with Chinese characteristics.

First, we must be honest and trustworthy, never crossing the moral and legal底线. China’s fine traditional culture places great emphasis on keeping one’s word and honoring commitments. As a financial industry that is fundamentally built on trust, we must even more so uphold the spirit of contract, strictly abide by market rules and professional ethics. We should carry forward the time-honored traditions of “rigorous accounting, meticulous record-keeping, and strict adherence to regulations,” and always ensure that our financial records are genuine and accurate. We must firmly uphold the principle of repaying debts when due, cherish our reputations, and avoid becoming chronic defaulters. We must strengthen self-regulation within the industry and impose lifelong bans on those who seriously breach trust.

Second, we must pursue profit with integrity and not be solely driven by self-interest. China’s fine traditional culture emphasizes that “those who put righteousness before profit will be honored, while those who put profit before righteousness will be disgraced.” To disregard morality in pursuit of gain has always been deeply despised by gentlemen. Finance possesses both functional and profit-oriented attributes; however, profit must subordinate itself to the effective fulfillment of its functions. The financial sector must earnestly shoulder its social responsibilities and strive for symbiotic prosperity among finance, the economy, society, and the environment.

Third, we must adopt a steady and prudent approach, avoiding haste and short-term gains. The fine traditional Chinese culture emphasizes that “haste makes waste, and pursuing small profits will prevent us from achieving great things.” Internationally, the key secret behind some financial institutions’ ability to become century-old enterprises with enduring success lies precisely in their steady and prudent management. The financial industry must cultivate a correct outlook on business operations, performance, and risk—operating steadily and prudently, focusing not only on the present but also on the long term. We should resist the temptation of short-term windfall profits, avoid impulsive and rash actions, and refrain from taking excessive risks beyond our capacity.

Fourth, we must uphold integrity and foster innovation without drifting from the real economy toward the virtual. The key is to properly address the questions of who finance serves and why we innovate—focusing squarely on better serving the real economy and making life more convenient for the people, while firmly resisting pseudo-innovation and chaotic innovation.

Fifth, we must operate in strict accordance with the law and regulations, and refrain from acting arbitrarily or unlawfully. Financial operations place particular emphasis on compliance with the law and regulations. Financial institutions and their practitioners must strictly abide by laws and regulations, comply with financial regulatory requirements, and consciously conduct business within the scope permitted by regulators. They must not seek profits by exploiting loopholes in laws and regulations or evading supervision; even more so, they must never cross red lines or push beyond the boundaries of what’s allowed, nor operate outside the legal framework.

※This is an excerpt from the speech delivered by General Secretary Xi Jinping on January 16, 2024, at the special seminar for leading officials at the provincial and ministerial levels on promoting high-quality financial development.

Editor-in-charge: Ren Xiaoxu