Chinese President Xi Jinping has warned of “inappropriate” accumulation of wealth and the danger to a healthy economy in his previously unpublished remarks in a Communist Party magazine, according to Bloomberg.
China needs to expand its real economy and avoid a massive unemployment situation, Xi said in a speech December 8 at the annual Central Economic Work Conference, published by Qiushi magazine on Sunday. He also warned about the erratic expansion of capital, as well as the risks of the financial market and the real estate market.
Xi stressed that while China should not allow “predators of capital” to act recklessly, it must ensure that smooth capital growth and not just get rid of it. It is not clear why the magazine published the remarks more than five months after the speech.
The leader also said that the financial risks are the result of a lack of oversight in the governance of financial institutions, the sluggish management of local debts, the blind expansion of large companies and their over-reliance on financial leverage, financial fraud and fraud. slowing economic growth.
China should consider policies to support mergers and acquisitions of non-performing assets by financial institutions, and local governments should revitalize existing assets and mitigate risks, Xi said. He also stressed the dangers associated with real estate builders.
There should also be a national strategic stockpile system so that it can ensure stability at critical times, Xi said.
Source: Capital
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