Let's start with the topic "When the world pays attention to China":

First of all, how does the economic recovery of blood transfusion bring about the overall recovery of the market?

Today, the world economy, especially China's economy, has begun to pick up, which has indeed brought hope and confidence to domestic and foreign markets. Even many overseas scholars believe that the world economy is bidding farewell to the "deflation" caused by liquidity panic, such as high market financing cost, low investment confidence and serious shortage of consumption power. When the global financial tsunami triggered by the United States changed from the first-stage debt crisis of financial institutions in March 2007 to the second-stage liquidity crisis in August 2008, governments all over the world tried to avoid the huge impact of the financial crisis on their real economy and the hard landing risk caused by it through active policy intervention and capital injection. China government's rescue action has aroused great concern and positive comments from people from all walks of life at home and abroad.

However, we can't be satisfied with the temporary recovery of economic indicators brought by government blood transfusion, nor can we be discouraged by individual indicators that the liquidity crisis has led to the continued failure of the real economy. Therefore, the government should not only transfuse blood for the real economy, but also create more favorable institutional conditions for the early recovery of hematopoietic function in the market. In other words, only by allowing more dynamic entrepreneurs to enhance their competitiveness, find broad development space in the future, and improve the living standards of a large number of laborers through their own profit growth, can we form the power needed to promote the sustainable development of China economy and even the world economy, and truly usher in the spring of China economy and world economic recovery!

Second, can the world economy stand the test of future inflation?

Because it is a liquidity crisis, that is, relying on the market's own energy can not restore the economy. Only the direct intervention of government funds can avoid the risk of a hard landing. However, with the increasingly fierce monetary injection policies of governments, domestic and foreign markets are generally worried about inflation. Some commodities that avoid inflation are also very popular, such as the rising price of gold. However, I think the key to China's risk lies in the deflationary pressure brought by overcapacity under the unbalanced economic structure. If the government's rescue behavior weakens and the market confidence is insufficient, then the investment will slow down, the problem of enterprise inventory increase will become more serious, and personal employment and income will become a thorny issue for the country. Of course, we should be alert to the excessive concentration of funds in unproductive places, resulting in the bubble expansion of some commodity prices and asset prices. At present, the China government is also strengthening supervision to avoid large-scale inflation when the economic recovery is not completed. As far as the current economic situation in China is concerned, I personally think that even if there is an inflation problem, it is more likely that an inflation environment will form in the external market. I am worried about repeating the imported inflation caused by the soaring commodity prices in the first half of last year. If the economy can't maintain the current good recovery, then stagflation risk is the most troublesome stumbling block for China's economy. In this sense, it is imperative for governments around the world to reach an understanding, strengthen information enjoyment and get rid of the economic downturn as soon as possible, instead of thinking too much about curbing inflation. Because once the policy direction is wrong, the consequences will be unimaginable!

Third, what can the construction of Shanghai International Financial Center bring to the world? What kind of support do we need from all countries in the world for China?

This issue will become a hot issue for the participants in this meeting, because people expect that the construction of Shanghai International Financial Center will bring more business opportunities to the world economy, and promote the internationalization of RMB as soon as possible through this carrier to get rid of the unstable pattern of the international monetary system dominated by the US dollar. Here, I would like to make three suggestions on this issue:

First of all, we should learn from foreign experiences and lessons of success and failure, follow reasonable "transformation" steps, and grasp the correct pace and opportunity of promotion. Today, in the pilot process of Shanghai International Financial Center, RMB cross-border trade settlement business was launched, allowing some qualified foreign-funded institutions and enterprises to issue RMB bonds and RMB stocks in advance, taking the lead in starting the financing function of foreign-funded departments in China. This is an open strategy in line with China's national conditions. However, if we don't pay attention to "open order" in the center construction, or are too cautious to move forward, then the construction of the two centers will only become an image project or a very beautiful concept, and the waste of precious resources caused in this process is unacceptable to all the public.

Second, we should pay attention to the "functional similarity" with other central cities in the world, rather than staying at the "similarity" level of the physical environment. Through the transformation of Shanghai's industrial structure, we can successfully release the multi-functional advantages of "double centers" serving the economic development of Shanghai, the Yangtze River Delta and even the whole country. Especially in international financial centers, we must pay attention to the six basic functions that global financial resources need to be effectively allocated, and we must not be dragged down by the subsequent product innovation and market development! Specifically, we should give full play to price discovery (indeed, a good investment environment requires us to liberalize the management of interest rates, exchange rates and other factor prices as soon as conditions are ripe), risk sharing (whether this function can be effectively played will also be limited by the financial innovation ability of China's market and the financial culture that calmly responds to risks), and liquidity guarantee (of course, according to the successful experience of foreign countries, a large net inflow of international capital can accelerate the pace of building China into an international financial center. For China, it is necessary to make a major breakthrough in convertibility under capital account as soon as possible), information production (accurate and sufficient information disclosure is more important than preferential tax policies for investors), corporate governance (requiring a standardized regulatory system and a corporate culture that advocates fair competition) and value creation (whether the fruits of the strong development of China's real economy can be shared fairly and effectively by all participants in Shanghai International Financial Center), which requires us to establish a set of six basic functions that meet international standards as soon as possible, that is, perfect laws. Otherwise, we will once again pay a heavy price for our blind "opening up" and "innovation", just like the East Asian crisis of 1997.

Third, Shanghai's "double center" construction should first serve the "Yangtze River Delta" and the national economic development. Through more effective institutional coordination among local governments, we can further revitalize the resource advantages of the Yangtze River Delta, for example, support the growth of small and medium-sized enterprises and innovative enterprises, and develop financial innovation platforms and businesses such as GEM, microfinance companies, private banks and consumer finance loan companies, so as to mobilize China's huge savings, provide a strong investment and financing environment for China's industrial structure upgrading and stimulate consumption, and promote a new growth model of China's economy based on independent innovation and domestic demand market. And when conditions are ripe, we will further make good use of this platform to promote deeper economic and financial cooperation in Asia (at least today, multi-directional cooperation with China, Hongkong and Taiwan Province Province of China can effectively promote the internationalization of RMB and the construction of dual centers). For example, the establishment and introduction of Asian mutual funds, Asian dollar offshore market and other businesses will improve the ability of export-oriented Asian countries to effectively manage foreign exchange assets.

In a word, this Lujiazui Forum will reflect people's more expectations for China's economy, and will also bring more demands from domestic and overseas markets for the China government. As long as we can handle the relationship between "efficiency" and "stability", be brave in innovation and reform, grasp the open order and opportunities, and strengthen win-win cooperation with all countries in the world, the further development of China's economy on the world stage will become the common aspiration of people at home and abroad!