China's transformation must focus on industrial upgrades, says expert

Visitors are attracted to the Huawei stand at the China Nanjing International Software Product and Information Service Trade Fair in Nanjing, East China's Jiangsu province on November 23, 2022. The PHOTO VCG Innovation in the financial sector is a cornerstone of China's modernization as there is a growing need for wealth management and fundraising for the technology sector, said Wu Xiaoqiu, former vice-president of the Renmin University of China and dean of the China Capital Market Research Institute.

Wu made remarks on Wednesday at the Boao Forum for Asia Annual Conference 2023, a China-based equivalent of the World Economic Forum held every year in Davos, Switzerland.

Demand for wealth management in China has gone up as a result of modern financial development. Wu said that the demand goes beyond simply depositing money.

Without industrial upgrades and technological progress, it would be hard for traditional industries to bring China into the era of modernization by focusing on resource-based enterprises. Wu Xiaoqiu, the former vice-president of Renmin University of China, is a former vice-president.

It is important for the country to drive industrial upgrades and iterations in its pursuit of modernization, which requires accelerated efforts to build a more diversified financial landscape to meet high-tech companies' needs. The country aims to build a great modern socialist country by the middle of the century, making it imperative to ensure sustainable economic growth through technological innovations and advance law-based governance in all aspects.

Without industrial upgrades and technological progress, it would be difficult for traditional industries to bring China into the era of modernization by hinging on resource-based enterprises, he said.

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The financial market in China was brightened by reforms last month to make it more market-oriented and rule-based.

The country rolled out its across-the board registration-based IPO system with relevant rules coming into effect on February 17, according to the China Securities Regulatory Commission.

Considering the reform as a major milestone in the history of China's capital market, Wu said that it is likely to improve the market's inclusiveness, allowing tech startups easier access to the market.