Economic structure needs adjustment
By Sun Lijian (China Daily)Updated: 2006-12-21 11:27
Based on trade of intangible assets, financial investment depends more intensively on the legal system and the supervisory mechanism than other businesses. Without a solid legal system and supervisory mechanism professional enough to prevent cheating and other abuses of the financial market, the market will probably see a disastrous crisis once the authorities remove the current limitations on it.
Financial investment education should be promoted among the public. Common investors without enough knowledge tend to overreact to ups and downs in the financial market for self-protection.
Being a trading giant and a beginner in finance at the same time, China has to overcome a lot to ensure the sustained growth of the economy.
A realistic solution to ease the problems caused by the dual identity is to slow down the growth of the country's trade and accelerate the development of the financial sector so that the two can advance at the same pace.
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