Unbalanced macro structure has resulted in lack of flexibility and a high concentration of risks in the banking system

China urgently needs to launch a new round of financial reforms in response to the mounting systematic risks in the country's financial system.

Since the microprudential reform approach of the last round of reforms, with its emphasis on certain fields and financial institutions, is unfit for the new features and trends of the current financial system, the accumulation and evolution of systematic risks in recent years is crying out for a new round of financial reforms with a macroprudential perspective to soften the impact of the economy-wide fluctuations and economic restructuring.