By Chen Ning, Research Institute of Finance, DRC

Research Report, No.213, 2020 (Total 5957) 2020-9-1

Abstract: Financial infrastructure is the foundation for the entire financial system to function. High-quality financial infrastructure can ensure sound and efficient operation of the financial market and institutions, improve financial services and boost the reform and development of the financial sector. Thanks to the hard work for the past decades, China has made remarkable progress in financial infrastructure building, with its international ranking in several fields improved steadily. However, China’s financial infrastructure is plagued by a segmented market, small unit transaction amounts, limited support for mobile phone paying from the central government, dispersed transaction data, too many exchange houses, and small coverage of credit information agencies. This study first explains the necessity for promoting high-quality development of financial infrastructure, then analyzes the weaknesses in China’s financial infrastructure building compared with some advanced countries, and finally puts forward the policy options on high-quality development of China’s financial infrastructure such as improving the legal and supervision systems, leveraging functions of the financial infrastructure, enhancing interconnectivity and integration, and tap into the strengths of China’s financial technology.

Keywords: financial infrastructure, high-quality development, international comparison