China needs to change way it finances economy, think tank says
China needs to change way it finances economy, think tank says. China's economic development over the past 40 years has taken place through a financial system that has high government intervention and is "absolutely dominated by banks", the China Finance 40 Forum said in an annual report. China's reliance on technological innovation for future economic growth has made changing the structure of the financial system an urgent matter, said Huang Yiping, the report's leading author and a professor of economics at the National School of Development of Peking University. Banks should be encouraged to link small and medium enterprises (SMEs) with the country's capital markets, said Yang Kaisheng, a consultant for the think tank and former president of China's largest lender Industrial and Commercial Bank of China.