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Real economy provides new momentum for China

| 2017-01-19 | Hits:
(Chinese Social Sciences Today)

Revitalizing the real economy is the main way to inject fresh momentum into China’s economic development, said Liu Zhibiao, a professor of economics from the Business School at Nanjing University, at a recent symposium on the economic development of East China’s Jiangsu Province. The key to revitalizing the real economy is changing the way companies get financing while further deleveraging and lowering costs as well as cutting overcapacity. The type of financing should be changed from loans to direct financing, such as securities and the stock market, Liu said. The rising costs of operating a company were caused in part by rising transaction costs stemming from irrational management. Low labor productivity was another contributing factor, Liu said.