Pan Gongsheng: Financial services to the economy are more reflected in structural optimization and improved adaptability, rather than in the continuous expansion of macro financial aggregates.

On September 16, Qiushi published a signed article by Pan Gongsheng, Governor of the People's Bank of China, titled "Deeply Understanding the Structural Transformation of China's Financial System and Enhancing the Adaptability of Financial Services to the Real Economy." The article pointed out that in the past, China's financial aggregate grew relatively quickly, mainly related to the monetization process of the economy and the large-scale money demand brought about by rapid growth. Since reform and opening up, China has shifted from the previous dominance of in-kind distribution to monetary distribution. More and more goods and housing have their value denominated in money and are traded through money as a medium, and financing demand has also increased rapidly, leading to relatively fast growth in financial aggregates. At present, China's economy has shifted from a stage of high-speed growth to a stage of high-quality development. The monetization process has basically ended, and finance's service to the economy is more reflected in structural optimization and improved adaptability, rather than in the continued expansion of macro financial aggregates. From the mathematical relationship of aggregates, the growth rate is the ratio of the increment to the total stock. The numerator is the current increment, and the denominator is the total stock. At present, China's stock of social financing scale exceeds 460 trillion yuan, broad money balance exceeds 350 trillion yuan, and loan balance exceeds 280 trillion yuan. The scale of macro financial aggregates is already very large. As the stock expands, it is natural for the growth rate of financial aggregates to decline somewhat, which is consistent with the transformation of China's stage of economic development.