How President Xi Jinping Has Charted the Course for Boosting China's Strength in Finance: Nurturing a Financial Culture with Chinese Characteristics
BEIJING, Nov. 4, 2026 /PRNewswire/ -- A news report from en.qstheory.cn:
Boosting strength in finance requires us to enhance not only China's hard power but also its soft power. With an outstanding financial culture, we can shape the values that orient the financial sector, create internal incentives and constraints, and provide the moral foundations for the law and supervision. In this regard, President Xi Jinping has stressed the need to operate in an honest and trustworthy way and never cross the line; to prioritize the greater good in the pursuit of interests, rather than placing self-interest above all else; to adopt a steady and prudent approach and resist the urge to recklessly seek quick gains; to uphold fundamental principles while breaking new ground and ensure finance does not become decoupled from the real economy; and to uphold the law, ensure regulatory compliance, and refrain from misconduct. These requirements not only draw on the essence of traditional Chinese culture, but also articulate the philosophy underpinning modern finance.
Honesty is the lifeblood of finance. Since its advent, finance has been intrinsically tied to trust. China's commercial traditions have long placed a premium on honoring one's commitments. The requirement to operate in an honest and trustworthy way and never cross the line aims to turn the pursuit of honesty into a binding code of conduct that spans all dimensions of financial activity and ensure that financial institutions and practitioners consciously honor their commitments. In this way, the spirit of the contract, market rules, and professional ethics will become conscious norms throughout the financial sector, leaving no room for fraud or breaches of trust.
Properly managing the relationship between principle and profit is the linchpin for balancing the dual nature of finance. While capital is inherently profit-seeking, it must adhere to the baseline requirement of upholding principle. Finance is both functional and profit-driven in nature. The unique wisdom of Chinese culture lies in valuing both principle and profit, while placing greater emphasis on the former. At its core, the requirement to prioritize the greater good in the pursuit of interests aims to ensure that the pursuit of profit gives way to the functional role of finance. Financial activities must remain anchored in the overriding goals of enhancing the efficiency of the real economy and improving public wellbeing. The financial sector must fulfill its social responsibilities and develop symbiotically with the economy, society, and the environment.
Prudence can be thought of as an "immune system" preventing the spread of risk. As finance carries risk in its very DNA and has the effect of amplifying leverage, the reckless pursuit of quick gains must be avoided at all costs in the financial sector. So-called innovation and growth pursued without sufficient prudence will ultimately backfire. A steady and prudent approach must therefore become an innate part of the self-discipline and conscious practice guiding the sector. Institutions must cultivate the correct perspectives on operations, performance, and risk management. They need to strike the right balance between stability and progress, between short-term and long-term development, and between development and security, all aimed at steady and sustainable high-quality development.
*This is an excerpt from an article titled "How President Xi Jinping Has Charted the Course for Boosting China's Strength in Finance" by Qiushi Editorial Department published in Qiushi Journal, English edition, No. 2, 2026. Full text: https://en.qstheory.cn/2026-05/25/c_1184007.htm
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