Li Lihui: Deepen financial supply-side reforms and use blockchain to solve trust issues

On December 14th, at the 21st Peking University Guanghua New Year Forum, Li Lihui, former president of the Bank of China, delivered a speech saying that financial allocation is unbalanced, and it is necessary to seek a feasible path to deepen financial supply-side structural reform and empower the real economy. Li Lihui emphasized that to deepen the structural reform of the financial supply side, it must be long-term, pragmatic and feasible. He made a few suggestions for this: First, build a digital trust mechanism. Use big data technology to discover credit, and apply blockchain technology to solve trust issues. Second, improve market-based pricing mechanisms. Commercial banks' reasonable credit pricing should cover risk costs and capital costs. Third, improve the fiscal tax system. Adjust the tax structure of small and micro enterprises, reduce intermediate taxes, and subdivide income tax; appropriately expand the tax concessions for small and micro financial businesses, and exempt or substantially reduce VAT and income taxes on loans issued by financial institutions to small and micro enterprises. Fourth, improve the capital market. Encourage long-term investment and attract and regulate long-term funds such as insurance and pension funds to enter the market.