A paradox in China's financial industry

BEIJING, July 6 (People's Daily Online) -- The top Chinese securities regulator put forth the paradox in China's financial industry recently.

Guo Shuqing, Chairman of the China Securities Regulatory Commission (CSRC), wrote an article, titled "Adjusting financial structure to pave way for economy" on People's Daily, China's flagship newspaper on July 2.

"There is a unique paradox existing in China's financial industry," Mr. Guo wrote in the article.

"It is that 'there are many enterprises but the financing is difficult; there is much capital but the investment is difficult'."

China's rate of saving is as high as 52 percent, ranking the first in the world, according to statistics.

Even if China's rate of saving is 45 percent, the nation's total annual saving still exceeds 21.5 trillion yuan, which is equal to 3.4 trillion U.S. dollars according to the current exchange rate.

The number shows that China has adequate capital.

"Abundant capital is only a relative term," wrote the CSRC Chairman. "Nearly 200 billion U.S. dollars of national savings are invested in international economy every year, exceeding the total fixed investment in domestic agriculture."

"In fact, China's financial market has relatively serious structural defects."