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How financial-system reform could benefit China

• The ongoing development of China's financial system will play a critical role in the country’s effort to narrow social disparities and pursue balanced growth.
• Reforming the financial system could not only raise GDP by as much as 17 percent, or $320 billion a year, but also help spread China’s new wealth more evenly.
• If the reforms directed additional funds to private companies—China's growth engine—the economy would generate significantly higher returns for the same level of investment and GDP would rise.
• Such a shift will stimulate mass job creation in the strongest areas of China's economy and increase tax revenues to finance social programs.