Covid-19 pandemic as an accelerator of economic transition and financial innovation in China

ABSTRACT

The Covid-19 pandemic has had a significant impact on the financial sector and real economy around the world. China’s economy has recovered rapidly from Covid-19. The main reasons are that China has an ample policy toolbox and paid more attention to the recovery supply-side. The Covid-19 pandemic has been an accelerator of China’s digital economy and has established a ‘dual circulation’ development pattern. Digital technology-supported inclusive finance and supply chain finance were the key to a rapid recovery. Financial innovation has ensured that the companies quickly resumed production. China still insists on the reform and opening up of its financial sector. In a word, the Covid-19 pandemic has been an accelerator of economic transition and financial innovation in China.

KEYWORDS:

• Covid-19
• economic transition
• financial innovation

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Shusong Ba

Professor Ba Shusong is Managing Director and Chief China Economist of Hong Kong Exchanges and Clearing Limited (HKEX), Chief Economist of the China Banking Association (CBA) and Executive Director of the HSBC Financial Research Institute at Peking University. He is also a member of the Mainland Opportunities Committee of the Financial Services Development Council (FSDC) of Hong Kong, Vice President of the China Society of Macroeconomics, a member of Ministry of Commerce's Economic and Trade Policy Advisory Committee, a member of China Banking and Insurance Regulatory Commission’s Expert Guidance Committee for the banking industry’s implementation of the new Basel capital accord.

Haifeng Bai

Dr. Bai Haifeng comes from School of Business Adminstration, Northeastern University and is studying for a doctorate in finance. He is the CEO of China Merchants Asset Management (Hong Kong) Co., LTD. He also earned an MBA degree from Columbia Businesses School at Columbia University and an Bachelor degree in Psychology from Peking University.