Pan Gongsheng, governor of China's central bank, provided a comprehensive overview of the evolving characteristics of the country's financial structure and changes in financing data in his keynote speech at the 2026 Lujiazui Forum on June 17.
Examining the issue from the perspectives of China's transition to a new stage of economic development, industrial upgrading and financial supply-side reform, Pan offered an in-depth analysis of the underlying logic and key drivers behind the adjustment of the country's financing structure.
Framed within the broader goals of high-quality development and building China into a financial powerhouse, he also outlined the medium- and long-term direction of China's financial market modernization, the coordinated development of equity, bond and bank financing, and institutional opening-up of the capital market, providing an authoritative policy framework for assessing key issues such as the expansion of direct financing, optimization of the financial structure and cross-border capital management.
Pan said China's financial system has long been dominated by bank lending, while financial markets remained relatively underdeveloped. In recent years, however, the share of indirect financing centered on bank loans has continued to decline, while the proportion of direct financing, including bond and equity financing, has steadily increased, signaling profound changes in the country's financial structure.
