In addition to regulating the legal relationship, the legal framework for the financial sector has many other functions, including punishment, encouragement, inhibition and guidance. In economic terms, it could be translated into predictable interest or loss. A large number of rules and regulations for the financial sector have been formulated since 1979, when China adopted the reform and opening-up policy.
It starts with demography: the working population is decreasing, so productivity has to be increased even more to compensate for it. Potential growth is very low and in present conditions, we fear that this will be a protracted period of low growth. This prospect of protracted low growth is shared by all advanced economies.