Any roadmap should have at least the following ingredients: i)  Greater convergence in financial regulation and supervision standards among countries;  ii)  Rethinking the role of the IMF;  iii)  Reinforcement of macro-prudential supervision and regulation tools;  iv)  Reformulation of asset valuation methods;  v)  Avoidance regulatory arbitrage and control of shadow banking system;  vi)  Redefinition of the credit rating agencies function.
These reforms can enhance long-term economic potential. In the short term, China faces significant challenges to sustained economic momentum, given the presence of apparent financial imbalances, which, to a large extent, stem from stimulus policies implemented in the aftermath of the global crisis. In particular, during recent years, credit has been growing rapidly, financing significant investment projects.