On the other hand, it’s not enough by the exchange rate alone to keep the equilibrium of BOP due to the price rigidity existed in some aspects of China’s economy. Continuous internal economic policy adjustments are needed to strengthen the coordination between various macro policies, expand consumption, and ensure a balanced development between economic restructuring and the BOP.
Secondly, Actively promote the construction of financial market. Currently, the financing structure, featuring high proportion of indirect financing and low proportion of direct financing, remains to be  BIS Review 87/2005  3  rationalized. Financial risks are too much concentrated in the banking sector, which weakens the role of market in resource allocation and results in the high financial leverage ratio of enterprises.