Financial supervision must evolve to promote China's finance growth, not just stability.
Financial supervision is important for managing risks, but it has limitations. Too strict supervision can actually worsen risks. The main goal now is to help China's finance grow, not just prevent risks. Supervision is needed for stability, but it can't replace monetary policy. If monetary policy isn't clear, supervision won't work well. To improve supervision and keep the financial market stable, the government needs to reform the financial system towards more market-based approaches.