CHINA’S new development model will help further the nation’s reform and opening up, with a bigger focus on domestic demand, Vice President Wang Qishan said.

The government is working to remove structural impediments to encourage the market to determine the allocation of resources in the economy, Wang said in a speech at the Second Bund Summit in Shanghai on Saturday. China has entered the stage of high-quality development and the economy enjoys “broad prospects,” he said.

Wang said China will foster a more convenient and world-class business environment governed by a sound legal framework. In the development of the financial sector, the country will “keep away from the wrongful paths of excessive speculation, self-reinforcing cycles of financial bubbles and Ponzi schemes,” he said.

“We must make sure that the financial sector serves the real economy,” he said.

In the new development pattern, instead of locking itself in isolation, China will make better use of domestic and overseas markets for stronger and more sustainable growth. Yi Gang, governor of China’s central bank the People’s Bank of China, echoed with Wang at the summit.

“The new development pattern is not to close the door and to operate in isolation,” Yi said Saturday. “Rather it is to make better use of the markets and resources at home and abroad so as to achieve a more robust and sustainable development.”

To promote the opening up of the financial industry, China will improve its currency yuan’s flexibility and let the market lead yuan’s globalization, reducing restrictions on the cross-border use of yuan, Yi said.

He also mentioned that China had launched more than 50 measures in the past two years to open up the financial sector, including scrapping foreign ownership limits in several fields and a negative list for foreign investors.

Even with these measures, foreign investors still have many application procedures to go through and more should be done to meet the demand of opening up, he said.

Regulations should be in line with the opening up, and “firewalls” should be built to improve regulators’ ability to prevent and resolve major risks, according to Yi.

Speaking at the same conference, former PBOC Governor Zhou Xiaochuan said China’s high savings rate will change amid the adoption of a “dual circulation” strategy.

The dual circulation strategy, a new economic development pattern floated by China’s top leadership in May, aims at taking the domestic market as the mainstay while letting internal and external markets boost each other.(SD-Xinhua)