A view of Xiamen, East China's Fujian Province File photo: VCG

Finance is the core of the modern economy and the lifeblood of national economy.

From the concept of "the path of financial development with Chinese characteristics," which was first proposed during a group study session of the Political Bureau of the Communist Party of China (CPC) Central Committee in February 2019, to the establishment of the goal of building a nation with a strong financial sector at the central financial work conference in October 2023, the financial dimension of President Xi Jinping's economic thought has become increasingly comprehensive and refined.

Every towering tree has its roots; every flowing spring has its source.

From June 1985 to October 2002, Xi worked in East China's Fujian Province for 17 and a half years, where he led a series of forward-looking, pioneering, and strategic innovations and explorations in financial work. These efforts provided a vital source and important guidance for shaping the path of financial development with Chinese characteristics.

Top priorities of the country

With engines roaring, planes adorned with the "Egret" livery of Xiamen Airlines take off from Xiamen Gaoqi International Airport in Fujian.

Forty years ago, the airport, barely meeting the minimum standards for a stopover facility, struggled to support the development needs of the Xiamen Special Economic Zone (SEZ). Also, the newly established Xiamen Airlines faced a severe funding shortfall, unable to afford the enormous cost of purchasing aircraft.

To address the funding gap, President Xi, then vice mayor of Xiamen, pioneered the innovative model of "pioneering foreign debt use for infrastructure" in Fujian. He successfully secured an $18 million loan from Kuwait. To resolve Xiamen Airlines' aircraft shortage, Xi coordinated with financial institutions to provide guarantees that enabled the airline to lease two Boeing aircraft from the US.

"Nobody at that time could have imagined using modern financial tools to raise and allocate funds for economic development, but President Xi had the vision and courage to turn what seemed nearly impossible into reality," said Zhou Yeliang, former president of the People's Bank of China (PBC)'s Fuzhou branch.

Xiamen marked Xi's first post in Fujian and his initial hands-on experience in advancing reform and opening-up in a developed coastal region. The SEZ lacked funds, and enterprises needed financial support. Xi led efforts to advance financial system reforms, making Xiamen a pioneer in building a financial system for the SEZ.

Backed by strong financial support, Xiamen Airlines' "Egret" has continued to grow. Today, it operates a fleet of over 210 aircraft.

At the Industrial Bank's headquarters history exhibition hall, two commemorative share certificates are on display, showing that the finance department of Ningde municipal government in Fujian subscribed to 2 million and 1 million original shares of the bank in two rounds, totaling 3 million yuan ($414,000).

"The decision to invest in Industrial Bank was made by Xi. It significantly benefited both the financial development of Ningde and Industrial Bank itself," said Chen Yun, the bank's founding president. Following the investment, the bank accelerated the establishment of branches in the city, extending services to the county level and injecting financial vitality into Ningde's economic growth.

Finance is one of the top priorities of the country, closely tied to the broader goal of Chinese modernization. Throughout modern history, the rise of global powers has often been driven by their financial strength, with many countries' modernization journeys progressing from industrial and trade powers to financial powers.

In Xiamen, Xi led the formulation of a strategy for Xiamen's economic and social development from 1985 to 2000, which included a dedicated chapter on the city's financial development strategy, introducing forward-looking concepts like offshore financial services and a deposit insurance system.

In eastern Fujian, Xi pioneered the idea of developing "living timber loans" and spearheaded forest rights system reforms, creating a legacy of "opening the bank's doors to unlock the value of mountains."

In Fuzhou, capital of Fujian Province, the "3820" strategic project included a dedicated chapter on financial development planning, outlining a grand blueprint for financial reform and development.

"Since the 18th CPC National Congress, President Xi has placed strong emphasis on financial work, delivering a series of key discourses that offer fundamental guidance for the new era. On the new journey of the new era, we must thoroughly study and implement President Xi's important discourses on financial work and his important speeches during inspections in Fujian, inherit and carry forward the important concepts and major practices from his time in Fujian, and promote the development of our province's financial sector to new heights with strong political, ideological, and practical resolve," said Zhou Zuyi, secretary of the CPC Fujian Provincial Committee.

President Xi consistently emphasized the fundamental role of finance in the modern economy, deeply grasping the essence, positioning, principles, and functions of finance, providing early experiences and practical models for the path of financial development with Chinese characteristics.

At the central financial work conference in 2023, President Xi, with a broad strategic vision and deep historical insight, systematically outlined the essence of the path of financial development with Chinese characteristics. The principle of "follow the centralized and unified leadership of the CPC Central Committee over financial work," which was one of the eight core principles, serves as the fundamental guarantee for this path.

The people-centered nature of financial work is grounded in the value of putting the people first. During his time in Fujian, Xi consistently upheld the principle of "putting people first," adhering to "finance for the people," leveraging financial tools to fulfill responsibilities for the people, devising strategies for their prosperity, and delivering benefits to them.

Fulfilling finance's duty

The economy and finance are two sides of the same coin, intertwined and interdependent. Finance should play its role in serving the real economy, President Xi has repeatedly emphasized.

Smart dimming, heated defogging, video playback—Fuyao Group's innovations are redefining automotive glass. Today, Fuyao Group employs over 4,000 researchers and holds the top global market share in automotive glass. However, in the 1990s, the company faced a survival crisis due to delays in securing a bank loan.

Xi made the decision on the spot and instructed the local government to help resolve Fuyao Group's liquidity issues. Soon after, Fuyao Group secured foreign investment, followed by a loan of over 100 million yuan from the Agricultural Bank of China, saving the company and setting it on a path of stable growth.

When finance thrives, the economy thrives; when finance is stable, the economy is stable; when the economy prospers, finance prospers; when the economy is strong, finance is strong. Xi contemplated the dialectical relationship between economy and finance.

"President Xi addressed every specific difficulty raised by financial institutions," Zhou recalled. With his "act now, deliver results" approach, Xi created a favorable environment for financial development, motivating institutions to support local economic growth.

With Xi's direct backing and strong support, a city cooperative bank in Fuzhou was established in December 1996, later renamed Haixia Bank of Fujian. Today, the bank continues to grow by serving the local economy, small and medium-sized enterprises, and urban and rural residents.

Infrastructure projects, with their large funding needs, urgently require financial backing.

With strong financial support, a series of key projects overcame funding gaps, were completed, and put into operation, greatly improving lives and boosting local development.

Technological innovation is a key focus for financial support of the real economy.

Fuzhou High & New Technology Industrial Development Zone, one of the first national high-tech zones planned and established under Xi's leadership during his time in Fuzhou, has grown from 5 square kilometers to 196 square kilometers, with output rising from 1 billion yuan to 129.5 billion yuan. 

Xi has consistently prioritized using finance to promote the deep integration of technological and industrial innovation.

"We must make significant efforts in the areas of technology finance, green finance, inclusive finance, pension finance, and digital finance," as stressed at the 2023 central financial work conference. The five priorities were identified as key areas for coordinating economic and financial high-quality development, anchoring the focus of the path of financial development with Chinese characteristics.

With the world's largest banking assets and forex reserves, and the second-largest bond and insurance markets, China's financial sector, guided by its mission to serve the real economy, continues to achieve high-quality development, propelling China from a financial power to a financial powerhouse.

Inclusive Finance 

"Xiadang Township, with 'nine parts mountains, half water, and half a field,' was once notoriously poor and backward in all of Ningde." Wang Mingzu, the former Party secretary of Xiadang Village in Shouning County, Fujian's Ningde, has witnessed its tremendous transformation.

With financial support, Wang's family has made a living from tourism. "Back then, with a 40,000 yuan loan from the credit cooperative, the guesthouse was successfully opened. In recent years, whenever we needed funds for upgrades and renovations, the credit cooperative proactively provided doorstep service."

During his tenure in Fujian, Xi visited Shouning nine times and Xiadang three times to guide poverty alleviation efforts, pioneering the deep involvement of Chinese finance in poverty reduction work.

In July 1989, upon Xi's arrival in Xiadang, local villages did not yet have a rural credit cooperative. He stressed that rural financial services are vital for poverty alleviation and prosperity, and rural credit cooperatives must be deeply rooted in rural communities to effectively provide credit for poverty alleviation.

Under Xi's instructions, local financial authorities took immediate action. In the same year, they guided the upgrade of Xiadang Township's Credit Station to a full Rural Credit Cooperative and bolstered its human resources and technical capabilities, thereby filling the void in financial services in Xiadang. 

Who is financial development for, who sustains it, and who benefits from it? This is a fundamental question in pursuing the path of financial development with Chinese characteristics.

At the central financial work conference in 2023, upholding a people-centered approach as value orientation was explicitly listed as one of the eight key points.

Fujian's unique agriculture thrived, with abundant mountain and sea resources, but financial services were hard to deliver promptly in remote mountainous and maritime areas.

Wherever the people are, financial services follow. Under the guidance of the PBC's Fujian branch, Ningde expanded rural credit from land to sea. By the end of March this year, 23 maritime credit fishing zones had been established, providing over 3.6 billion yuan in credit support to fishermen in these zones.

Enhancing the coverage and accessibility of financial services is a crucial aspect of upholding the political and people-centered approach of financial work. During his tenure in Fujian, Xi emphasized leveraging inclusive finance to alleviate poverty and boost rural incomes.

In 2013, the Third Plenary Session of the 18th Central Committee of the CPC formally proposed "developing inclusive finance." Over the past decade, China's inclusive finance has made major strides, with financial service coverage steadily expanded, achieving the goal of "institutions in every township, services in every village, and accounts for every household."

Reform and Innovation

In Lujiang Avenue in Siming District, Xiamen, the headquarters of Xiamen International Bank overlooks Gulangyu island across the sea. It is China's first joint venture bank with foreign capital. Xiamen's first foreign-funded enterprise, China's first cross-Straits highway bridge, and the once tallest building in Xiamen have all received financial support from Xiamen International Bank.

Xi attached great importance to Xiamen International Bank, personally offering guidance on the bank's preparation work.

"The establishment of Xiamen International Bank has provided financial support for the construction of Xiamen Special Economic Zone and played a pioneering role for China's financial system reform," said Zhu Mengnan, a professor at the School of Economics of Xiamen University.

Reform and innovation are vital drivers of the high-quality development of the financial industry.

Regarding financial reform, Xi has always been clear in stance and decisive in action.

During his tenure in Xiamen, Xi achieved notable results in promoting the reform of the financial system and put forward the visionary "Seven Financial Reforms."

From local pilot efforts to national initiatives, China's financial reforms have consistently pushed through barriers with determination.

Efforts have been made to improve the financial market and financial infrastructure system, and deepen supply-side structural reforms in finance; build a higher-standard open financial system, promote the yuan's internationalization in a steady and prudent manner, and actively engage in global economic and financial governance; promote the coordinated investment and financing functions of the capital market to better serve Chinese modernization... Since the new era, the breadth and depth of financial reform and opening-up have continued to expand.

From credit culture to financial culture with Chinese characteristics, Xi has adapted Marxist financial theory to the specific realities of contemporary China and excellent traditional Chinese culture, charting a path for enhancing financial soft power and building China into a financial powerhouse.

With the goal of accelerating the development of a strong financial nation, following the path of financial development with Chinese characteristics, and advancing national rejuvenation by high-quality financial development, Chinese modernization holds bright prospects.

This article was compiled from an article that was originally published on the front page of the People's Daily on June 24, 2025.