Inclusive Finance,Income Gaps and Common Prosperity

According to the Report to the 20^(th) CPC National Congress,delivering common prosperity for all the people is an intrinsic requirement of Chinese modernization.Based on China Household Finance Survey(CHFS)data from 2015 to 2019,this study examines the effects of inclusive finance on China’s household income disparities and demonstrates how inclusive finance contributes to shared prosperity.Our empirical research reveals that inclusive finance has significantly decreased the income disparities between Chinese households.Inclusive finance has significantly increased the income levels of households below the 40^(th) percentile,making it more likely for them to move above the 40^(th) percentile of incomes,which is conducive to delivering common prosperity.Our analysis indicates that inclusive finance will reduce income disparities by assisting low-income households in starting a business and by promoting rural household employment.Reflecting its inclusive nature,further investigation reveals that inclusive finance has a greater positive impact on the income level of vulnerable households.Our research offers new evidence for comprehending the role of inclusive finance and a new interpretation of income disparities,with policy implications for accelerating Chinese modernization.

Journal Introduction:China Finance Review International

Background The China Finance Review International is a flagship academic journal broadly covering the Chinese and international financial markets.The journal is founded by Antai College of Economics and Management at Shanghai Jiao Tong University,one of the top universities in Asia.The China Finance Review International aims to publish quality empirical and theoretical works on important financial and economic issues in the profession.We encourage ground-breaking research related to new and niche areas in finance,such as Fintech and cryptos,ESG,climate finance,and socially responsible investments.We welcome critiques of existing literature and comparative analysis between emerging markets and developed economies.

Accelerating the Digitalization Process in Rural China and Promoting Common Prosperity

Under the historical background of promoting agricultural and rural modernization in an all-round way,this paper deeply analyzes the practical significance of digital construction in rural China,and explores the problems in the digitalization level of rural infrastructure,farmers digitalization awareness and accomplishment,and agricultural digital system.Countermeasures and suggestions are put forward from four aspects:digital village construction policy system,rural digital infrastructure construction,rural digital talent cultivation system,and agricultural digital system,and the rural digital construction of Huzhou City is taken as an example,in order to further realize the goal of empowering rural farmers with digital technology for common prosperity.

The Impact of Digital Finance on High-Quality Development of the Chengdu-Chongqing Economic Circle

This paper developed a comprehensive evaluation system that was able to quantify the levels of high-quality development across the cities within the Chengdu-Chongqing economic circle,and investigate the impact that digital finance had on the cities’high-quality development and the underlying mechanisms through which it achieved this.This comprehensive evaluation system was constructed using statistical data from these cities for the period 2014 to 2020 while also taking China’s high-quality development philosophy into account.The key findings revealed that:(a)Digital finance was able to significantly promote high-quality development in the Chengdu-Chongqing economic circle;(b)Digital finance had a significant positive effect in promoting innovative,coordinated,green,open,and shared development;(c)Digital finance was able to stimulate the high-quality development in the Chengdu-Chongqing economic circle by boosting entrepreneurial dynamism;(d)Digital finance had a significant impact on the high-quality development of the axis areas,while its impact was less discernible in non-axis areas.The insights from this research offer a deeper understanding of the factors that drive high-quality development,the role digital finance plays,and the mechanisms through which digital finance is able to propel high-quality development at the city cluster scale.

A study on the influencing factors of rural tourism promoting households'shared prosperity in Yinan County of Shandong Province

This study examines the influencing factors of rural tourism in promoting shared prosperity among households,using the case study of Yinan County in Shandong province,China.The research aims to provide insights into the economic benefits experienced by low-income households in the context of rural tourism development.Based on field research conducted from April 8,2023,to May 17,2023,including interviews and site visits,the study constructs an evaluation index system to assess the influencing factors.Through expert scoring and the application of a weighted set-valued mathematical statistical model,the importance and quantification of each factor are determined.The results indicate that the current stage of promoting shared prosperity through rural tourism in Yinan County is primarily influenced by the scale of tourist consumption of external visitors.This factor outweighs others such as the participation capacity and willingness of low-income households,the capacity of investment enterprises,and the policies and financial allocation of the local government.The findings emphasize the significance of external visitor spending and highlight the need to address the obstacles faced by low-income households in accessing economic benefits.The evaluation index system and measurement model presented in this study offer a scientific basis for assessing and improving the income situation of low-income households in rural tourism development initiatives.However,it is crucial to note that the importance of these influencing factors may evolve with the lifecycle of the tourism destination.Future research should include long-term tracking and consider a broader range of indicators to deepen our understanding of their mechanisms and significance.Furthermore,alternative approaches and theories may provide valuable perspectives for further exploration in this field.

Youth Exchange“Harmony for Shared Prosperity”

Contemporary World Magazine,which is affiliated to the International Department of the CPC Central Committee(IDCPC),held an exchange act ivi ty themed on“Harmony for Shared Prosperity”in Beijing on May 7,2024.

China Natural Gas Industry Prosperity Index for the 1st Quarter of 2024

The statistics of the China matural gas industry prosperity index showed that the China natural gas industry prosperity index was 302.84 in the 1st quarter of 2024,up 3.6%from the 4th quarter of 2023,a stably prosperous state in the short term and a very prosperous state in the medium to long term;the prosperity index of natural gas production companies was 428.78 in the 1st quarter of 2024.

Study on the Measurement of the Development Level of Common Prosperity

Constructing a comprehensive prosperity evaluation index system from the dimensions of“affluence”and“commonality,”consisting of 23 detailed indicators,this study utilizes the entropy method and provincial panel data from 2011 to 2020 to measure the level of common prosperity across Chinese provinces.The research findings indicate an overall upward trend in the common prosperity development level among provinces during the sample period.Beijing,Shanghai,Zhejiang,Guangdong,and Jiangsu exhibit the highest common prosperity indices at the provincial level.From a spatial perspective,significant disparities exist in the common prosperity levels among different regions.Consequently,policy recommendations are proposed:Tailoring strategies for regional development based on realities,reinforcing regional coordinated development,and promoting the advancement of common prosperity.

Pockets of Prosperity

As African countries look to enhance their manufacturing industries and speed up industrialisation,they are learning valuable insights from the development experience of industrial parks worldwide,particularly from China.

The Macroeconomic Impact of Internet Finance

This paper investigates the macroeconomic impacts of Internet finance,highlighting its advantages and challenges.Internet finance,a fusion of Internet technology with traditional financial practices,introduces innovative models for global asset management,capital financing,payments,investments,and intermediary services.While it enhances the accessibility and efficiency of financial services,it also introduces new risks,such as higher credit default rates.This study explores how Internet finance contributes to financial inclusivity and macroeconomic growth yet poses potential threats to traditional financial stability.The dual aspects of Internet finance are analyzed:its application in existing processes and its capacity to generate novel business models.Furthermore,the paper proposes strategic responses to mitigate the negative impacts of Internet finance,mainly focusing on risk management and regulatory improvements to safeguard economic stability.

Green Finance Promotes High-Quality Development of Regional Economy

With the rapid development of the social economy,the role of green finance in promoting the high-quality development of regional economies is increasing day by day.The advancement of green finance not only aids in fostering the green transformation and upgrading of regional economies but also helps mitigate the risks of environmental damage stemming from traditional economic activities.In this new era,it is imperative to embrace the concept of green finance development and innovate green finance practices to further drive high-quality regional economic development.This paper will analyze the significance of green finance in regional economic development,assess the current state of green finance development,and propose optimization strategies for green finance to facilitate high-quality economic development.

Research on the Impact of Digital Finance on Energy Efficiency in China

Digital finance and green technology innovation(GTI)serve as powerful engines for promoting energy efficiency(EE)and economic development.This paper explores the mechanism by which digital finance impacts EE based on panel data from 30 provinces in China spanning from 2011 to 2019.The results demonstrate that digital finance can significantly enhance EE,with a particularly pronounced effect in the eastern region.Through mechanistic analysis,it is evident that GTI serves as the transmission pathway through which digital finance influences EE,accounting for 45.3%of the effect.The policy implication of this study suggests that China should expedite the digitization of financial markets to further harness the development of digital finance,particularly in pursuit of its technological innovation and green,lowcarbon environmental protection effects.

A Mechanism for Digital Finance to Drive Green and Low-Carbon Development

Given the global focus on green and low-carbon development and the increasing prominence of digital finance,it is particularly important to explore how to leverage digital finance to achieve these environmental goals.This study,through mechanism analysis,deeply examines how China’s digital finance promotes green and low-carbon development and elucidates the positive interaction between digital finance and the green industry.The study found that digital finance,through more flexible and efficient financial functions,alters the cost structure of carbon emissions,and reduces the risks and costs of green investments,thereby creating a cooperative green mechanism benefiting all parties,and guiding social groups toward a green and low-carbon transformation.Additionally,the rapid development of digital finance has strengthened the implementation of environmental protection policies,effectively promoted the expansion of the environmental protection industry,and established the green ethos as a mainstream concept in financial development.This study aims to provide reference perspectives and suggestions,assist policymakers in promoting the green and lowcarbon development of digital finance,and offer insights into the integrated development of digital finance and the green environmental protection industry.

The Logic of Digital Finance in the Age of Digital Economy

This paper explores the development logic,trends,and challenges of digital finance in the era of the digital economy.As a crucial component of the digital economy,digital finance has completely transformed the traditional financial services model through factors such as technological innovation,data intelligence,and personalized user experiences,paving the way for new business models and market opportunities.However,the rapid development of digital finance also faces challenges such as competition,security,and regulation.This paper emphasizes the importance of finding a balance between innovation and security in the development of digital finance and discusses the potential of digital finance in promoting financial inclusion and sustainable development.Through comprehensive analysis,this paper aims to provide valuable insights for academic researchers and industry practitioners,promoting the healthy development of digital finance.

Rice vs.Wheat:How Rice Farming Shaped Informal Finance in China

China’s financial system is characterized by the coexistence of both formal and informal finance,and informal finance appears to be more prevalent in the south of the country compared to the north.In this paper,we use the historical demarcation of rice-farming regions and the percentage area of rice sown to ascertain the regional distribution of rice farming in the south and wheat farming in the north in order to analyze the role of rice farming in the evolution of different types of financial institutions in China.We find that rice cultivation has a positive effect on informal financial development,though its impact on formal finance is insignificant.Unlike wheat farming,rice cultivation requires farmers to collaborate during busy farming seasons and necessitates the construction of irrigation systems.Such collaboration helped enhance an acquaintance society,in which both parties to transactions enforced the rules and contract terms of their own initiative,paving the way for informal finance.This paper not only demonstrates the cultural roots of the regional financial disparities in China but also expands the research on the ways in which farming practices from the past have shaped the development of China’s present financial markets.

The Institutional Framework of Common Prosperity in the Process of Chinese Modernization

The report to the 20th CPC National Congress makes it clear that achieving common prosperity for all is an essential requirement of Chinese modernization,and that China has come to a historical period when concrete measures can be taken to promote common prosperity with a well-researched and effective system.In the new journey of Chinese modernization,we must correctly understand productive forces and production relations,properly handle the relation between efficiency and fairness,and promote common prosperity with sound systems.Therefore,efforts must be made to create an institutional framework of common prosperity that involves three pillars—socialism with Chinese characteristics as the fundamental system,improving the efficiency and vitality of productive forces as the basic system,and preserving fairness and adjusting productive relations and income distribution as the foundational system.To succeed,we must do the following three things.First,we should uphold the system where the Party leads the country,and all our work and the people run the country.Second,we should improve the basic economic system in which public ownership is the mainstay,the high-level socialist market economy,related systems,to promote high-quality economic development,and auxiliary systems to realize common prosperity with the digital economy.Third,we should perfect the institutional arrangements related to primary,secondary,and tertiary income distribution.

The Digital Inclusive Finance and Enterprise Innovation:Evidence From A-Share Market

In China,the integration of digital technology and finance has gradually formed a digital supply mode of inclusive finance,which alleviates the financing limitations of small and medium-sized businesses to a certain extent and is significant for enterprise innovation activities that need financial support.Under the National Innovation-driven Development Strategy,it is particularly meaningful to evaluate whether digital inclusive finance can foster company innovation.This article empirically evaluates the impact of digital inclusive finance on firm innovation and development using data from all listed companies on the Shanghai Stock Exchange and Shenzhen Stock Exchange from 2011 to 2018 together with the city level digital inclusive finance index.The result shows how digital inclusive financing may support businesses’innovative processes,and its role in promoting innovation differs among enterprises of different scales,but such heterogeneity effect can be absorbed by industry effect and time effect.The result of this paper sheds lights on the role of digital inclusive finance in improving enterprise performance by solving the financing dilemma of them,and according to the empirical results,this paper suggests that the support for digital inclusive finance should be further improved in order to promote the good and healthy development of the real economy,which refers to the part of a country’s economy that produces goods and services,rather than the part that consists of financial services such as banks and stock markets.

Analysis of China Natural Gas Industry Prosperity Index for the 2nd Quarter of 2023

The statistics of the China Natural Gas Industry Prosperity Index showed that the China Natural Gas Industry Prosperity Index was 266.31 in the 2nd quarter of 2023,up 3.5%from the 1st quarter of 2023,a stably prosperous state in the short term and a very prosperous state in the medium to long term;the prosperity index of natural gas production companies was 371.69 in the 2nd quarter of 2023,up 5.1%from the 1st quarter of 2023,an increasingly prosperous state in the short term and a very prosperous state in the medium to long term.

Dilemmas and Prospects of the World Bank’s Climate Finance

Currently,the World Bank is carrying out a new round of reforms for climate finance.In December 2022,the World Bank released the Evolutionary Roadmap(the Roadmap),in which the proposed climate finance reform program was introduced.In February 2023,then President Malpas,a climate change skeptic,announced that he was stepping down from his post,and Ajay Banga,a former advisor to the Climate Investment Funds(CIFs).

Analysis of China Natural Gas Industry Prosperity Index for the 3rd Quarter of 2023

The statistics of the China natural gas industry prosperity index showed that the China natural gas industry prosperity index was 277.03 in the 3rd quarter of 2023,up 4.0%from the 2nd quarter of 2023,a stably prosperous state in the short term and a very prosperous state in the medium to long term;the prosperity index of natural gas production companies was 390.88 in the 3rd quarter of 2023,up 5.2%from the 2nd quarter of 2023,an increasingly prosperous state in the short term and a very prosperous state in the medium to long term;the prosperity index of natural gas sales companies was 181.91 in the 3rd quarter of 2023,up 3.3%from the 2nd quarter of 2023,a recovery in the short term and a prosperous state in the medium to long term;the prosperity trend index of the natural gas industry in the coming year for the 3rd quarter of 2023 was 538.84,up 6.4%from the 2nd quarter of 2023,a very prosperous state,indicating that natural gas industry experts are optimistic about the natural gas industry’s prosperity trend in the coming year(Fig.1 and Table 1).