Institution building core task for economic health

Capital market build-up requires myriad players

Editor's Note: China is pushing supply-side reform to boost growth to cope with the economic downturn and further release the country's growth potential. In this Policy Review page, Paul Sheard, chief global economist of rating agency Standard & Poor's, talked to China Daily about how China can build up its financial institutions to help revitalize the economy and handle the challenges facing the world's second-largest economy.

The argument that demand-side management, like monetary easing and fiscal stimulus, cannot pull economies out of their woes has been commonly heard in the United States and Europe, and also here in China, where it has given rise to the government's push for supply-side reform.