Liu Zhiqin, a senior fellow at the Chongyang Institute for Financial Studies of Renmin University of China, was interviewed by CCTV Global business program on inclusive finance and Fed`s rate decision on Aug.26th.

Q. Why is the inclusive finance so important?

A. Because the inclusive finance is the testimony of the government’s capability of governance. The clients, the weak, normal people, are important. They need special support from the central government, which make it important.

Q. What do you think of the conflicts between commercial banks and the individuals that cannot afford the profit of the bank?

A. This is a fundamental question. What is the inclusive economy for? The answer is for the most people of the society. We should serve the people first instead of serve the profit and the interest group.

Q. What do you think of people’s keen on the programs like P2P?

A. People get to realize that inclusive finance is the best and the safest way for them to finance. And without the participation of small players, the inclusive finance would just be a slogan.

Q. What kind of US domestic factors does Yellen need to consider on rate decision?

A. The date of election is approaching and the government should show their performance in economy. Condition in the US is better than people’s expectation, especially in employment. So the rate should not be changed for the situation is stable now.

Q. What do you expect of Fed’s rate decision?

A. It is hard for it to make the decision because it needs to negotiate a lot with other nations. The time for the US to raise the rate would be some years later, but if the US would be booming and optimistic the world will benefit from that.

Q. How do you think the economies could protect their currencies?

A. For the emerging markets especially for China, the country should take actions, make transformation and move forward，which would also help to remove the excess capacity. Otherwise the emerging market would face a tougher condition next year.

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