The Tortuous Development of the Financial Industry During the Planned Economy Period

With the formation of China’s highly centralized and unified financial management system, the functions of finance gradually shrank to the scope of “managing funds”. However, it played a significant role in the early completion of the three major socialist transformations in China and the smooth implementation of “the First Five-Year Plan”. Subsequently, influenced by changes in social, political, and economic environments, China’s financial industry experienced a series of twists and turns, frequent adjustments, but overall presented a declining trend in financial functions and business.