Reform and economic restructuring, while pre-digested positive economic growth and policy incentives debt accumulated under pressure; the other hand, actively promote the reform of equity markets, interest rate market, exchange rates and other international financial elements, to the adoption of a system of financial reform Economic Transformation.  Focus on the 'Thirteen Five' opened a regional strategic layout, and called comprehensive innovation and entrepreneurship to promote economic road of endogenous development.  But the transition process is still facing great challenges, such as low inflation threat to the healthy development of the economy, challenges and opportunities in transition, transitional features. Zhang Ping further explained that the industrial producer price index continued for three years (PPI) has brought negative growth and low inflation pressure, the first half of 2015, PPI was -4.6%, GDP deflator was -1.6%.  You can expect the coming period, the production sector will aggravate deflation, since the consumer price index is also lower than expected, GDP deflator PPI more to follow changes in 2015, the GDP deflator is expected to be -1.4% expected annual negative growth . This resulted from the micro level of non-financial corporate profitability is lower than the cost of financing and the high cost of previously accumulated debt and high debt ratio directly reduce net capital enterprise level, the value of collateral drops, and then the economic downturn led to some companies bankruptcy, bad debts increased, prompting banks more cautious, bank credit contraction, unprofitable enterprise does not wish to invest, rather as a lender to obtain a high return on short-term liquidity.  Enterprises, local governments, banks profit from the decline in assets to decline, increased bad debts, another infection, leading to investment, credit, currency slowing money supply difficult to inject the real economy. Zhang Ping judgment be recognized some of the other experts. President of the China Economic Research Institute Zhang Liancheng believes that the current Chinese consumption and investment demand are the two falters, before too much emphasis on regulatory policy and restructuring, coupled with intellectual outflows accelerated, short international forces increasingly on China strong moral hazard insiders increases, the larger the short term downward pressure facing the Chinese economy.  Forecast 'Thirteen Five' structural slowdown is expected to intensify in addition to think that this year GDP growth target difficult to reach, the CASS further predicted that the growth rate of 'Thirteen Five' period of only 6%.
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