On April 23, 2014, Unirule Macroeconomic Report of the 1^st Quarter of 2014 was held in Beijing at Unirule Institute of Economics. China Reform(Internal), Business Sohu.com, China Times, and China Economic Herald and another ten newspapers and media were present at the press release. Professor ZHANG Shuguang introduced the report on behalf of Unirule research team and answered questions from the press.

Professor ZHANG Shuguang pointed out that “GDP in Q 1 of 2014 increased by 7.4%. GDP growth maintained stable with a little downturn. A decrease of 0.1% from the goal set by the government is witnessed, which is a positive result from the restructuring. The economic growth maintains stable, which means policy pivoting should not be focused on investment, but on solving structural problems. The decrease in M2 growth is a result of the Internet financing. The M2 growth rate is higher than the sum of GDP and CPI growth, which is inherent to historic data. It does not mean China is going through a Debt-Deflation process. It cannot be employed to support policies that constrain the development of Internet financing. Finance plays an important role in economic development and modern governance. The government has accumulated too much financial resources, and the financial structure is far from balanced. Besides, with the state-owned enterprises expanding and taking over much resource, the government role in financial resource allocation become more and more prominent, which requires the government to pivot towards more efficient resource allocation and restructuring to push forward market-oriented reforms.”