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This analysis will be used to support a series of economic measures, from liberalising interest rates to boosting innovation and loosening the grip of competition-stifling state-owned enterprises (SOEs) on vital areas of the economy (see article).
The central bank, for its part, has taken a step towards liberalising interest rates: since January this year, banks have been able to charge up to 70% more than the benchmark lending rate (rather than 30%), according to the riskiness of the borrower.
In July, the central bank, People's Bank of China (PBOC), scrapped the lower limit on lending rates offered by financial institutions, a key step towards liberalising interest rates.
The central bank also scrapped the lower limit on lending rates offered by financial institutions last year, a key step towards liberalising interest rates.
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To follow through on its promise to liberalise interest rates would make a welcome ninth.
Similarly, the central bank has moved to liberalise interest rates, but progress has been slow, with deposit rates still capped.
As well as cutting the SOEs' perks, Mr Xi should take further steps to liberalise interest rates, exchange rates and capital flows.
Were China, for example, to liberalise interest rates and capital flows without removing any of the SOEs' privileges, it might find that finance simply flows more freely to the same firms that already gobble up more than their fair share.
Thus any scheme to free up the capital account should also liberalise interest rates and the exchange rate, overhaul monetary policy, improve the way Chinese banks are run and supervised, and foster deeper, better-regulated financial markets.
Indeed, as a sop to the big four banks, plans to liberalise interest rates within three years have been delayed.A big chunk of people's deposits ends up funding SOEs that make goods nobody wants to buy, build offices nobody wants to occupy, and so forth.
Also, although one of the reforms is to liberalise interest rates and the exchange rate, opening up the capital account - that is, allowing more short-term capital to flow across borders - it isn't a priority.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com