With the 3rd plenary session of the 20th CPC Central Committee outlining further financial reforms, Liu Qiao, dean of Peking University”s Guanghua School of Management, told China Perspectives that pay cuts in the financial sector serves as a call for the sector to provide good financial service that better serves the real economy and promotes China’s high-quality development. The financial sector needs an incentive mechanism to encourage innovation that serves high-quality economic development.