Releasing a series of major financial signals, the phrase "one bank, one bureau, one meeting" continues to be used in forums | Finance | One Bank
The 14th Lujiazui Forum opened on June 8th, marking the first time that major leaders of the national financial regulatory department have collectively spoken out on public platforms simultaneously after the National People's Congress and the Chinese People's Political Consultative Conference announced the reform of the national financial regulatory system, with unprecedented attention. On the forum, the top tier guests of "one line, one game, one meeting" actively responded to market trends around the forum theme, releasing a series of significant signals through continuous golden phrases.
Talking about service entities
Serving entities is the primary task of finance. Li Yunze, Director of the State Administration for Financial Regulation and Co rotating Chairman of the Forum, stated that it is necessary to effectively enhance the effectiveness of serving the real economy. Increase financial support for new consumption and service consumption, and promote bulk consumption of new energy vehicles, green appliances, and other products. Strengthen financing guarantees for investment, support major projects such as urban village renovation in mega cities and the construction of public infrastructure for both emergency and urban use. Following the pace of the new round of technological revolution, we will increase support for high-level technological self-reliance and self-improvement, and promote a virtuous cycle of "technology industry finance". Adhere to the principle of "two unwavering", optimize the environment for private investment and financing, strengthen financial services for private enterprises, and nurture the passion of private enterprise entrepreneurship and development.
Yi Huiman, Chairman of the China Securities Regulatory Commission, introduced that technology innovation enterprises account for over 70% of newly listed enterprises, and a number of leading industries such as integrated circuits, biopharmaceuticals, and new energy have significant agglomeration effects. "We will deeply implement the innovation driven development strategy, adhere to the differentiated and distinctive positioning of the Science and Technology Innovation Board, ChiNext, and Beijing Stock Exchange, and explore the establishment of a comprehensive and full cycle product system covering stocks, bonds, and private equity." He revealed that he will timely introduce policy measures to further support high-level technological self-reliance and self-improvement in the capital market.
On Risk Prevention and Control
"At present, the overall operation of China's financial industry is stable, and risks are generally controllable. We have the conditions, confidence, and ability to firmly guard the bottom line of preventing systemic financial risks." Li Yunze, while full of confidence, also talked about the recent consecutive risk events in the international banking industry. Although the direct impact on China is small, it also has strong warning significance. We need to prudently resolve existing risks and resolutely curb incremental risks.
Yi Huiman believes that preventing and resolving financial risks is the eternal theme of financial work. The China Securities Regulatory Commission will work together with relevant parties to strengthen macro analysis, closely track and analyze input risks in the international financial market, improve cross market and cross industry cross-border risk monitoring, early warning and disposal mechanisms, and continuously improve the comprehensive efficiency of risk response. Innovate methods, highlight key areas, prudently and orderly resolve bond default risks, and continuously increase the rectification of risks in key areas such as "pseudo private equity" and local trading venues.
On Financial Supervision
Recently, the volatility of the stock market has increased, and the rotation of hot topics in sectors has accelerated. Discussions on quantitative trading, market fairness, short-term fund speculation, and industry institutional responsibilities have increased. At the forum, Yi Huiman faced market hot topics head-on. He also stated that the China Securities Regulatory Commission attaches great importance to capital market supervision, will continue to strengthen market trading behavior monitoring and supervision, do a good job in tracking and analyzing new trading methods such as quantitative trading, resolutely crack down on illegal and irregular activities such as insider trading and market manipulation, and effectively maintain a healthy and healthy market order and ecology.
Focusing on creating a new situation in financial regulatory work, Li Yunze pointed out that we must resolutely eliminate regulatory gaps and blind spots, clarify the boundaries of responsibility, tighten the chain of responsibility, strengthen comprehensive governance, improve the responsibility system of multi subject participation, multi field cooperation, and multi-level connectivity, and truly achieve "full coverage and no exceptions" in regulation. Continuously rectify the chaos in the financial market and severely punish serious illegal and irregular behaviors. Effectively safeguard the legitimate rights and interests of financial consumers, and continuously enhance the sense of gain, happiness, and security of the general public.
On Green and Low Carbon
Green development is an important new driving force for economic recovery. The President of the People's Bank of China, Yi Gang, pointed out that achieving the 30/60 target requires a carrot and a big stick. The significant increase in carbon emission costs can be understood as a "big stick", while a moderate increase is a "medium stick" or "small stick", and the support tools established by the People's Bank of China are the "carrot" in the incentive mechanism. As of the end of April 2023, the balance of carbon emission reduction support tools has reached nearly 400 billion yuan, supporting financial institutions to issue loans of about 670 billion yuan, and driving carbon emission reduction of over 150 million tons, achieving good results.
He believes that Shanghai is the location of the national carbon emission trading market and started relatively early in the green and low-carbon transformation. In recent years, Shanghai has proposed the goal of building an international green finance hub, taking the lead in launching multiple green finance products, fully mobilizing the enthusiasm and innovation of market entities. In the future, Shanghai can play a greater leading role in the field of green finance.
On Opening Up to the Outside World
"The door to the opening of the financial industry will only continue to widen," said Li Yunze with a resounding voice. He made it clear that in the future, he will continue to adhere to the combination of "bringing in" and "going out", steadily promote high-level opening up of the financial industry to the outside world, and continue to create a market-oriented, legal, and international business environment. In the fields of wealth management, green finance, elderly care and health, asset management, etc., we warmly welcome foreign-funded institutions with stable operations and excellent qualifications to come to China for business development, and encourage eligible foreign-funded institutions to participate in various business pilot projects.
Yi Huiman also stated that he will adhere to the basic policy of opening up to the outside world without wavering, firmly promote all-round opening up of markets, institutions, and products, solidly promote overseas listing and filing work, strengthen practical cooperation with the Hong Kong market, expand and optimize the interconnection mechanism with overseas markets, and accelerate the construction of a high-level institutional two-way opening pattern.
On Monetary Policy
Turning to China's financial cycle in recent years, Pan Gongsheng, Vice President of the People's Bank of China and Director of the Administration of Foreign Exchange, introduced that since 2020, the yield to maturity of 10-year treasury bond has fluctuated narrowly between 2.4% and 3.4%, with the extreme difference between the highest and lowest points being less than 100 basis points, significantly lower than the US's nearly 400 basis points in the same period. The scale of social financing in China maintains a growth rate of about 10%. The reason behind the relatively stable financial cycle in China is its long-term adherence to a prudent monetary policy. China's monetary policy adheres to the principle of self centeredness, with a focus on cross cycle and internal and external balance. It does not follow the Federal Reserve's "large-scale increase in income", nor does it engage in competitive zero interest rate or quantitative easing policies.
Pan Gongsheng stated that since 2023, the overall operation of China's foreign exchange market has been stable, and the RMB exchange rate has remained basically stable at a reasonable and balanced level. Looking ahead, China's foreign exchange market still has a solid foundation for stable operation. "We have confidence, conditions, and the ability to maintain the stable operation of the foreign exchange market."
