What does he think?, Pan Gong is competent as the Party Secretary of the Central Bank! Adhere to Hot Financial Issues | People's Bank of China | Technology | Market | China | Regulatory | Finance | Pan Gongsheng
The People's Bank of China welcomes a new Party Secretary.
According to the website of the People's Bank of China, on the afternoon of July 1, 2023, the People's Bank of China held a leadership meeting. The relevant officials of the Central Organization Department announced the central decision: Comrade Pan Gongsheng will be appointed as the Secretary of the Party Committee of the People's Bank of China, and Comrade Guo Shuqing will be relieved of his position as Secretary of the Party Committee of the People's Bank of China and Comrade Yi Gang will be removed from his position as Deputy Secretary of the Party Committee of the People's Bank of China.
Pan Gongsheng, born in 1963, has nearly 30 years of work experience in the financial system. He is currently the Secretary and Vice President of the Party Committee of the People's Bank of China, and the Secretary and Director of the Party Group of the State Administration of Foreign Exchange.
He is a witness and witness to China's financial reform and opening up in recent years. Pan Gongsheng has responded to several major financial hot topics that everyone is concerned about.
Promoting the real estate industry
Smooth transition to a new development model
In March of this year, Pan Gongsheng stated at a press conference of the State Council Information Office that since the second half of 2021, some real estate companies represented by Evergrande have suffered from severe "hypertension" due to long-term high leverage, high debt, and high turnover operations. In response to the adjustments in the real estate market, the financial regulatory authorities have issued the "16 Financial Measures", focusing on both supply and demand to promote the smooth operation of the real estate market, and have introduced plans to improve the balance sheets of high-quality real estate enterprises.
He stated that with the improvement of the epidemic situation and the adjustment of epidemic prevention and control policies, the role space of policies introduced in the early stage has greatly improved. Recently, the transaction activity of the real estate market has increased, and the financing environment for real estate enterprises, especially high-quality real estate enterprises, has significantly improved.
Pan Gongsheng stated that the next step will adhere to the positioning of "housing for living, not for speculation", carefully summarize and learn from the development experience and lessons of the Chinese real estate market, support the demand for rigid and improved housing, support the housing demand of new citizens, support the system of both renting and purchasing, and promote the smooth transition of the real estate industry to a new development model.
Cannot make technology a "protective color" for illegal and irregular behavior
On April 12, 2021, the People's Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange and other financial management departments jointly held another interview with Ant Group. Pan Gongsheng, Vice President of the People's Bank of China, answered questions from reporters on behalf of four departments regarding the interview situation.
Pan Gongsheng mentioned that the financial management department will adhere to the principles of fair and strict supervision, focus on the long term, take into account the current situation, fill in shortcomings, strengthen weaknesses, promote fair competition, oppose monopolies, and prevent disorderly expansion of capital.
One is to adhere to the principle of "finance first, technology empowerment". Platform enterprises conducting financial business should prioritize serving the real economy and preventing financial risks, and should not make technology a "protective color" for illegal and irregular behavior. Serious investigation and punishment shall be carried out in accordance with the law for illegal business operations.
The second is to adhere to the inclusion of all financial activities in financial supervision. Financial business must be licensed for operation; Enhance regulatory capacity and level, optimize regulatory framework, and prevent regulatory arbitrage.
The third is to adhere to the equal emphasis on development and standardization. Strengthen supervision in accordance with the law, regulate market order, prevent market monopolies, safeguard data property rights and personal privacy; At the same time, grasp the development laws of the platform economy, enhance the experience of financial services, and consolidate and enhance the international competitiveness of platform enterprises.
Back then, Pan Gongsheng published a signed commentary in the Financial Times, stating that financial regulation depends on the substance of institutions, not the form of organization. Given that the essence of fintech is finance, China's current regulatory actions in the face of various risks are similar to those of other countries in the world.
Pan Gongsheng believes that financial technology has not changed the risk attributes of finance. Due to the characteristics of cross-border, mixed, and cross regional operations in fintech, the diffusion speed of related risks is faster, the scope is wider, and the spillover effect is stronger. Moreover, due to the existence of network effects, it often leads to a "winner takes all" situation, resulting in market monopolies and unfair competition.
Some large technology companies can compete unfairly by burning money for direct subsidies or using other business profits for cross subsidies to seize market share and become "winners", and then eliminate or merge other competitors, ultimately forming a monopoly. In addition, fintech companies' thirst for data may lead to excessive collection of customer data and infringement of customer privacy.
He emphasized that since the essence of fintech is finance, it should follow the principle of "same business, same regulation", implement penetrating regulation based on substance over form, maintain general consistency in regulatory policy orientation, business rules and standards, and resolutely prevent regulatory arbitrage.
The foreign exchange market will have conditions to maintain a relatively stable operating state
"For those forces that attempted to short the renminbi, we had a fight a few years ago and were very familiar with each other. I think we should all remember it vividly." In 2018, Pan Gongsheng shouted at the forces that attempted to short the renminbi and reiterated that China would not engage in competitive devaluation. At that time, the depreciation of the renminbi was a result of multiple factors working together.
At the 14th Lujiazui Forum held in June this year, Pan Gongsheng once again talked about the exchange rate of the Chinese yuan.
He said that since the middle of April, influenced by a variety of internal and external factors, especially the US dollar index, driven by the US debt ceiling problem, the risk problem of small and medium-sized banks, and the expectation of the Federal Reserve to raise interest rates, has risen, and the US dollar index has started to strengthen since the middle of April. At the same time, coupled with the unstable foundation of domestic economic recovery, there have been some fluctuations in the RMB exchange rate, but the overall operation of the foreign exchange market is stable. The expected exchange rate of the RMB and the relative stability of China's cross-border capital flows.
In Pan Gongsheng's view, the stable operation of China's foreign exchange market still has a good foundation. One is that the overall operation of the Chinese economy remains stable with an upward trend, while some market institutions predict that the US economy may face a mild recession, and the economy is basically supported by the RMB exchange rate. Secondly, as the Federal Reserve's interest rate hike cycle approaches its end, it is difficult for the US dollar to sustain its strength, and the spillover effects are expected to weaken. Overall, the Chinese foreign exchange market will have the conditions to maintain a relatively stable operating state.
"Over the years, we have accumulated a lot of experience in dealing with external shocks, and our macroeconomic prudential tools have become more diverse. We have confidence, conditions, and the ability to maintain the stable operation of China's foreign exchange market." Pan Gongsheng said.
