Blockbuster News | The Central Financial Work Conference was held, and the main points were briefly reviewed

The Central Financial Work Conference was held in Beijing from October 30th to 31st.  

The meeting emphasized that finance is the lifeblood of the national economy and an important component of the country's core competitiveness. It is necessary to accelerate the construction of a strong financial country, comprehensively strengthen financial supervision, improve the financial system, optimize financial services, prevent and resolve risks, firmly follow the path of financial development with Chinese characteristics, and promote high-quality development of China's finance.

Overview of meeting points

We should focus on creating a good monetary and financial environment, and effectively strengthen high-quality financial services for major strategies, key areas, and weak links. Always maintain the stability of monetary policy, pay more attention to cross cycle and countercyclical adjustments, and enrich the monetary policy toolbox.

Optimize the funding supply structure, allocate more financial resources to promote technological innovation, advanced manufacturing, green development, and small and medium-sized enterprises, vigorously support the implementation of innovation driven development strategies and regional coordinated development strategies, and ensure national food and energy security. Complete five major articles on technology finance, green finance, inclusive finance, elderly care finance, and digital finance.

Optimize the financing structure, better leverage the hub function of the capital market, promote the deepening and implementation of the stock issuance registration system, develop diversified equity financing, vigorously improve the quality of listed companies, and cultivate first-class investment banks and institutions. Promote high-quality development of the bond market.

Steadily expanding institutional openness in the financial sector, improving cross-border investment and financing facilitation, and attracting more foreign financial institutions and long-term capital to come to China for business development. Enhance the competitiveness and influence of Shanghai International Financial Center, and consolidate and enhance the status of Hong Kong as an international financial center.

Effectively improving the effectiveness of financial regulation, incorporating all financial activities into regulation in accordance with the law, comprehensively strengthening institutional supervision, behavioral supervision, functional supervision, penetrating supervision, and continuous supervision, eliminating regulatory gaps and blind spots, cracking down on illegal financial activities, and timely handling of risks for small and medium-sized financial institutions.

Establish a long-term mechanism for preventing and resolving local debt risks, and establish a government debt management mechanism that is compatible with high-quality development.

We will improve the regulatory system and financial supervision of real estate enterprises, improve macro prudential management of real estate finance, and meet the reasonable financing needs of real estate enterprises of different ownership systems without discrimination. We will use policy toolboxes to better support the demand for rigid and improved housing, accelerate the construction of "three major projects" such as affordable housing, and build a new model for real estate development.

Maintain the stable operation of the financial market, regulate the issuance and trading behavior of the financial market, reasonably guide expectations, and prevent risk transmission resonance across regions, markets, and borders. Strengthen the management of the foreign exchange market and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

Improve the financial regulatory mechanism, effectively prevent and resolve financial risks in key areas, focus on doing a good job in the current key work in the financial field, maintain reasonable and sufficient liquidity, continuously reduce financing costs, activate the capital market, better support the expansion of domestic demand, promote stable foreign trade and foreign investment, and accelerate the cultivation of new driving forces and advantages.

Guiding the direction of financial development with Chinese characteristics

Previously, the National Financial Work Conference had been held five times in 1997, 2002, 2007, 2012, and 2017. The reform battles before and after the five conferences outlined the huge transformation path that China's financial industry has taken with the deepening of reform and opening up to the outside world.

Based on the political and economic environment at that time, various national financial work conferences have made significant reforms and deployments in China's financial supervision, financial institutions, financial markets, financial security, and financial risk areas. They have also evaluated and set the tone for China's next major financial reform direction and regulatory policies.

The Central Financial Work Conference has entered the public eye for the first time

This meeting marks the first time that the Central Financial Work Conference has entered the public eye.

From the "National Financial Work Conference" to the "Central Financial Work Conference", it is inseparable from the establishment of the Central Financial Commission (referred to as the "Central Financial Commission") and the Central Financial Work Committee (referred to as the "Central Financial Work Commission").

According to the Party and State institutional reform plan in March this year, the Central Financial Commission was established. Strengthen the centralized and unified leadership of the Party Central Committee on financial work, be responsible for top-level design, overall coordination, overall promotion, and supervision of financial stability and development, research and review major policies and issues in the financial field, and serve as the decision-making and coordination body of the Party Central Committee. Establish the Office of the Central Financial Commission as the administrative body of the Central Financial Commission and include it in the Party Central Committee's institutional sequence.

The Central Financial Work Conference is the highest standard conference in China's financial field. It not only summarizes and evaluates the financial work situation over the past five years, but also clarifies the guiding principles for doing well in financial work in the new era, determining the development pattern of China's financial and capital markets in the coming years.

Original link: http://www.pbc.gov.cn/rmyh/105232/5118543/index.html