Financial Street Forum, Pan Gongsheng, Li Yunze, and Yi Huiman spoke out!

The 2023 Financial Street Forum Annual Meeting opened this morning on Beijing Financial Street. The theme of this year's Forum Annual Meeting is "Better China, Better World - Strengthening Financial Opening and Cooperation, Promoting Economic Sharing and Win-win Cooperation".

This year's Financial Street Forum invited over 400 heavyweight guests from over 30 countries and regions around the world to attend. Communicate around the current hot topics of economy and finance, jointly explore how to promote various countries to share and deepen international cooperation opportunities, and jointly overcome the challenges faced by global economic development.

At the meeting, Central Bank Governor Pan Gongsheng, Director of the State Administration of Financial Regulation Li Yunze, and Chairman of the China Securities Regulatory Commission Yi Huiman delivered important speeches.

Supporting Stable Growth of the Real Economy and Effectively Maintaining Financial Stability - Pan Gongsheng, President of the People's Bank of China and Director of the State Administration of Foreign Exchange, Talks on Hot Issues in Economic and Financial Affairs

How to increase the countercyclical adjustment of monetary policy in the current situation? How to effectively respond to financial risks? How to accelerate the construction of a modern financial system with Chinese characteristics? At the 2023 Financial Street Forum Annual Meeting held on the 8th, Pan Gongsheng, President of the People's Bank of China and Director of the State Administration of Foreign Exchange, responded to the hot economic and financial issues that the market is concerned about.

Maintain the stability of monetary policy

At present, the total amount of monetary credit has maintained a reasonable growth, the credit structure has been continuously optimized, and the interest rate of corporate loans is at a relatively low level, providing strong and effective support for economic recovery and development. Pan Gongsheng said that since the beginning of this year, monetary policy has increased countercyclical adjustment, coordinated the use of total and structural, quantity and price tools, and effectively supported the development of the real economy.

Since the beginning of this year, the People's Bank of China has lowered the reserve requirement ratio twice, releasing over 1 trillion yuan of medium to long-term funds; Reducing policy interest rates twice, driving market interest rates to continue to decline; We will increase the amount of loans and rediscounts for agriculture and small businesses twice, and extend the implementation of six structural monetary policy tools, including inclusive small and micro loan support tools.

Pan Gongsheng introduced that currently, the loan balance of China's banking system exceeds 200 trillion yuan, and the balance of social financing scale exceeds 300 trillion yuan. Revitalizing existing loans, improving the efficiency of using existing loans, and optimizing the investment direction of new loans are equally important for supporting economic growth.

In the next stage, monetary policy will pay more attention to cross cycle and countercyclical regulation, "Pan Gongsheng said, actively activating financial resources that have been inefficiently occupied and improving the efficiency of fund utilization in accordance with the requirements of the Central Financial Work Conference. At the same time, we will make good use of support tools for agriculture, small and medium-sized re loans, rediscount, and inclusive small and medium-sized loans, continue to implement carbon emission reduction support tools, support special re loans for enterprise technological progress, and inclusive elderly care special re loans. We will support the healthy development of fields such as technological innovation, private small and medium-sized enterprises, advanced manufacturing, green development, and inclusive elderly care, and do a good job in the "five major articles".

Preventing and resolving financial risks in key areas

At present, China's financial system is generally stable, financial risks are controllable, financial institutions are generally healthy, and the financial market is operating smoothly. "Pan Gongsheng made this judgment.

In his view, the proportion of high-risk financial institutions in China's financial system, both in terms of quantity and asset size, is very small. After the reform of insurance in recent years, the number of high-risk small and medium-sized banks in China has decreased by half compared to the peak. A few provinces with relatively concentrated high-risk institutions are developing and implementing plans to reform small and medium-sized banks into insurance, further reducing the number and risk level of high-risk institutions.

Regarding real estate financial risks, Pan Gongsheng believes that currently, real estate related loans account for 23% of bank loan balances, of which about 80% are personal housing loans. China has always implemented a very cautious personal housing loan policy, and the spillover impact of the real estate market adjustment on the financial system is generally controllable.

In recent years, the financial sector has taken comprehensive measures from both supply and demand sides to improve the industry's financing and operational cash flow, optimize and adjust real estate financial policies, introduce the "16 Finance Articles" for real estate, establish special loans for guaranteed delivery, adjust down payment ratios, mortgage loan interest rates, and other macro prudential financial policies.

With the recovery of the economy, the effectiveness of real estate policies, and the self repair of the market, overall transactions in the real estate market have improved since August. "Pan Gongsheng said that the People's Bank of China will guide financial institutions to maintain the stability of key financing channels such as real estate credit and bonds, and meet the reasonable financing needs of real estate enterprises of different ownership equally. Provide medium to long-term low-cost financial support for the construction of the "three major projects" such as affordable housing, improve the financial policy system for housing leasing, and promote the construction of a new model for real estate development.

When it comes to the risk of local government debt, Pan Gongsheng believes that the debt level of China's government is in the middle and lower reaches of the international level, and the central government has a relatively light debt burden. Most local government debt is mainly concentrated in provinces with larger economies and faster economic growth, and has the ability to self resolve debt.

He introduced that since the beginning of this year, the financial department has taken multiple measures together with relevant departments to actively support local governments in prudently resolving debt risks. Guide financial institutions to negotiate equally with financing platforms in accordance with the principles of marketization and rule of law, and implement classified measures to resolve the risks of existing debts, strictly control incremental debts, and establish a normalized financial debt monitoring mechanism for financing platforms through methods such as extension, borrowing to repay old debts, and replacement.

When necessary, the People's Bank of China will provide emergency liquidity loan support to areas with relatively heavy debt burdens. "Pan Gongsheng introduced that the financial department also supports local governments to gradually divest the government financing function of financing platforms through mergers and acquisitions, asset injection, and other methods, transforming into market-oriented enterprises that do not rely on government credit and are financially independent and sustainable.

Accelerate the construction of a modern financial system with Chinese characteristics

In deepening the structural reform of the financial supply side, Pan Gongsheng proposed to accelerate the construction of a modern financial system with Chinese characteristics. Accelerate the construction of a modern central banking system, and improve the "dual pillar" regulatory framework for monetary policy and macro prudential policy. Deepen the market-oriented reform of interest rates and exchange rates, and improve the mechanism for the formation, regulation, and transmission of market-oriented interest rates.

Pan Gongsheng stated that he will promote a more reasonable scale, structure, and regional layout of the financial institution system. Strengthen the construction of the bond market system, improve a modern payment system that covers a wide range of areas, is efficient and safe, and improve a credit reporting system that covers the entire society.

In addition, in promoting high-level two-way opening up of the financial industry, Pan Gongsheng stated that it is necessary to steadily and prudently promote the internationalization of the RMB, deepen the reform and opening up of the foreign exchange field, steadily expand the institutional opening up of the financial market, and promote trade and investment and financing facilitation. Do a good job in the financial work groups of China, the United States, and China Europe, pragmatically promote international financial cooperation, and actively participate in international economic and financial governance.

Li Yunze, State Administration of Financial Regulation: The pace of China's financial opening up in the future will not stop growing

The pace of China's financial openness in the future will not stop, and the determination to share development opportunities with the world will not change.

”Li Yunze, Director of the State Administration of Financial Supervision and Administration, stated on the 8th. Li Yunze stated at the opening ceremony of the 2023 Financial Street Forum that financial openness is an important driving force for the reform and development of China's financial industry. He will accelerate the improvement of the pre admission national treatment and negative list management model, further relax market access requirements for foreign institutions, continue to enhance the transparency, stability, and predictability of financial systems and policies, and strive to create an institutional environment of prudent operation and fair competition.

He introduced that in recent years, China has further introduced more than 50 opening-up measures, completely lifted restrictions on foreign shareholding in the banking and insurance fields, significantly reduced the quantitative threshold for foreign investment access, and continued to expand the breadth and depth of financial openness. At present, 30 global systemically important banks have branches in China, and nearly half of the 40 largest insurance companies in the world have entered the Chinese market.

Li Yunze stated that China's economy has good fundamentals, ample potential, and ample room for maneuver, laying a solid foundation for the sustained and healthy development of the financial industry. The Central Financial Work Conference proposed the grand goal of accelerating the construction of a strong financial country, ushering in significant development opportunities for China's financial industry. The development momentum of the banking industry is stable, the development potential of the insurance industry is enormous, and the development prospects of the asset management industry are broad.

It is reported that in the past three years, the average annual growth rate of credit scale in the banking industry has been 11.2%, which is about 5 percentage points higher than the average level in developed countries; The average annual growth rate of premium income is 4 percentage points higher than the global average. At present, China has become the world's second largest asset and wealth management market, with over 100 million individual investors in bank wealth management products, a three fold increase from the end of 2019.

Li Yunze stated that the long-term fundamentals of China's economy will not change in the future, and the momentum of stable development in the banking industry will not change. The per capita premium in China is only 70% of the global average, and there is still a lot of room for improvement. There is huge potential for health insurance, family property insurance, and catastrophe insurance. With the continuous improvement of residents' income, the concept of long-term investment, value investment, and diversified investment deeply rooted in people's hearts, and the steady promotion of the net worth transformation of asset management products, China's asset and wealth management industry will enter a "golden period" of development.

Chairman of the China Securities Regulatory Commission, Yi Huiman: Strengthening supervision and preventing risks are important guarantees for achieving high-quality development

Preventing risks is the main goal of strengthening supervision, and strengthening supervision is an effective way to prevent risks. Both are important guarantees for achieving high-quality development. "Yi Huiman, Chairman of the China Securities Regulatory Commission, stated on the 8th that the next step will be to comprehensively strengthen institutional supervision, behavioral supervision, functional supervision, penetrating supervision, and continuous supervision. Adhere to the fundamental purpose of serving the real economy and better leverage the hub function of the capital market.

Yi Huiman made the above statement at the opening ceremony of the 2023 Financial Street Forum Annual Meeting. Strengthening capital market regulation, maintaining the 'three public' order of the market and the legitimate rights and interests of investors, and preventing and resolving financial risks are the primary and statutory responsibilities of the China Securities Regulatory Commission, "he said.

Yi Huiman said: In recent years, we have adhered to the regulatory philosophy of 'respecting the market, the rule of law, professionalism, and risk, and leveraging the joint efforts of all parties'. We have adhered to the main responsibility of regulation and focused on grasping the following principles: firstly, we must adhere to the principle of' being able to manage clearly ', and promote innovation under the premise of prudent supervision. Secondly, we must strictly prevent excessive leverage and gradually reduce the scale and level of leveraged funds to a reasonable range. Thirdly, we must' zero tolerance 'to combat various types of chaos Like, reversing the long-standing situation where the cost of securities violations has been too low. The fourth is to adhere to the principle of turning the blade inward and self revolution, and continuously strengthen the construction of party conduct, integrity, and anti-corruption work in the China Securities Regulatory Commission system

For the next focus of work, he stated that he will comprehensively strengthen institutional supervision, behavioral supervision, functional supervision, penetrating supervision, and continuous supervision, continuously improve regulatory adaptability and pertinence, firmly adhere to the risk bottom line, maintain the stable operation of the capital market, boost investor confidence, and take the path of developing a modern capital market with Chinese characteristics.

The healthy development of the real economy is the foundation for the smooth operation of the capital market. Currently, China's economy is consolidating its upward trend and further unleashing its development potential. We are full of confidence in this

Yi Huiman said, "We will adhere to the fundamental purpose of serving the real economy, focus on the five major articles of science and technology finance, green finance, inclusive finance, pension finance, and digital finance, better play the role of capital market hub, and more effectively serve the overall situation of Chinese path to modernization".

How to strengthen supervision and prevent risks? The China Securities Regulatory Commission will focus on addressing the root cause of severe cases, opening up reform paths, enhancing capabilities, and leveraging joint efforts.

In terms of highlighting the root cause of severe cases, Yi Huiman stated that the China Securities Regulatory Commission will strengthen cooperation with the public security and judicial organs, continue to improve the mechanism for preventing and combating counterfeiting in the capital market, promote the improvement of the administrative, civil, and criminal three-dimensional accountability system, increase the heavy blow against illegal activities such as financial fraud, fraudulent issuance, and market manipulation, and severely punish intermediary institutions that fail to fulfill their duties and will not tolerate them. At the same time, we will also highlight the reform path. The reform of the registration system is not about relaxing regulation, but about achieving a better combination of an effective market and a promising government

Yi Huiman said, "We will adhere to the basic structure of the registration system and adapt to new situations and changes, promote the deepening and implementation of the stock issuance registration system, dynamically evaluate and optimize pricing, reduction, and refinancing system arrangements. At the same time, we will vigorously promote investment side reform, and promote the implementation of various supporting policies for the entry of medium and long-term funds into the market.

Regarding "highlighting the improvement of capabilities" and "highlighting the utilization of joint efforts", Yi Huiman stated that he will strengthen the tracking and analysis of quantitative high-frequency transactions and improve regulatory measures. Strengthen regulatory technology construction, strengthen cross departmental information sharing, strengthen comprehensive monitoring of market capital leverage level and corporate debt risk, and strive to achieve early identification, warning, exposure, and disposal of various illegal behaviors and risks; Strengthen inter ministerial linkage and central local collaboration, legally include all types of securities activities in regulation, strictly control the entry of private equity funds and other fields, crack down on "fake private equity", clean up and rectify the gold exchange and "fake gold exchange", and eliminate regulatory gaps and blind spots.