Industry News | The Office of the Central Financial Commission and the Central Financial Work Commission: Unswervingly follow the path of financial development with Chinese characteristics

The Office of the Central Financial Commission and the Central Financial Work Committee published an article titled "Unswervingly Following the Path of Financial Development with Chinese Characteristics" in Qiushi. The full text is as follows:

Firmly follow the path of financial development with Chinese characteristics

Central Financial Work Committee of the Office of the Central Financial Commission

The inheritance and innovation of financial theory in Marxist political economy. Marx and Engels constructed financial theories based on important theories such as labor value theory and surplus value theory, including currency, credit, banking, capital, etc., profoundly revealing the essence, operating rules, and development characteristics of finance. In the process of combining the basic principles of Marxist political economy with China's specific realities, our party continuously deepens its understanding of the essence and development laws of finance.

The absorption and promotion of excellent traditional Chinese culture. China has formed a rich and excellent financial ideology and cultural tradition since ancient times. Honesty, trustworthiness, and the combination of righteousness and benefit are important manifestations of the moral and business values accumulated by the Chinese nation in long-term social activities. The concepts of "the road to agricultural and commercial transactions is smooth, and the currency of turtle shells, money, knives, and cloth is thriving" and "trust is the treasure of the country and the shelter of the people" are highly compatible with modern financial governance.

The real economy is the foundation of finance, and finance is the bloodline of the real economy. In recent years, Yuyao City in Zhejiang Province has continuously strengthened its advantageous industrial clusters and promoted the development of manufacturing towards high-end, intelligent, and green industries through policies such as increasing support for science and technology finance and promoting the construction of innovation platforms. On April 11, 2023, an intelligent robot was operating in the welding and assembly workshop of a car company's Yuyao factory. Xinhua News Agency reporter Weng Xinyang/Photo

Drawing on and surpassing the experience and achievements of global financial development. In the development process of Western countries, the financial revolution characterized by modern commercial banks, modern capital markets, modern investment banks, and venture capital systems has driven three industrial revolutions of humanity, providing financial support for modernization in Western countries. However, at the same time, under the capitalist ideology and social system, financial capital has exposed obvious monopolies, plundering, and fragility, not only causing a huge wealth gap, but also repeatedly triggering economic and financial crises.

The precious ideological crystallization formed by our party's unremitting exploration of the path of financial development with Chinese characteristics. Our party has long recognized the extreme importance of doing a good job in financial work, and in the long-term practice of leading China's revolution, construction, and reform, we continuously explore the path of financial development that is in line with China's actual situation.

2、 Deeply grasp the basic essence of the development path of Chinese characteristic finance

The path of financial development with Chinese characteristics is an unprecedented one, which not only follows the objective laws of modern financial development, but also has distinctive characteristics that are suitable for our own national conditions. Its basic essence is to adhere to the centralized and unified leadership of the Party Central Committee on financial work, adhere to the value orientation of putting the people at the center, adhere to the fundamental purpose of serving the real economy with financial services, adhere to risk prevention and control as the eternal theme of financial work, adhere to promoting financial innovation and development on the track of marketization and rule of law, deepen the structural reform of the financial supply side, adhere to the overall coordination of financial opening up and security, and adhere to the overall tone of seeking progress while maintaining stability. These "Eight Adherences" are aimed at managing the overall situation, direction, and fundamental aspects, clarifying how financial work should be viewed and carried out. They have both a worldview and methodology, forming a dialectical and unified organic whole that must be adhered to in the long term. We must fully, accurately, and comprehensively grasp the rich connotations and essential requirements of the development path of finance with Chinese characteristics from three levels: historical logic, theoretical logic, and practical logic.

Adhere to the centralized and unified leadership of the Party Central Committee over financial work. This is the most essential feature and fundamental requirement of the development of Chinese characteristic finance, and the greatest institutional advantage of China's financial development. To embark on the path of financial development with Chinese characteristics, we must unwaveringly adhere to the centralized and unified leadership of the Party Central Committee over financial work, adhere to and strengthen the Party's comprehensive leadership over financial work, and ensure that financial work moves forward along the correct path and direction.

Adhere to the value orientation of putting the people at the center. Wholeheartedly serving the people is the fundamental purpose of our Party. The financial industry led by the Party starts and prospers from the people, and is fundamentally the cause of the people. To embark on the path of financial development with Chinese characteristics, we must always take realizing the people's aspirations for a better life as the starting point and foothold of all financial work, pay more attention to the inclusiveness of financial development, and enable the general public to share the fruits of financial development. This is a significant difference between the path of financial development with Chinese characteristics and that of Western finance, and it fully reflects the people-oriented nature of financial work.

Adhere to the fundamental purpose of providing financial services to the real economy. The real economy is the foundation of finance, and finance is the bloodline of the real economy. The two coexist and prosper together. Financial and economic activities; Financial stability and economic stability; Economic prosperity and financial prosperity; Strong economy and strong finance. Financial detachment from the real economy is like a water without a source and a tree without roots. Without strong support from the real economy, financial prosperity will only be superficial. To pursue the path of financial development with Chinese characteristics, we must adhere to our duty to serve the real economy, effectively improve our service concepts, capabilities, and quality and efficiency, and achieve high-quality development of finance while supporting the real economy to become stronger and better. We will promote high-quality economic and social development through the high-quality development of the financial industry.

Persist in making risk prevention and control the eternal theme of financial work. To embark on the path of financial development with Chinese characteristics, it is necessary to attach great importance to the contagiousness, concealment, and destructive nature of financial risks, enhance awareness of potential risks, establish bottom line and extreme thinking, and carry out risk prevention and control work with a sense of responsibility that is always at ease, firmly guarding the bottom line of preventing systemic financial risks.

Adhere to promoting financial innovation and development on the track of marketization and rule of law. The vitality of finance lies in the market, and the order of finance lies in the rule of law. Finance is an innovative and active industry, and it is necessary to deeply grasp the laws of financial development, achieve clear innovation directions, and highlight support priorities. Unrealistic and false innovation will only lead to huge risks and losses. Financial innovation and development must fully leverage the decisive role of the market in allocating resources, better leverage the role of the government, enhance the driving force of financial development, stimulate the vitality of financial development, accelerate the improvement of financial rule of law, adhere to integrity and innovation, and ensure that financial innovation and development move forward in the right direction.

Persist in deepening the structural reform of the financial supply side. To embark on the path of financial development with Chinese characteristics, we must adhere to goal orientation and problem orientation, enhance systemic awareness, grasp the relationship between short-term and long-term, overall and local, continuously deepen the structural reform of the financial supply side, and accelerate the construction of a modern financial system with Chinese characteristics.

Persist in coordinating financial openness and security. Currently, the world is experiencing unprecedented changes and accelerating, with external instability, uncertainty, and unpredictability becoming the norm. The world is entering a new period of turbulence and transformation. The road of financial development with Chinese characteristics is an open road. On the premise of maintaining the safety bottom line, we should steadily expand the institutional opening in the financial field, improve the level of cross-border investment and financing facilitation, increase financial support for the joint construction of the "the Belt and Road", steadily and prudently promote the internationalization of the RMB, better serve and accelerate the construction of a new open economic system with a higher level.

Adhere to the overall tone of seeking progress while maintaining stability. The overall tone of seeking progress while maintaining stability is an important principle of our party's governance and a methodology for doing a good job in economic work. To pursue the path of financial development with Chinese characteristics, it is necessary to grasp the relationship between stability and progress. Adhere to stability as the top priority, stability is the main tone, seek progress with stability, and consolidate stability with progress while maintaining overall stability. What should be stable should be stable, financial policies should be stable, financial supervision should be cautious, risk management should be stable, market expectations should be stable, and financial operations should be stable. But stability is not inaction. What needs to be improved is progress, with a focus on promoting development, adjusting structure, and addressing shortcomings, providing high-quality financial services for economic and social development. On the basis of stability, various reform and development tasks should be deployed and implemented in place.

3、 Implementing the decisions and deployments of the Party Central Committee in all fields, aspects, and links of financial work

At present, our Party is uniting and leading the people of all ethnic groups across the country, striving to build a strong socialist modernization country in an all-round way, achieve the second centennial goal, and comprehensively promote the great rejuvenation of the Chinese nation with Chinese path to modernization. The report of the 20th National Congress of the Communist Party of China pointed out that China has entered a period of strategic opportunities and risks, with an increase in uncertain and unpredictable factors. Various "black swan" and "gray rhinoceros" events may occur at any time.

We must adhere to and strengthen the comprehensive leadership of the Party. Whether the Party's leadership is well adhered to and the Party's construction is well carried out is related to the cohesion and combat effectiveness of the financial system, and determines the success or failure of the financial industry. To do a good job in the financial work of the new era and new journey, we must take a clear political stance, firmly defend the "two determinations" and resolutely uphold the "two safeguards" through practical actions, fully implement the major policies and decisions of the Party Central Committee on financial work, and effectively transform our political and institutional advantages into financial governance efficiency.

The fundamental goal must be to serve the construction of a strong country and the great cause of national rejuvenation. The rise and fall of a country is the responsibility of finance. Finance is the "national key" and plays an important role in the overall construction of Chinese path to modernization. We must firmly establish the correct business philosophy, performance philosophy, and risk philosophy, balance the relationship between functionality and profitability, and adhere to the principle that functionality comes first. In response to the strategic needs, stage characteristics, and structural characteristics of economic and social development, we will adjust and improve the key directions and methods of serving the real economy according to the situation, and focus on five major articles: technology finance, green finance, inclusive finance, pension finance, and digital finance. We will promote the true aggregation of financial resources in the strategic direction, key areas, and weak links of high-quality development, continuously meet the needs of economic and social development and people's financial services, and provide solid support for the construction of a strong country and the great cause of national rejuvenation with high-quality financial development.

We must deepen the structural reform of the financial supply side and accelerate the construction of a modern financial system with Chinese characteristics. To accelerate the construction of a strong financial country and enhance the driving force for high-quality financial development, it is necessary to make good use of the key move of reform and focus on building a modern financial system with Chinese characteristics. We should focus on the adjustment and optimization of the financial system structure, improve institutional positioning, strengthen market rules, improve corporate governance, and promote the deepening and implementation of financial supply side structural reform. Accelerate the formation of a scientifically sound financial regulatory system, a structurally reasonable financial market system, a division of labor and cooperation financial institution system, a complete and effective financial regulatory system, a diversified and professional financial product and service system, and an independent, controllable, and secure financial infrastructure system, comprehensively enhancing the adaptability, competitiveness, and inclusiveness of the financial supply system.

We must comprehensively strengthen financial supervision. Strengthening financial supervision comprehensively is one of the main tasks of financial work in the current and future periods. We need to improve the financial regulatory system and mechanism, achieve full coverage of financial regulation, and resolutely manage not only legality but also illegality. We must also manage risks in industries, establish and improve a bottom line mechanism, and legally include all financial activities in regulation. Effectively solve the problem of loose and soft regulation, strive to achieve consistent, strict, and thorough supervision, and make financial regulation truly "thorny". Continuously strengthen institutional supervision, behavioral supervision, functional supervision, penetrating supervision, and continuous supervision, and continuously improve the professionalism, authority, and transparency of supervision. Consolidate regulatory responsibilities, strengthen coordination between central and local supervision, improve supervision and accountability mechanisms, increase regulatory accountability efforts, and strengthen the supervision of supervision.

It is necessary to effectively prevent and resolve financial risks. Preventing and resolving financial risks is not only a tough battle, but also a long-lasting one. To effectively grasp the relationship between rights and responsibilities, and establish a risk disposal responsibility mechanism that is consistent with rights and responsibilities and compatible with incentives and constraints; Grasp the relationship between speed and stability, establish and improve emergency response mechanisms, and solidly and prudently resolve risks on the premise of stabilizing the overall situation. Effectively and effectively strengthen risk control in key areas, industries, links, and positions, use powerful drugs to treat existing illnesses, focus on early and small measures to prevent illnesses, continuously improve the financial risk monitoring, identification, early warning, and disposal system and mechanism, strengthen risk source control, and resolutely maintain economic and financial security and social stability.