First Financial Journalist learned from the forum that promoting the opening up and reform of financial markets and supporting Shanghai to speed up the construction of international financial centres will be the next focus of financial work. At the meeting, the signals of further accelerating reform and opening up were also released intensively.
Liu He, Vice Premier of the State Council, Li Qiang, Secretary of the Shanghai Municipal Committee, Yi Huiman, Chairman of the Securities Regulatory Commission, and Ying Yong, Mayor of Shanghai, jointly set the stage for scientific innovation. Photography/Chen Zhengbao
The construction of KSG is steady and far-reaching, but there are still many doubts about KSG in the market. For example, how to pilot the registration system after the introduction of Kechuang board? What is the direction of regulation? What changes should investors pay attention to? What difficulties and challenges do Kechuangban still have? For these hot issues, participants in the forum have made detailed explanations from different perspectives.
Setting up a system of scientific creation and pilot registration is an important breakthrough in deepening the reform of capital market in an all-round way, and it mainly undertakes two important missions. At the forum, Yi Huiman said that first, he supported the development and growth of science and technology enterprises with high development potential and market recognition; second, he played the role of reform pilot fields.
Liu He pointed out that the most important thing in the construction of science and technology innovation board is to focus on two tasks. First, to implement the registration system reform with information disclosure as the core. The essence of registration system is to give the right of choice to the market. Second, to improve the rule of law, increase the cost of illegal activities and strengthen the supervision and enforcement of law. We should have transparent, strict and predictable legal and institutional conditions, and comprehensively raise the cost of violation of the law.
Scientific innovation board can lead the institutional reform of the whole capital market and achieve institutional breakthroughs, especially the registration system reform can be implemented. We will substantially increase the proportion of corporate financing and further reduce risks. Liu Shengjun, president of Guoshi Institute of Financial Reform, told reporters.
In addition to institutional reform, the other significance of Kechuangbao lies in the strict supervision of capital market.
Previously, there were many disorders in the capital market, such as false disclosure of institutional information, artificial manipulation of asset quality classification. Some major shareholders regard financial institutions as ATMs, and some executives act wilfully. Guo Shuqing pointed out in the forum that there are many reasons for this, but not strict market restraint and supervision and law enforcement are also important reasons. Regulators must dare to fight, strictly enforce the law, and resolutely safeguard the dignity of laws and regulations.
Scientific Creative Board must give the right of choice to the market. Only by transferring the subjective judgment to the market can the market play a decisive role. This is also the core of the reform of registration system. Liu Shengjun told First Financial Journalist.
In addition, Liu Shengjun said that strict supervision fundamentally depends on the level of the legal system. If the violation of the regulations of listed companies can not be really punished, it will also encourage the outbreak of short-term financial fraud and other risk problems.
It is a brand-new exploration to set up a scientific innovation board and pilot registration system. Yi Huiman said. In the process of exploration, we may encounter various difficulties and challenges. When it comes to the new risks investors may face, Yi will be satisfied with focusing on five new changes.
Specifically speaking, one is how to balance the relationship between registration system and the quality of listed companies after the change of issuance mode; the other is that after market pricing, there are essential differences with the existing IPO pricing mechanism, and the phenomenon of high-value issuance of enterprises may increase; the third is the imbalance between supply and demand in the initial market, coupled with the need for new trading mechanism to adapt, not excluding the emergence of short-term speculation, rise and fall. Fourthly, because of the characteristics of fast technology iteration, long investment cycle and great uncertainty, the science and technology start-up enterprises themselves need investors to make rational judgments and pay more attention to information disclosure. Fifthly, at the beginning of the pilot project, the system innovation of science and technology start-up board needs to be further tested in practice, and there is a gradual running-in process, which may also lead to some market risks.
Discussions on financial openness have tended to focus on market access, but this year, more and more attention has been paid to the segmentation of financial sectors, and in the near future, the pace of opening up has been accelerated. For example, capital account liberalization will focus on promoting the liberalization of a few non-convertible projects.
On the issue of opening up to the outside world, Yi Huiman said that although the external uncertainty faced by Chinas capital market has increased in recent years due to various factors, we have the strong leadership of the Party Central Committee and the State Council, the unified command and coordination of the Finance Committee of the State Council, full confidence, ability and sufficient tool reserves to meet the challenges of various complex situations.
Yi Huiman said that in the near future, the SFC will launch a series of practical measures to open up to the outside world, including nine specific measures to promote the revision of QFII and RQFII rules, further facilitate the participation of foreign institutional investors in Chinas capital market, and further promote the opening up of capital market.
Capital account liberalization is an important part of open economy, and is closely related to the two-way opening of financial market. At the forum, Pan Gongsheng said that he would continue to speed up the interconnection and two-way opening of financial markets, and that a series of reform measures would be based on strengthening market communication and taking the opportunity to try first in Shanghai.
Specifically, one is to support the healthy development of scientific innovation board; the other is to promote the reform of QFII and RQFII, expand the scope of investment, moderately relax or even cancel QFII quota management, and normalize QDLP pilot projects in Shanghai; the third is to build an open and competitive foreign exchange market, expand market players, enrich trading products and optimize foreign exchange risk hedging methods; and the fourth is to cooperate with local and foreign currency cross-border funds. We should improve the macro-prudential management of the integration of domestic and foreign currencies, establish a pilot account system of the integration of domestic and foreign currencies, and unify the management policy of cross-border capital pools of domestic and foreign currencies.
In 2002, China began to implement QFII system, and has raised QFII quota five times. In January this year, QFII increased from $150 billion to $300 billion to meet the increasing investment demand of foreign investors in Chinas capital market.
It is worth noting that the expression of research on moderately relaxing or even abolishing QFII quota management reflects the determination to further improve the participant structure of capital market and to help finance open to the outside world.
However, he believes that in the context of uncertain world economy, attention should also be paid to the impact of short-term capital flows. If the capital account restrictions are released prematurely without conditions, there will be certain risks. China should be highly vigilant about capital outflow.
More open finance does not mean that there is no regulation. The high volatility and rapid spillover of risks in international financial markets have become a prominent feature of todays global financial markets.
Yi Huiman said that no matter how the external environment changes, the SFC will firmly promote the opening of the capital market in accordance with the general requirements of marketization, legalization and internationalization.
Chinas Economic Resilience Enhanced
Since May, the uncertainty of Global trade frictions has increased, and the RMB market exchange rate has been affected by the change of risk preference in the international market. Despite the severe external environment, many participants expressed confidence in Chinas macroeconomic resilience.
As Liu He said in his speech, The situation is improving in an all-round way and the overall situation has stabilized. Liu He said that Chinas macroeconomic space is large, structural deleveraging, adequate reserves of policy tools and full confidence to meet the challenges. We do have some external pressures, but this is precisely the consideration of Chinas economic transformation and upgrading.
For example, private enterprises continue to lead the growth of foreign trade. Statistics show that in the first five months of this year, Chinas private enterprisesforeign trade imports and exports increased by 5.02 trillion yuan, 11.1% year-on-year. The growth rate is higher than the overall growth rate of 7 percentage points, accounting for 41.4% of Chinas total foreign trade value, and the proportion increased by 2.6 percentage points compared with the same period last year. In addition, data from the State Administration of Foreign Exchange also show that Chinas foreign exchange reserves at the end of May amounted to $3101 billion, an increase of $6.1 billion over April, and a new high since September last year.
Pan Gongsheng said that market participants have a deeper understanding of the resilience of Chinas economy, the governments macro-control ability, the RMB exchange rate formation mechanism, Chinese enterprises and residentsbehavior in the foreign exchange market is more rational and orderly, and the situation of supply and demand in the foreign exchange market and cross-border capital flow is relatively stable.
We have also accumulated rich experience and sufficient policy tools in dealing with the fluctuations in the foreign exchange market. We have the foundation, confidence and ability to maintain the stable operation of the foreign exchange market and the basic stability of the RMB exchange rate at a reasonable and balanced level. Pan Gongsheng stressed.
Liu He said that in the next stage, financial work will mainly focus on five aspects: first, return to the source, firmly serve the real economy and improve the adaptability of financial supply; second, make a good fight against financial risks and pay attention to the strength and rhythm of risk disposal; third, implement financial control, strengthen monetary policy, macro-prudential policy and micro-prudential coordination; Fourthly, we should strengthen the construction of financial infrastructure, make overall plans and strengthen information sharing. Fifthly, we should further accelerate reform and opening up, accelerate market access, equal competition, and protect property rights and intellectual property rights.
Source: First Financial Responsibility Editor: Guo Chenqi_NBJ9931