Shang Fulin: Chinas financial market will inevitably usher in a new situation of opening up

category:Finance
 Shang Fulin: Chinas financial market will inevitably usher in a new situation of opening up


Shang Fulin believes that since the 18th National Congress of the CPC, China has accelerated the transition from the opening of commodity factor liquidity to institutional opening such as rules. The rules of the financial opening system are speeding up and perfecting. Chinas financial market will inevitably usher in a new situation of institutional and systematic opening up, which will surely release more tremendous attraction to the world.

The following is the full text of the speech (not approved by the speaker):

Firstly, under the current international political, economic and financial situation, we should strengthen the determination and confidence of reform and opening up and expand the financial strategy of opening to the outside world. At the annual meeting of the Boao Forum for Asia in 2018, Xi Jinping stressed that Chinas economic development in the past 40 years has been achieved under open conditions. In the future, Chinas high-quality economic development must also be carried out under more open conditions. As the core of modern economy, finance needs to adhere to the basic strategy of opening to the outside world and enhance its core competitiveness and comprehensive service efficiency. To provide greater financial impetus for the high-quality development of the real economy.

On the one hand, financial opening-up is one of the important grasps of Chinas entry into modernization. In the past 40 years of reform and opening up, Chinas financial opening up not only provides an important reference for financial reform and development, but also provides a rare opportunity to introduce capital, talent and management. In the early stage of Chinas banking modernization reform, opening to the outside world promoted the domestic banking industry to develop trade finance, commodity financing, derivative trading and other special fields. This has promoted our business to develop in depth and breadth, which is from the banking sector.

Since the 18th National Congress of the Communist Party of China, the internationalization of RMB and the two-way opening of finance have made positive progress, and China has become one of the most important financial markets in the world. The renminbi has become the seventh largest cross-border and offshore payment currency in the world. The mechanism of Shanghai-Shenzhen-Hong Kong Stock Exchange has been continuously optimized, Huluntong has been officially launched, the international well-known index and the proportion of A shares have been included. At present, the total size of the banking industry has ranked the first in the world, and the premium income and the total market value of the securities market have steadily ranked the second in the world.

On the other hand, financial opening-up has provided favorable support for the sustained and healthy development of Chinas economy. Since the reform and opening up, with the opening of the financial door widening, foreign-funded financial institutions deal with overseas bond issuance, listing, mergers and acquisitions, financing and other business of Chinese-funded enterprises, making up for the shortcomings of the original financial services. Through the demonstration role of foreign financial institutions and catfish effect, it has contributed an important force to the exploration of financial service system in accordance with the basic law of the market and the national conditions of our country. With Chinas economy changing from high-speed to medium-high-speed growth, economic restructuring and upgrading, from factor investment driving to innovation driving, higher requirements have been put forward for opening up to the outside world. We must actively adapt to the changing situation and actively meet the needs of high-quality financial development.

In this regard, we should have an objective understanding of our countrys opening potential and give full play to our potential and attraction.

One is to fully estimate the resilience of Chinas financial market in dealing with global political and economic uncertainties. The outbreak of the international financial crisis in 2008 has had a far-reaching impact on world politics and economy. At one time, Europe was greatly impacted by the sovereign debt crisis, the world economy and trade slowed down in general, and some countries experienced a long process of contraction. This ripple effect is still emerging. At present, the unilateralism of individual countries has been strengthened, the economic and trade frictions provoked by the United States have intensified in the course of changes, and the uncertainty of the global economy and finance is increasing.

Under the current situation, Chinas financial market has shown a relatively strong resilience. After the 2008 financial crisis, some foreign financial institutions have chosen to sell some overseas assets, including China. Actively reducing the shares of Chinese-funded banks, this situation is not because their operations have changed in China, there are problems, but mainly to repair the parent banks capital balance sheet, which has been severely damaged by the financial crisis. At that time, a foreign bank withdrew from China in 2015. Later, we carefully analyzed its situation. Its business in China at that time was growing better than the previous year, and it was also the best in the whole Asia-Pacific region. It was the banks institution in China. Its withdrawal from China is mainly a strategic return to its home country.

At the same time, we also see that the proportion of foreign banksassets in all our commercial banks is still very low, not relatively low, but also very low. Foreign insurance companies account for less than 6% of the total financial system. Foreign capital accounts for 2% of A-share market and 29% of Chinas foreign exchange market. From this proportion, we can see that there is still a lot of room for opening up.

Since the Eighteenth National Congress of the Communist Party of China, China has accelerated the transformation from the opening of commodity elements to the opening of rules and other systems. The rules of financial opening system are speeding up. Chinas financial market will inevitably usher in a new situation of institutional and systematic opening up. It will surely unleash a greater attraction on the world.

Second, we should grasp the strategic layout in the context of global strategic change. We should give full play to the advantages of Asian investment bank, BRICs Development Bank and Silk Road Fund. We should also give full play to the advantages of foreign banks with our joint venture or joint venture in the global layout, cooperate with the one belt and one road and international capacity cooperation, and plan for the implementation of key cloth as early as possible. Bureau, this financial opening strategy of multi-point blossom.

Fourthly, we should adhere to the direction of promoting reform through opening up and development through reform. Expanding the opening of real economy and finance to the outside world will fundamentally improve the level of development of financial service quality and enhance the comprehensive competitiveness of our country. Our financial institutions laugh at the external shocks and turn them into the driving force of reform. We have always said, as President Zhou said just now, that in the early stage of opening up the financial industry, there were still some industries that were deemed to be underdeveloped. When opening up, there should be a sequence.

So now, the financial industry is a competitive industry, which needs to continuously improve efficiency and vitality through competition. This historical experience also tells us that financial openness should adhere to the principle of self-centeredness, put financial openness into the overall situation of the country, plan well, grasp the strength and rhythm, transform the competitiveness brought by foreign investment into the driving force of reform and development, and learn from the advanced management concepts and mature markets brought by foreign investment. Experience, speed up the management of scientific and technological business, products and processes, change the situation of large but not strong financial industry in China, and accelerate the transformation from homogeneity to specialization and specialization in business model. Promote corporate governance structure to further promote and achieve high-quality development.

On the other hand, we should constantly improve the effectiveness of the real economy of financial services. The most fundamental feature of the road of financial development with Chinese characteristics is to serve the real economy, putting the service of the real economy in the first place. In the process of continuously promoting financial opening to the outside world, the key is to always adhere to the origin, concentrate on the main business, constantly improve the ability of financial services to the real economy, meet the peoples increasing demand for financial services, and realize the positive interaction between financial self-development and economic and social development. We should improve the efficiency of financial markets by introducing specialized foreign investment institutions with expertise in risk control, credit rating, wealth management, professional factoring, consumer finance and pension insurance.

I have just pointed out these aspects, which are mentioned in the 11 articles of the Finance Commission. These are just our short legs in the development of our financial industry.

Then the introduction of these industries will have an impact on our own domestic industries. That is to improve their own response capacity, through the introduction of these foreign investment institutions, through the introduction of business in this area, to promote domestic financial institutions from the expansion of quantity and scale to high-quality development. Especially the Sino-US trade frictions show us that the impact itself has formed an inversion mechanism for the independent innovation of Chinese enterprises, which has accelerated the pace of innovation-oriented upgrading of Chinese enterprises to a certain extent. The financial industry must speed up independent innovation by means of opening to the outside world and provide better, cheaper and efficient matching financial services for the transformation and upgrading of enterprises.

Fifth, adhere to the financial opening to the outside world and constantly improve the level of financial supervision. Financial security is an important part of national security. Preventing and resolving financial risks, especially systemic risks, is the fundamental task of finance. Financial opening-up should not be abandoned. We should pay equal attention to risk prevention and match the ability of financial supervision with the degree of openness.

On the one hand, we should deepen our understanding of the nature and laws of Finance and firmly adhere to the financial bottom line.

Second, we should strictly abide by international rules and actively participate in the formulation of rules and standards. To expand the high-level two-way opening of finance, we need a fair, open and transparent market rules and a legalized business environment, follow the principles of national treatment and negative list before access, set high-level international rules, objectively reflect Chinas situation in the aspects of financial system stability assessment, anti-money laundering and anti-terrorism assessment, and strive for fairness. Encounter. At the same time, we should gradually shift from learning and adapting to international economic and trade rules to actively participating in global economic governance, leading the formulation of international rules and enhancing the voice and influence of the international financial governance system.

General Secretary Xi Jinping stressed that opening up brings progress and closure is bound to lag behind. Financial opening to the outside world is the general trend of Chinas economic and social development. Lets work together and move forward hand in hand, take a good road of Chinas financial opening to the outside world under the new situation, and promote our country from a big financial country to a strong financial country. Thank you!