Guo Shuqing: we must firmly promote the structural reform of the financial supply side

category:Finance
 Guo Shuqing: we must firmly promote the structural reform of the financial supply side


The nature of socialism with Chinese characteristics determines that our finance must face hundreds of millions of people. In capitalist society, finance is an important cause of polarization. In some countries under the epidemic situation, the poorer and the richer are getting richer, which is largely due to the serious deviation of their financial markets from the real economy. For example, the stock markets of some countries are in high spirits. Since this year, the market value growth of five large enterprises has accounted for more than 80% of the total market increase. Here, we should adhere to the new concept of development and give full play to the role of Finance in adjusting industrial structure, improving income distribution and enhancing social welfare.

We must firmly promote the structural reform of the financial supply side. We should not only develop large and super large financial enterprises, but also cultivate small and medium-sized financial institutions. There should be not only one-stop organization for comprehensive operation, but also specialized organization with characteristics. Different types of financial entities adhere to the positioning, learn from each other to build a prosperous financial forest. All financial institutions should pay close attention to digital transformation. Only in this way can we effectively improve our ability to serve the public.

We should further strengthen and improve supervision and guide financial resources to the weak areas of economic and social development. Adhere to customer-oriented, strive to achieve the career vision of employees, take root in urban and rural communities, and actively fulfill social responsibility. We should improve the availability of financial services, and reduce the service cost through enabling technology, so that the broad masses of people can have equal access to financial resources and enjoy high-quality financial services. To achieve these goals is in line with the need to create more value for equity investors.

Financial institutions should give full play to their professional advantages, do a good job in wealth management, increase residents property income, and realize the long-term maintenance and appreciation of peoples wealth. We should prevent risk spillover, maintain financial market stability, and improve social welfare. We should also take the initiative to play an exemplary role in disaster prevention and relief, green development and climate change.

2u3001 Strive to promote the healthy development of the third pillar endowment insurance

China has initially established the three pillars of pension security, including basic pension, enterprise (occupational) pension and individual business pension. The first pillar has covered nearly 1 billion urban and rural residents, but the second pillar is very small, and the third pillar is still in its infancy for a long time. Compared with many countries, the development of the third pillar is relatively slow, the proportion is too low, and the support for the elderly is obviously insufficient. With the accelerated arrival of Chinas aging population, the development of the third pillar has become very urgent. The financial industry can and should play an important role.

Giving full play to the financial advantages and vigorously developing the third pillar of pension security can effectively relieve the pressure of pension insurance expenditure and meet the diversified needs of the people. At the same time, it can also concentrate long-term stable funds, explore cross cycle investment mode, and become an important force of long-term investment and value investment in the capital market, fundamentally promote the healthy development of the capital market and meet the capital needs of infrastructure construction and scientific and technological innovation. At present, the total financial assets of Chinese residents have reached 160 trillion yuan, of which more than 90 trillion yuan are bank deposits, and most of them are less than one year. Financial assets that can be converted into financial resources for life-long pension are very large in scale and have obvious advantages.

In recent years, we, together with relevant ministries and financial enterprises, conducted extensive research on the reform and development of pension finance, and formed the next working idea. The Central Committee of the party and the State Council attach great importance to it. The financial commission of the State Council has made special arrangements, which require that it be active and stable, step by step, and gradually improve. The general policy is to walk on two legs. On the one hand, we should pay attention to the existing business norms, that is, to rectify the source, unify the standards of pension financial products, and clean up products that do not match the name. On the other hand, we should carry out business innovation pilot projects and vigorously develop professional pension products with real pension functions, including pension savings deposits, pension financing and funds, exclusive pension insurance, commercial pension, and so on. We will choose financial institutions and specialized institutions with better conditions to participate first, adhere to the reality of our country, learn from the positive and negative experience of the world, and explore a new way of reform and development of pension finance.

3u3001 Unswervingly promote the opening up of financial service industry

Opening up and cooperation is the only way to achieve financial prosperity and development. It is impossible to cultivate truly competitive financial institutions and financial markets in a closed environment. An important experience of reform and opening up over the past 40 years is to promote reform and development through opening up. General secretary Xi Jinping delivered an important speech at the 40th anniversary celebration conference of the establishment of the Shenzhen Special Economic Zone, pointing out that the new development pattern is not a closed domestic cycle, but an open domestic and international double cycle. Chinas financial system is also in the open conditions, through wind and rain, to see the world, strong muscles and bones, to achieve todays historic achievements. China has established and developed the worlds largest credit market, the second largest stock market, bond market and insurance market. Large state-owned commercial banks have reached or even surpassed the worlds advanced level in terms of labor productivity, management cost, Inclusive Finance and digital operation. The growth rate, development potential and market valuation of large insurance companies are also in the forefront of the world.

Since the 19th National Congress of the Communist Party of China, under the leadership of the CPC Central Committee and under the direct command of the financial commission of the State Council, the financial sector has successively launched more than 50 opening measures, greatly relaxed the restrictions on the ratio of foreign shares in the financial industry, expanded the scope of business, and broadened the scope of cooperation between Chinese and foreign financial markets. At present, these policies have been gradually implemented and effective, and a number of demonstration examples have been formed. The first wholly foreign-owned insurance holding company, wholly foreign-owned life insurance company and foreign-owned financial management company were successively approved to establish. Even in novel coronavirus pneumonia, the pace of financial opening has not stopped for a while.

Chinas application of financial science and technology has been in the forefront of the world in many aspects. Mobile payment, electronic clearing, online banking and digital credit are developing rapidly. At present, the off the counter trading rate of the banking industry is close to 90%. In the past, loans for small and micro enterprises used to be approved within 20-30 days. Now, the technology platform has realized the second application, second loan and instant availability. Some Internet technology companies are also actively exploring the development of financial business, and have made remarkable achievements.

We will continue to support the development of financial technology, optimize customer service experience and improve service efficiency. Pay close attention to and evaluate the impact of the scientific and technological revolution on the financial industry, and make forward-looking deployment arrangements. In terms of supervision, it is also necessary to increase the use of science and technology to improve the efficiency of supervision. Of course, the development of financial technology has also brought some new problems. We must attach great importance to network security, data privacy, oligopoly and other risk challenges to ensure market fairness and financial stability.

As the capital, Beijing has a special status. The financial industry must spare no effort to support the function construction of Beijings four centers and create a comprehensive demonstration area for the national service industry to expand its opening up. Support Beijing to speed up the construction of pilot free trade zone. Support Beijing to build a high-level open platform for coordinated development of Beijing, Tianjin and Hebei.

Thats all I have to say. Thank you!