Wu Xiaoqiu: disintermediation is the basic trend and Chinas finance should not be allowed to return to a single business financial system

category:Finance
 Wu Xiaoqiu: disintermediation is the basic trend and Chinas finance should not be allowed to return to a single business financial system


As a professor of finance, I cant avoid some hot issues at present, if I evade, its to evade responsibility, Wu said at the beginning of his speech. He stressed that we should judge some basic financial problems from the basic conscience. It is very important to respect common sense and financial laws and trends. If we deviate from common sense and the basic trend of financial development, it will seriously hinder Chinas financial reform and development, and will also seriously affect the realization of our grand goal of becoming a moderately developed country by 2035. .

He first analyzed the six major functions of finance. First, financing function. Second, risk allocation function. Third, wealth management function. Fourth, convenient and safe payment and settlement system. Fifth, incentive mechanism. Sixth, guide the rational flow of funds through information release.

He stressed the importance of risk allocation and planned high and new technology through financial resources to turn it into new industries and new products in the future. In the process of transformation, there are huge risks. Only when finance undertakes the risks, can new technologies and new technologies become new industries and new products.

In Wu Xiaoqius view, the above functions are of different importance in different financial systems. In the relatively backward financial system, debt financing in resource allocation can be regarded as very important, and more importantly, in debt financing, bank financing is particularly important. But it is obvious in modern financial system that the functional order and structure of these financing will change greatly.

In its view, the reason for the change is that three forces are promoting the reform of financial function and efficiency.

The first is the power of reform, which is mainly based on the marketization of disintermediation. Wu Xiaoqiu believes that financial disintermediation is the basic trend, and the realization of some financial demands needs to be disintermediated and completed through the market. The result is that the development of the financial market, especially the development of the capital market, will be conducive to the emergence of asset diversity and business diversity, and will better meet the needs of financial diversification. Dont think that there is only one kind of social demand -- financing demand. In fact, in addition to financing demand, with the development of economy and the improvement of income level, peoples demand for wealth management is becoming stronger and stronger, and the high-tech enterprises desire for venture capital is also growing stronger, and convenient, effective and safe payment formats are becoming more and more urgent. These are all they need. .

Wu Xiaoqiu stressed that market development based on disintermediation is the core element of financial reform. We should be highly aware of the importance of market development, and do not let Chinas finance return to a single financial system. We think that the financial risk can be controlled, but it is not. Although the traditional financial system has a single format, its risk is stock based and does not flow. Wu Xiaoqiu said, the biggest feature of finance is that the risk can be allocated and the finance can be safe only when the risk flows. Once a financial mechanism allows the risk to be quantified, the finance looks beautiful, but in fact, it is a big problem. Therefore, this is why we should promote financial disintermediation. Many of us dont realize the importance of it.

Wu Xiaoqiu said that in order to realize the above functions and the effectiveness of the functions, the financial industry must innovate. Without innovation, Chinas finance will not develop and there will be no future.

He mainly emphasized four aspects of innovation.

First, technological innovation. Wu Xiaoqiu believes that the reconstruction and subversion of technology on finance has completely changed the business forms of Chinas finance, promoted the diversity of Chinas financial formats, and improved the efficiency of finance. The improvement of financial efficiency can only be achieved through the promotion of science and technology.

We must think that the important goal of Chinas financial reform is to enable small and medium-sized enterprises to get appropriate financial services, and it is to enable the middle and low-income groups to receive appropriate financial services. This is the basic direction of Chinas financial reform and the core point of Chinas financial inclusion. Wu Xiaoqiu stressed that to achieve this goal, we must rely on technology. Because technology can break the boundary constraints of traditional finance.

The Internet-based financial industry, including online lending, has made great contributions. It has enabled small and micro enterprises that used to have no access to financial services to do so today. Although the cost may be higher, it is a kind of market demand.

To judge its value, it is very important to let it have access to financial services. Dont casually label a new financial industry as usury. There are standards for usury, Wu stressed.

Second, format innovation. Wu Xiaoqiu stressed that the financial industry should be diversified. In its view, peoples demand is different, credit is not the same, the risk cost is also different, only the diversified financial formats can meet the diversified financial needs, and should not try to make the financial formats into a single traditional mode.

There is a very correct saying that all financial activities should be included in the regulatory standards , but the key to the question is, what kind of financial regulatory standards should we adopt in the face of different financial formats? Have we worked it out yet? According to Wu Xiaoqiu, it is necessary to formulate a financial regulatory standard that is compatible with diversified and diversified financial formats.

Third, regulatory innovation. Wu said that Chinas financial industry will undergo significant changes based on the reconstruction and opening-up of market-oriented technology. Therefore, the regulatory system, mechanism and standards should be adjusted in real time. We can not treat all financial activities with a regulatory standard, which is the focus of Chinas financial reform. It is to promote the reform of Chinas financial supervision concept and system, which is the core of innovation..

Fourth, opening up and innovation. The core goal of opening up is internationalization.

Wu Xiaoqiu believes that with the promotion of the above forces, Chinas financial supervision will undergo great changes.

He specially mentioned that we should seriously study what the real economy is. Steel and cement are the real economy, while high-tech enterprises are still in the idea stage. They are also the real economy, which is more important. We must take a dynamic look at the real economy. We should not think that some enterprises invested by venture capital are going from real to virtual. It seems to be virtual today, but it is the real future. The core of finance is to pay attention to the future, and a viable finance must pay attention to the future .

Second, it must be inclusive finance. Small and micro enterprises and middle and low-income groups must be able to get appropriate financial or wealth management services.

Third, it must be a convenient and safe payment system. I have seen some reports about what measures should be taken to replace the current major third-party payments. If it can be safer, more convenient and cheaper, of course, it is no problem. If it is not particularly safe and the cost is not very low, this is something to think about. .

Wu Xiaoqiu said, what people love is good stuff. Alipay or WeChat pays well. Even I love it. I dont have a card on my body now. I think its annoying. I cant go back to the era of card payment. I cant go back to the era of cash payment. I cant afford to keep my pocket. The thousands of dollars in my bag are neither safe nor safe. Inconvenient, this is the basic direction, the basic law. Fourth, it must be innovative and transformative finance. It should pursue innovation, pursue change and not be satisfied with the status quo. Fifthly, it must be multi-functional finance. Not only the financing function, but also other more abundant functions, especially wealth management. Sixth, we must focus on the future of finance. Seventh, constantly changing and progressive regulatory finance. Source: Zhong Qiming, editor in charge of Netease Research Bureau_ NF5619

Wu Xiaoqiu said, what people love is good stuff. Alipay or WeChat pays well. Even I love it. I dont have a card on my body now. I think its annoying. I cant go back to the era of card payment. I cant go back to the era of cash payment. I cant afford to keep my pocket. The thousands of dollars in my bag are neither safe nor safe. Inconvenient, this is the basic direction, the basic law.

Fourth, it must be innovative and transformative finance. It should pursue innovation, pursue change and not be satisfied with the status quo.

Fifthly, it must be multi-functional finance. Not only the financing function, but also other more abundant functions, especially wealth management.

Sixth, we must focus on the future of finance.

Seventh, constantly changing and progressive regulatory finance.