Ji Zhihong: New Opportunities, Challenges And Tasks Facing Financial Pformation

At present, China's economic development is at a critical stage of accelerating pformation. < p >

From the international perspective, the impact of the financial crisis is still continuing. The world economy is difficult to get rid of the slow growth for a period of time. From the domestic perspective, whether it is the problem of overcapacity, or the rise of labor costs and the enhancement of resources and environmental constraints, all highlight the major challenges facing the original growth mode.

The pformation of the mode of economic development and the adjustment of economic structure are essentially a profound social change.

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< p > in fact, since the reform and opening up, financial reform has been deepening and developing under the background of economic pformation and structural adjustment.

Against this background, in order to meet the needs of the economic situation, China's financial reform such as interest rate and exchange rate has been pushed forward, and the pace of marketization has been accelerating.

As far as exchange rate reform is concerned, it is actually a package of policies to expand domestic demand. It is launched with other policies aimed at promoting the balance of international payments, and its significance also needs to be seen in the context of economic restructuring.

Similarly, for interest rate reform, we need to recognize the logical link between interest rate and resource factor price reform, industrial structure adjustment, local government investment and financing system, and state-owned enterprise reform. Under the background of China's "economic pformation" and "structural adjustment", we can not simply push forward interest rate reform.

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< p > in the coming period, with the deepening of the new round of economic restructuring and structural adjustment, it will also bring opportunities to accelerate the pformation of the financial industry.

At the same time, unlike the severe financial risk forced reform in the 90s of last century, the impetus for financial reform now comes from "financial restructuring (pushing) economic restructuring", that is, financial pformation can in turn promote economic restructuring and structural adjustment.

In the coming period, both excess capacity and wider structural adjustment will need to play the functional advantage of market interest rate in capital pricing, good use of the fittest and risk management, so as to promote economic pformation and upgrading.

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< p > the core issue of economic restructuring is to deal well with the relationship between the government and the market.

Although the role of the market allocation of resources has obviously increased, the soft budget constraint has also been greatly improved. However, there is no doubt that the government has much approval and intervention in the allocation of resources. On the other hand, the problem of supervision and service is not yet in place. The traditional traces of the planned economy still appear from time to time, such as administrative regulation, government and enterprise sharing, and financial and financial inequality. Under the government's achievement assessment mechanism with strong motivation and the pursuit of GDP speed, the government has intervened in the allocation of resources and even its own behavior, and has been competing for preferential investment, requiring financial institutions to provide funds or large debts through the financing platform.

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The role of the market in the allocation of resources rose to a decisive role in the period of < p > the third Plenary Session of the 18th CPC Central Committee. What we are trying to solve is the co-existence of excessive government intervention and inadequate supervision in the allocation of resources, which not only points out the direction for changing the functions of the government, but also brings new opportunities for deepening the financial reform.

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< p > the market system based on fair, open and pparent market rules and competitive market is the basis for optimizing the allocation of resources.

The Third Plenary Session stresses the general rules of modern market system such as "equal rights, equal opportunities, and equal rules". It ensures that the ownership of all kinds of ownership economy is equal to the use of production factors according to law, and that it is fair and fair to participate in market competition.

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< p > the general rules for the construction of modern market system include the unified < a href= "http://www.91se91.com/news/index_c.asp" > market access rule < /a >, including the fair regulation after admittance and the orderly market exit under the mechanism of survival of the fittest.

With the establishment of uniform market access rules, the marketization of interest rates and the development of financial innovation, the competition ecosystem of financial system is facing major changes, and various market risks may increase. It is objectively required to improve the market withdrawal mechanism of financial institutions. This is not only the basis for optimizing the allocation of resources in the financial market system, but also an important guarantee for maintaining macro financial stability.

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Generally speaking, if many reforms in China in the past period have the characteristics of "crossing the river by feeling the stones," and making decisions by camera, we need to take the initiative in advancing in a more systematic way at a new historical starting point in the coming period. "P"

The next step is to focus on deepening the reform in terms of institutional mechanisms, and accelerate institutional innovation from the two dimensions of promoting marketization, enhancing efficiency and maintaining financial stability and risk prevention.

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< p > play the decisive role of the market in the allocation of resources. Objectively, it is necessary to improve the mechanism that decides the price mainly by the market, and all those that can form the price from the market to the market, and the government does not make improper intervention.

By coordinating the reform of interest rate marketization, exchange rate formation mechanism and RMB capital account liberalization, capital prices will fully reflect the actual supply and demand situation, and help to achieve a virtuous circle of financial system and economic development, which is related to the whole process of changing the mode of development and structural adjustment.

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< p > what needs to be pointed out is that in the coming period, the way to promote the marketization reform of the a href= "http://www.91se91.com/news/index_c.asp" > interest rate < /a > interest rate should also focus on the systematization and coordination of the reform. It should focus on the financial institutions and the financial market itself, such as speeding up the cultivation of the market pricing benchmark and improving the pricing ability of financial institutions, etc., and more importantly, we should focus on improving the external environment, such as fair access in regulation, and promote full competition in the market. At the same time, we should speed up the pformation of government functions, and strive to solve the problem of excessive government intervention in resource allocation and the indistinction of credit between government and enterprises, and form a positive interaction between the marketization of capital elements and other reforms.

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< p > in the coming period, we should strive to build a more competitive and inclusive financial market system, creating conditions for the marketization of capital factors such as interest rates, and better meeting the needs of all kinds of market players in multi-level financial services.

First, we should optimize the financial competition ecosystem and promote the equal investment and financing of all kinds of market players.

The two is to establish a more balanced financing structure and improve the financial market system.

Three, we should develop inclusive finance so as to make financial development more fruitful and fairer and benefit all the people.

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< p > < a > href= > http://www.91se91.com/news/index_c.asp > Financial Management > /a > the key to structural reform is also to solve the problem of excessive government intervention and inadequate supervision. We should focus on the following reforms in accordance with the spirit of the third plenary session, drawing on international experience and combining with China's national conditions: < /p >

< p > to further build and perfect the macro management framework of counter cyclical macro Prudential Management and effectively prevent systemic financial risks.

In the central and local financial supervision responsibilities and risk disposal responsibilities, we must adhere to the central financial management department's unified management of the financial industry, and urge local governments to change the tendency of "emphasizing development and ignoring supervision", and fulfill relevant functions according to the principle of "regionally".

We should speed up the construction of the market withdrawal mechanism such as the deposit insurance system, strengthen the protection of depositors, and improve the financial infrastructure such as payment and credit, so as to lay a solid foundation for ensuring the safe and efficient operation of the financial market and the overall stability.

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