The Central Economic Work Conference emphasized the need to “better coordinate development and security” and “effectively prevent and resolve major risks.” Development and security are like the two wheels of a car and the two wings of a bird. Only by coordinating development and security can we ensure that China’s economy can move forward steadily along the path of high-quality development.
Finance is the blood of the modern economy, and financial security is the core of national economic security, an important foundation for stable and healthy economic development, and a major hurdle that my country must cross to achieve high-quality development. We must, in accordance with the decisions and deployments of the Party Central Committee, deepen the reform of the financial system, promote the construction of a financial safety net, and continue to strengthen the ability to prevent and control financial risks.
Since the 18th National Congress of the Communist Party of China, the ability and level of my country’s financial services to the real economy have been significantly improved, financial risks have been generally restrained and generally controllable, and the modernization of the financial governance system and governance capabilities has continued to advance. At the same time, we must also see that the current task of high-quality development of financial services is arduous, financial reform, development and stability are facing a series of new issues and challenges, and many major issues must be resolved to prevent financial risks.
Effectively maintaining financial stability has become the top priority of my country’s financial supervision. In recent years, relevant departments have followed the basic policy of “stabilizing the overall situation, overall planning and coordination, classified policies, and precise bomb disposal” to fight the tough battle of preventing and defusing major financial risks, continue to promote and improve the long-term financial stability mechanism, and effectively respond to complex and severe domestic and foreign situations The impact and test of the new crown epidemic have maintained the overall situation of financial stability, security and development, and created a good environment for the sustainable and healthy development of the financial industry.
At present, my country’s financial industry is operating smoothly, and risks are generally controllable. However, due to the combined effects of historical, cyclical, structural and institutional factors, financial risks are still prone to frequent occurrence. It should be noted that my country has unique institutional advantages, the fundamentals of long-term economic growth are the most solid, and the foundation for stable financial development will not change. In the next step, we will continue to work hard to promote the normal cycle of real estate and finance, actively and steadily promote the risk disposal of small and medium-sized financial institutions, proactively respond to the risk of rebounding non-performing assets, actively cooperate with local governments to resolve hidden debt risks, and bring all types of financial activities into supervision in accordance with the law.
Preventing and resolving risks in the real estate industry is a key project for preventing and resolving economic and financial risks. We must adhere to the positioning that houses are for living in, not for speculation, and implement differentiated housing credit policies according to cities to meet the reasonable financing needs of the industry. At the same time, continue to consolidate the responsibilities of all parties, promote the risk resolution of key enterprises and small and medium-sized financial institutions, and prevent regional systemic financial risks.
At present, global inflation is still at a high level, but my country’s consumer prices have remained at around 2% for 10 consecutive years, fully proving the effectiveness of macro-control. Under the correct leadership of the Party Central Committee, we have strengthened the supply and price stability of energy and food, and at the same time adhered to the implementation of a prudent monetary policy, resolutely refrained from “flood irrigation”, and created a good monetary and financial environment to maintain price stability.
To deal with risks and challenges, we need to improve the system and the rule of law. Recently, the “Financial Stability Law of the People’s Republic of China (Draft)” once again solicited opinions from the society and made a comprehensive deployment of financial stability work, marking that my country’s financial security will open a new chapter that is more standardized and efficient. This will significantly improve the ability to prevent and control major risks, and play an important role in firmly maintaining the bottom line of no systemic financial risks. (Source of this article: Economic Daily Author: Jin Guanping)
(Editor in charge: Deng Hao)