The People’s Bank of China website announced on March 18 that the People’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and the Zhejiang Provincial Government jointly issued an opinion on financial support for Zhejiang’s high-quality development and construction of a demonstration zone for common prosperity. The opinions propose to improve the capital market service mechanism for high-quality development, accelerate the promotion of high-quality development of listed companies, and guide enterprises to accurately connect with the multi-level capital market.
Industry experts said that the opinions clarified the work requirements and key areas of financial support for Zhejiang’s high-quality development and construction of a common prosperity demonstration zone, which will provide strong support for Zhejiang to build a common prosperity demonstration zone, and will also provide financial support for common prosperity and serve regional economic development. Experience and model building.
Improve the capital market service high-quality development mechanism
The opinions put forward the overall requirements of serving the high-quality development of the real economy, adhering to the purpose of finance for the people, advocating the concept of finance for good, and preventing systemic financial risks. Provide specific opinions on the level of international financial services, promote high-standard opening to the outside world, “innovate small and micro financial service models, and help narrow the income gap”, and clarify corresponding safeguards.
In terms of the capital market, the opinions put forward that the capital market should improve the mechanism for high-quality development of services. Accelerate the promotion of high-quality development of listed companies, and lead and drive a number of modern industrial agglomeration development through mergers and acquisitions. Support the Shanghai Stock Exchange, the Shenzhen Stock Exchange, the Beijing Stock Exchange, the National Equities Exchange and Quotations, and Zhejiang to jointly build an enterprise cultivation and special service mechanism, and guide enterprises to accurately connect with the multi-level capital market. Innovate the cooperation mechanism between the regional equity market and the National Equities Exchange and Quotations, and support eligible enterprises to list at the basic and innovative levels of the National Equities Exchange and Quotations, and to be listed on the Beijing Stock Exchange. Accelerate the promotion of regional equity market innovation pilots, explore market-oriented participation in the guidance of companies to be listed, and support regional equity markets to promote the model of county-level enterprise service bases. Encourage securities companies to participate in the regional equity market, initiate the establishment of special investment funds to serve the investment and financing of listed companies, and the maximum contribution ratio can reach 50%. Establish sino-foreign joint venture securities companies in accordance with regulations, explore and carry out equity investment and venture capital share transfer services, and steadily develop public offering of infrastructure securities investment funds.
Chen Li, chief economist of Chuancai Securities and director of the research institute, said that the opinions put forward to support the Shanghai and Shenzhen Stock Exchanges, the Beijing Stock Exchange and other measures to jointly build enterprise cultivation and special service mechanisms with Zhejiang, which will help Zhejiang to leverage multi-level capital. The market promotes the development of enterprises and supports the growth and expansion of enterprises. Innovating the cooperation mechanism between the regional equity market and the national SME share transfer system, and speeding up the promotion of regional equity market innovation pilots, will provide more inclusive financial services for small, medium and micro enterprises, and cultivate and deliver more high-quality backup listing resources.
The opinions proposed to support the Zhejiang Pilot Free Trade Zone to promote the construction of an international oil and gas trading center, deepen the futures cooperation with the Shanghai Futures Exchange, jointly build a bonded commodity data center, promote the warehouse receipt business cooperation between the two sides, and improve the oil and gas trading market system in the Yangtze River Delta.
“Zhejiang is not only economically active, but also has a very good service industry and industrial base, and also has a geographical advantage in energy import and export. Oil has an important basic strategic significance for the country’s development. The construction of an international oil and gas trading center will further revitalize the market and attract investment. “Chen Li said.
Broaden property income channels for urban and rural residents
In terms of helping to narrow the income gap, the opinion proposes to broaden the property income channels for urban and rural residents. Promote the construction of the Qiantang River financial harbor at a high level and build a wealth management highland. On the basis of legal compliance and commercial voluntariness, support qualified commercial banks to initiate the establishment of wealth management subsidiaries in Zhejiang. Support public fund companies to settle in Zhejiang. Encourage local operating institutions to provide excellent public fund investment advisory services and give full play to their wealth management functions. Support financial institutions in the steady development of diversified financial products such as investment funds, wealth management products, and trusts, and build a multi-level and diversified wealth management system that meets the needs of urban and rural residents.
“Wealth management can promote the effective conversion of national savings into investment, and optimize the ‘olive-shaped’ income distribution structure for the middle and small ones. While introducing financial institutions such as wealth management subsidiaries and public funds, it should also guide and focus on the development of inclusive wealth management, innovate more asset management products and services, especially increase the supply of products such as bank wealth management and public funds, and improve wealth management. Equality and convenience, meet the diverse needs of residents of all walks of life for wealth management, and increase residents’ property income in many ways.
Opinions put forward to help low-income groups increase their income. Increase financial support for market entities such as individual industrial and commercial households, family workshops, mobile vendors, people with flexible employment, and rural entrepreneurial groups, optimize financial services for migrant workers and farmers, and promote low-income groups to increase their incomes. Explore the introduction of insurance protection that is more in line with their diverse needs for new industries, new business forms and flexible employment personnel, and give full play to the role of insurance “stabilizers”.
Focusing on deepening the reform of green finance, opinions are put forward to create a model of green finance in Zhejiang. Promote banking and insurance institutions to explore climate risk assessment, and guide and promote more funds to invest in investment and financing activities in the field of climate change. Promote environmental, social and governance (ESG) information disclosure of listed companies, develop green bonds, explore green asset securitization, and study the establishment of a statistical evaluation system for green securities fund business.