Shang Fulin, director of the Economic Committee of the National Committee of the Chinese People’s Political Consultative Conference, former chairman of the China Securities Regulatory Commission, and former chairman of the China Banking Regulatory Commission:
The reform of the registration system in the whole market needs to be steadily promoted. The key to stable economic growth is to stabilize expectations
On March 9, Shang Fulin, director of the Economic Committee of the National Committee of the Chinese People’s Political Consultative Conference, former chairman of the China Securities Regulatory Commission, and former chairman of the China Banking Regulatory Commission, was interviewed by a reporter from Securities Daily on issues such as the reform of the market-wide registration system, stable economic growth, and financial support for the “dual carbon” goal.
Shang Fulin said that the reform of the market-wide registration system involves a wide range of interests and complex interests, and needs to be steadily advanced, continue to strengthen information disclosure, improve market issuance pricing, compact the responsibilities of intermediaries, cultivate qualified institutional investors and strictly supervise in accordance with the law; economic stability The key to growth is to stabilize expectations. At present, there are still many favorable factors and conditions to support the stable and healthy development of the economy. my country’s economic fundamentals have been improving for a long time, and China is in a period of important strategic opportunities for development. There is sufficient policy space and sufficient policy tool reserves; To achieve the “dual carbon” goal, we can start from three aspects: improving financial support policies, innovating green financial service products, and strengthening risk management of green and low-carbon transition.
Market-wide registration system reform
Conditions are gradually being fulfilled
This year’s government work report clearly stated that “the full implementation of the stock issuance registration system will promote the stable and healthy development of the capital market.” This indicates that the comprehensive registration system reform is gradually approaching.
“The reform of the registration system is not only a reform of the issuance link, but a reform involving all elements and chains of the capital market, leading to a comprehensive deepening of the reform and opening up of the capital market. Due to its wide range and complex interests, the registration system reform must be steadily advanced.” Shang Fulin said that since 2018, various preparations for the reform of the registration system in the whole market have been carried out in an orderly manner, the pilot registration system of the Science and Technology Innovation Board and the ChiNext Board have been successfully implemented, and the reform of supporting systems and rules has achieved important phased results. The conditions for the full implementation of the stock issuance registration system are gradually being fulfilled. The basic logic of the registration system reform is to properly handle the relationship between the government and the market, always adhere to the direction of marketization and rule of law, implement the concept of information disclosure as the core, and leave the right to choose to the market. To this end, we need to continue to do five aspects of work:
First, strengthen information disclosure. By establishing and improving relevant systems and rules and strictly implementing them, the quality of information disclosure of listed companies will be improved from the source, and the credit foundation will be consolidated. This is the key to the reform of the registration system.
The second is to improve market issuance pricing. The key is to give the market sufficient pricing autonomy on the basis of true, accurate and complete information disclosure, establish a market-oriented stock issuance inquiry system, improve the quality of institutional investors’ inquiry, reduce the space for rent-seeking, and make more effective use of the market in resource allocation. decisive role in.
The third is to consolidate the responsibilities of intermediaries. Various intermediaries such as law firms and accounting firms should perform their own duties and build an intermediary system based on information disclosure and market-based pricing. Consolidate the responsibilities of intermediaries for verification, verification and professional gatekeeping, and internalize the gatekeeping role of the regulatory authorities under the approval system into the active behavior of intermediaries.
Fourth, cultivate qualified institutional investors. The small scale of medium and long-term funds in my country’s capital market and the weak pricing power are important factors that cause large market fluctuations and high turnover rates. It is necessary to cultivate the concept of rational investment, value investment, and long-term investment, and introduce more qualified investors and medium and long-term funds into the capital market.
Fifth, adhere to strict supervision in accordance with the law. In the process of promoting the reform of the registration system, it is necessary to coordinate the construction of a series of basic systems in the capital market, including listed companies, intermediaries, delisting mechanisms, and multi-level markets. We should pay more attention to the regulation and guidance of capital, severely crack down on serious illegal activities such as fraudulent issuance and financial fraud, prevent the disorderly expansion of capital, promote the regulated and healthy development of various types of capital, and create a good ecosystem for the capital market.
Adequate policy space and tools
Support the steady and healthy development of the economy
At present, my country’s economic development is facing the triple pressure of demand contraction, supply shock, and weakening expectations. The government work report stated that “this year’s work must adhere to the principle of stability and seek progress while maintaining stability. In the face of new downward pressure, stable growth must be placed in a more prominent position.”
Talking about the key direction of this year’s economic work, Shang Fulin said that we must continue to adhere to the general tone of the work of seeking progress while maintaining stability, and continue to do a good job of “six stability” and “six guarantees”. The focus of “stabilization” is to stabilize the economic operation, stabilize the macroeconomic market, ensure that growth, employment, and prices do not experience large fluctuations, and that there are no regional systemic risks in the financial sector; the focus of “advance” is to adjust the economy. Structure and deepen reform and opening up, accelerate the construction of a new development pattern, ensure the transformation of economic development mode and innovation-driven development, and achieve new results. To handle the dialectical relationship between the two.
“The key to stable growth is to stabilize expectations.” Shang Fulin said that there are still many favorable factors and conditions to support the stable and healthy development of my country’s economy. my country’s economic fundamentals are still improving for a long time, and it is in a period of important strategic opportunities for development. There are enough policies. space and sufficient reserves of policy instruments.
First, to stabilize expectations, we must first stabilize the macro environment. Against the backdrop of global economic uncertainty, macro stability is the scarcest resource. More policies and measures conducive to economic stability shall be adopted, and inter- and counter-cyclical adjustments shall be increased. While continuing to implement a proactive fiscal policy and a prudent monetary policy, strengthen overall coordination with industrial, environmental protection and other policies. Do a good job in assessing the impact of policies on economic development before the introduction of policies, and fully consider policy convergence and superposition effects to make policy implementation more accurate.
Second, the key to stabilizing expectations is to stabilize the expectations of market players. Micro-market entities play a fundamental role in macro-economic stability and are related to people’s livelihood and employment. Continue to increase support for key groups such as small and micro enterprises, individual industrial and commercial households, and technological innovation enterprises, smooth the direct mechanism for fiscal and financial policies, implement fee reductions and tax reductions, and reduce the burden on enterprises. Increase support for the relief and development of the manufacturing industry, promote the transformation and upgrading of traditional industries and technological innovation of enterprises, enhance the endogenous driving force for development, and consolidate the micro-foundation. At the same time, we will continue to create a market-oriented, legalized, and internationalized business environment, maintain the continuity, stability, and sustainability of macro policies, ensure fair competition, and boost market confidence.
Finally, stable expectations must be driven by innovation. Steady growth cannot take the old path of relying on extensive development, but must focus on building a new development pattern and promoting high-quality development. In the long run, the green transformation of the economy and society and high-quality development will be further organically integrated, thereby shaping my country’s new advantages in participating in international competition. At the same time, with the accelerated iterative innovation of technologies such as the Internet, big data, cloud computing, artificial intelligence, and blockchain, the rapid development of emerging industries is bound to form more new growth points and poles.
However, it should be noted that my country’s financial risk prevention and control situation is still grim. For example, the risk of debt default of some enterprises has increased; many small and micro enterprises and individual industrial and commercial households are facing difficulties in production and operation; the hidden debt risks of local governments have further emerged; the risks of individual small and medium-sized banks are more prominent; the rebound pressure of banks’ non-performing loans has increased.
“These have put forward higher requirements for preventing and defusing financial risks and maintaining financial stability.” Shang Fulin said, first of all, financial risks must be handled prudently. Seize the key points, implement classified policies, accurately defuse bombs, and properly deal with the rebound of non-performing assets. Continue to rectify high-risk businesses, promote the disposal of high-risk institutions in an orderly manner, dismantle high-risk shadow banks, and strictly prevent funds from “developing from real to virtual”. Second, we must deepen the structural reform of the financial supply side. Through reforms, we will promote the risk reduction of financial institutions, continue to improve the quality and efficiency of financial services, and enhance the vitality of micro-subjects. Promote the adaptation of the financial structure to economic and social development, reduce the cost of the real economy, and improve the efficiency of resource allocation. Finally, it is necessary to strengthen the rule of law in the financial sector and improve the long-term mechanism. Strictly crack down on illegal and illegal financial activities, and adhere to the rules for licensed operation of financial businesses. Improve the local credit environment and financial ecology, and maintain a fair and competitive market environment.
The financial industry can start from three aspects
Helping achieve the “two-carbon” goal
In 2021, the financial industry will make positive progress in supporting the development of green and low-carbon industries, promoting the comprehensive green transformation of the economy and society, and helping to achieve the “dual carbon” goal.
Talking about how finance can further contribute to the “dual carbon” goal, Shang Fulin said that the “dual carbon” work is also a systematic economic and social change under multiple goals and multiple constraints. We must objectively understand the basic national conditions of our country. Compared with the 200-year industrialization process of western developed countries, the proportion of traditional industries in my country is still relatively high, the proportion of fossil energy in the energy structure is high, and the time to achieve the goal of “carbon peaking and carbon neutrality” is tighter and more difficult. . The transformation of economic development mode and the adjustment of economic structure, industrial structure and energy structure are inseparable from the strong support of finance. For finance, serving green development is both an opportunity and a challenge.
The first is to improve the financial support policies for energy green and low-carbon transformation. Guided by supporting the realization of the “dual carbon” goal, adjust and improve credit policies and investment policies. Further improve the statistics and assessment system, and provide effective incentives for financial activities that support green, low-carbon, and circular economy. Guide financial institutions to increase their support for carbon emission reduction projects, and promote the optimization and upgrading of traditional industries.
The second is to innovate green financial service products. Strengthen the construction of the carbon market, expand the field of financial innovation, and promote the continuous expansion and quality of carbon emission trading. Support eligible companies to issue green bonds such as carbon-neutral bonds to finance and refinance through the capital market. Explore ways of mortgage and pledge with environmental rights and interests as the content. Expand the coverage of green insurance, develop green trust and green investment, meet investment and financing needs related to green low-carbon technology, green production and green consumption, and improve green financial service capabilities.
The third is to strengthen the risk management of green and low-carbon transition. Integrate climate and environmental factors into a comprehensive risk management system. Prospectively study and judge the potential business risks of traditional energy and high-carbon industries, incorporate carbon performance and carbon pricing into the credit management process, and strictly control the carbon emissions of new projects. Use financial technology to improve climate and environmental risk management capabilities, actively explore environmental and climate risk management tools and methods, conduct scenario analysis and stress testing, and evaluate risk exposures formed by carbon emission reduction and environmental protection policies.
(Editor in charge: Zhang Ziyi)
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