On September 12, at the 4th Jinjialing Wealth Management Forum, Wang Zhaoxing, Counselor of the State Council and former vice chairman of the China Banking and Insurance Regulatory Commission, delivered a speech on the topic of “Strengthening the Foundation and Environmental Construction for the Healthy Development of the Wealth Management Market”. Wang Zhaoxing said that in the new era and new pattern, my country’s wealth management has huge development space and potential, and the foundation and environment of the wealth management market should be strengthened.
Wang Zhaoxing pointed out that under the new era and new pattern, my country’s wealth management has huge development space and potential. The healthy development of the wealth management market is of great significance for advancing the process of socialist modernization and better satisfying the people’s yearning for a better life. First, it is conducive to optimizing the financial structure, improving the imbalance of my country’s financing structure, and promoting the rapid development of the capital market. Second, it is conducive to raising long-term stable funds and supporting technological innovation. Third, it is conducive to promoting the steady growth of property income, forming a stronger wealth effect, increasing residents’ consumer confidence and ability, and stimulating the endogenous driving force for high-quality economic development. Fourth, it is conducive to the development of pension finance, promotes the organic integration of wealth management and the construction of the second and third pillars of pension security, alleviates the structural imbalances and contradictions of my country’s pension security system, and promotes the construction of a multi-level pension security system.
How to develop the wealth management market in a healthy way? Wang Zhaoxing believes that the foundation and environment of the wealth management market should be strengthened. The first is to strengthen the transparency of the wealth management market. The stability and efficiency of financial markets depend on the timeliness, accuracy and adequacy of information. There may be complex principal-agent relationships in the field of wealth management. If there is information asymmetry, it will bring serious moral hazards, and even trigger trust, confidence and credit crises, which in turn will lead to systemic financial crises. We must increase the intensity of information disclosure of wealth management products and markets, improve the transparency of information, and be able to penetrate the identification and assessment of underlying asset risks, and avoid the accumulation of risks.
The second is to strengthen the construction of the internal restraint mechanism of the wealth management market. Let the market play a decisive role in promoting the efficient allocation of financial resources. Wealth management should be highly market-oriented, and market mechanisms should be respected, market rules should be observed, and market discipline should be continuously strengthened under the constraints of market rules. Promote industry competition, the survival of the fittest, and avoid vicious competition and bad money driving out good money.
The third is to strengthen the legalization of the wealth management market. A sound legal system is the foundation for the healthy development of the wealth management market. The institutional system centered on new asset management regulations has been continuously improved, further unifying asset management product standards and eliminating arbitrage space. In the next step, it is necessary to further improve relevant laws and regulations on the basis of summing up the experience and lessons of domestic and foreign wealth management practices. Strengthen supervision and cooperation with public security, judicial, disciplinary inspection and supervision departments, and resolutely crack down on money laundering and financial fraud in the field of wealth management.
The fourth is to strengthen the construction of a regulatory system for the wealth management market.After several years of vigorous rectification and regulation, chaos and risks in the wealth management market have been effectively controlled. A large number of illegally established wealth management institutions and illegal salesFinancial managementThe product was banned, and the problem of unlicensed driving was rectified. Our country should continue to maintain the intensity of supervision, strengthen the pertinence and effectiveness of supervision, and prevent the resurgence of risks. It is necessary to improve the digital and intelligent level of supervision, and enhance the forward-looking and penetrating nature of supervision.Bank、insurance, Trust, securities,fundFinancial institutions, such as futures, futures, and some financial institutions are involved in wealth management. They must strengthen regulatory coordination, unify regulatory standards, improve close coordination of prudential regulation, functional regulation, behavioral regulation, and market regulation to form a combined regulatory force.
The fifth is to strengthen the infrastructure construction of the wealth management market. To operate efficiently and safely, there must be infrastructure support, including product issuing systems, registration systems, trading systems, and clearing systems.
The sixth is to strengthen the construction of a protection system for the legitimate rights and interests of investors. In the past, problems in the wealth management market that infringed on the legitimate rights and interests of investors occurred from time to time, and some of the effects were very bad. Protecting the legitimate rights and interests of investors is an important measure to maintain financial and social stability and promote the healthy development of the wealth management market. It is necessary to speed up the improvement of relevant systems and mechanisms, such as speeding up the formulation of the Regulations on the Protection of the Rights and Interests of Financial Investors. Severely crack down on financial fraud, illegal financial activities and other illegal activities that damage the legitimate rights and interests of investors in accordance with the law. It is necessary to further strengthen the popularization of financial knowledge and risk education, and improve investors’ risk identification and self-protection capabilities. It is necessary to do a good job in policy interpretation and expected guidance in a timely manner to create a good policy and public opinion environment for the healthy development of the wealth management market.
The seventh is to strengthen the monitoring and disposal of major risks in the wealth management market. Wealth management is related to the “pocket” of the broad masses of people. Once a major risk occurs, it may quickly evolve into a social risk or even a political risk, which will cause a serious impact on the economy and society. We must adhere to the bottom line thinking and firmly hold the bottom line that systemic financial risks do not occur. It is necessary to consolidate the responsibilities of financial institutions, regulatory agencies, local governments and other parties. Once a risk is discovered or a major risk breaks out, it is necessary to take timely measures to deal with it to prevent the accumulation and spread of risks, and earnestly maintain financial stability and security. The process of socialist modernization is progressing smoothly.
Wang Zhaoxing also said that the last and most important point is to strengthen the construction of wealth management infrastructure and strengthen the construction of professional talents and professional institutions.
(Source: Securities Times)
.