-Editorial

  Improving the professional capabilities of financial institutions as soon as possible, strengthening risk prevention and control research, further focusing on investor protection, and strengthening investor education have become important topics in the process of financial globalization.

  U.S. stocks have suffered continuous historical meltdowns, crude oil has fallen to historically negative numbers, and stockholder Buffett has suffered huge losses ... The "black swan" has been flying out since 2020, and the international capital market is in a fierce turbulence. Control, was put on the agenda of the country's highest financial regulatory agency.

  On May 4, the meeting of the Finance Committee of the State Council pointed out that it is necessary to attach great importance to the risks of some financial products caused by current fluctuations in international commodity market prices, raise risk awareness, and strengthen risk management and control. It is necessary to control spillovers, grasp moderation, improve professionalism, respect contracts, clarify responsibilities, and protect the legitimate interests of investors. Among them, the most concerned is the first mention of "highly attaching importance to some financial product risk issues caused by current international commodity market price fluctuations."

  Against the background that the impact of the epidemic has not disappeared, this statement of the Finance Committee has triggered many interpretations. Regarding the recent incident of the Bank of China's crude oil treasure incident, this paragraph is undoubtedly quite relevant.

  Just a few days ago, because the US WTI crude oil futures fell out of the first negative settlement in history, the affected investors of BOC crude oil not only lost their money, but also owed the bank 1 to 2 times the money. According to reports, BOC Crude Oil has more than 60,000 customers, and the overall loss caused by the position-crossing incident is not less than 9 billion yuan.

  This also sounded the alarm: with the continuous acceleration of the internationalization of China ’s financial market in recent years, the enthusiasm of banks, insurance and other financial institutions to participate in the international market has also increased. For investors, the choice of financial products is also Increasingly diverse. However, compared with the international financial market that has been developed for hundreds of years and the design of various mechanisms is quite mature, both domestic financial institutions and local investors are obviously "experienced".

  Taking this crude oil treasure incident as an example, prior to this, many investors' perceptions of risk may only know that their highest risk was nothing but a "closed position", and most of them may not have dreamed of it. There is not only a loss of money, but also a “breakthrough” that owes money.

  Compared with the junior local financial institutions, domestic investors can be said to be more "hands-free" in front of the battle-hardened "Wolf of Wall Street". According to the survey, over 90% of BOC Crude Oil Investors are newbies, and many of them only started in March this year. It is for this reason that improving the professional capabilities of financial institutions as soon as possible, strengthening risk prevention and control research, further focusing on investor protection, and strengthening investor education have become extremely important topics in the process of financial globalization.

  Global financial integration is an inevitable choice for world economic and financial development. But what needs to be seen is that financial globalization brings potential benefits that cannot be ignored to the development of Chinese financial institutions, but also brings risks that cannot be underestimated. Whether it was the global spread of the previous financial crisis or the Bank of China crude oil incident, it was precisely the loss of real money that sounded the alarm for financial risks.

  Although the ability and scope of Chinese financial institutions to participate in the international market have increased in recent years, the internationalization of Chinese banks still has a long way to go. Whether it is from the scale indicator of the ratio of overseas assets, or from certain quality indicators (such as risk-adjusted rate of return indicators, etc.), the internationalization of Chinese banks is still far from the international level. Faced with the “Wolf of Wall Street” fighting for many years in the jungle of market competition, there is still no effective risk response measures.

  In addition, in active financial innovation, the current progress of Chinese-funded institutions in various fields is unbalanced. For example, the innovation of financial instruments, products, and services has been slow; in asset-based businesses, there are few financial innovations that can truly guarantee returns and transfer risks, which also makes their risk hedging capabilities insufficient.

  After the epidemic, the global economy has entered a new era of uncertainty. It is foreseeable that the degree of turbulence in the global capital market will only continue to rise in the future, and the risk factor will also be higher and higher. How do Chinese financial institutions participate deeply in the market, while enjoying global capital allocation, as much as possible to protect their own interests, strengthen investor protection awareness, and provide users with more protection "fences", not only need "high attention" from the regulatory authorities, It also requires reflection and cultivation from the financial industry.