Chinanews client, Beijing, March 2 (Reporter Li Jinlei) "Many people buy houses not for living, but for investment or speculation. This is very dangerous."

  On March 2, at a press conference held by the State Council Information Office, Guo Shuqing, Chairman of the China Banking and Insurance Regulatory Commission, called out and warned real estate speculators.

Guo Shuqing, Chairman of China Banking and Insurance Regulatory Commission.

Photo by Chinanews reporter Li Jinlei

Many people buy a house and invest in speculation is very dangerous

  Previously, Guo Shuqing wrote an article that real estate is the biggest "gray rhino" in terms of financial risks in China at this stage.

He pointed out that before the 2008 subprime mortgage crisis, US real estate mortgage loans exceeded 32% of GDP that year.

Currently, China's real estate-related loans account for 39% of banking loans, and a large amount of bonds, equity, trusts and other funds enter the real estate industry.

  At this press conference, Guo Shuqing once again talked about the "gray rhino" issue.

He said: “Many people buy houses not for living, but for investment or speculation. This is very dangerous, because holding so many properties, if the market goes down in the future, personal property will suffer a lot of losses, loans If it is not there, the banks will not be able to collect loans, principals and interest, and economic life will be greatly chaotic. Therefore, we must actively and steadily promote the steady and healthy development of the real estate market.

  Guo Shuqing said: "The problem of real estate should be said that financialization and bubbleization are still relatively strong, but the growth rate of loans invested in real estate last year dropped below the average loan growth rate for the first time. This achievement was not easy. We believe that real estate The problem will gradually get better."

  Data show that the bubble of real estate financialization has been curbed, and the growth rate of real estate loans in 2020 is lower than the growth rate of various loans for the first time in eight years.

  Guo Shuqing said: "Now we are also taking a series of further measures, each city's'one city, one policy', and the introduction of comprehensive real estate control measures. The purpose is to stabilize land prices, house prices, and expectations, and gradually solve the real estate problem."

Guo Shuqing, Chairman of China Banking and Insurance Regulatory Commission.

Photo by Chinanews reporter Li Jinlei

The blind expansion of financial assets has been fundamentally reversed

  At the press conference, Guo Shuqing also mentioned that the risks of the banking and insurance industry have changed from rapid divergence to gradual convergence, and a number of major problems and hidden dangers "precise bomb disposal" have firmly maintained the bottom line of systemic risks.

  Among them, the financial leverage ratio has dropped significantly, and the blind expansion of financial assets has been fundamentally reversed.

From 2017 to 2020, the average annual growth rate of total assets in the banking and insurance industries was 8.3% and 11.4%, which was roughly half of the average annual growth rate from 2009 to 2016.

The proportion of idling interbank assets within the financial system has dropped significantly.

  The identification and disposal of non-performing assets in the banking industry has made great strides. The cumulative disposal of non-performing loans from 2017 to 2020 is 8.8 trillion yuan, exceeding the total of the previous 12 years.

Shadow banking has been dismantled in an orderly manner, and its scale has dropped by about 20 trillion yuan from its historical peak.

  Guo Shuqing pointed out that financial illegal and criminal acts have been severely punished, the risks of illegal financial groups have been gradually resolved, a large number of illegal fund-raising cases have been dealt with in an orderly manner, and the Internet financial risk situation has fundamentally improved.

Data map: Bank cash counter at work.

Photo by Ai Qinglong

Ensure that financial innovation is carried out under the premise of prudential supervision

  Regarding the question of what role the Ant Group and other financial technology companies should have in the domestic financial market, Guo Shuqing said that the four departments interviewed the Ant Group's senior executives and released the interviews in a timely manner.

  He pointed out that Internet platforms participate in finance in China. They are the largest in scale and scope in the world, and have achieved positive results, especially in providing digital credit, digital insurance and other services to small, medium and micro enterprises. Very good, it should be said that it is a leader in the world, and there are many innovations. We encourage these innovations.

  "But at the same time, we also require financial services regardless of business format to be managed in accordance with corresponding rules, regulations, laws and regulations, and there can be no special exceptions." Guo Shuqing said.

  Guo Shuqing pointed out that there are some Internet private banks. For example, there is an Internet business bank under Ant Group, WeBank under Tencent, and an Internet bank in Sichuan. We all encourage development, but we must also implement unified supervision in accordance with financial rules.

"We don't think there are any restrictions or not allowing them to develop financial businesses, but any business we do, such as insurance, trust, leasing, and other financial businesses, must be supervised in accordance with the same rules in the industry. I believe that such requirements will be adjusted after adjustments. These institutions will adapt well and be able to achieve healthier development."

  Guo Shuqing emphasized that risk prevention should be the eternal theme of the financial industry, unswervingly monitor and resolve various financial risks, strengthen the financial rule of law, and improve long-term mechanisms.

Maintain a fair competitive market environment, strengthen anti-monopoly and prevent the disorderly expansion of capital, and ensure that financial innovation is carried out under the premise of prudential supervision.