China News Service, Beijing, August 18th, title:
(Economic Observation) The central government again "prescribes prescriptions" for financial risks. What is the difference after three years?
China News Agency reporter Xia Bin
Financial risks have once again attracted the attention of China's top leaders.
The 10th meeting of the Central Finance and Economics Committee (hereinafter referred to as the "China Finance Committee") held recently to study the prevention and resolution of major financial risks and to do a good job in financial stability and development.
The last meeting of the China Finance Committee discussed preventing and resolving financial risks was on April 2, 2018. After more than three years, "prescriptions" were re-prescribed. What's the difference this time?
There are both "transcripts" and "physical examination sheets"
Preventing and resolving major risks is one of the three tough battles set by the 19th National Congress of the Communist Party of China. Years of work have been recognized at this meeting.
The meeting stated that the battle to prevent and resolve major financial risks has achieved important phased results, maintained the bottom line of no systemic financial risks, and effectively safeguarded the country’s economic and financial stability and the safety of people’s property.
In fact, China’s financial risks have shifted from rapid divergence to gradual convergence. A number of major hidden dangers have been “precisely dismantled”, such as a significant decline in financial leverage, a large number of illegal fund-raising cases have been dealt with in an orderly manner, and the Internet financial risk situation has gradually improved. , It is also timely and effective in responding to external risk shocks, and the financial system maintains a strong resilience.
In addition to the "transcript", there is also a "physical examination form" in the financial sector.
The meeting proposed that we must adhere to the bottom line thinking, strengthen the system concept, follow the principles of marketization and rule of law, and coordinate the prevention and resolution of major financial risks.
What are the current financial risks in China?
Li Peijia, a senior researcher at the Bank of China Research Institute, believes that we must now prevent the transmission of external risks, including financial market fluctuations caused by the Fed’s monetary policy adjustments, and the adverse effects of global commodity prices on domestic companies. We must also pay attention to internal risk pressures. Including the tendency of the real estate market to bubble up, the intensification of fiscal revenue and expenditure contradictions leading to local government debt problems, etc.
Tian Lihui, Dean of the Institute of Financial Development of Nankai University, said that it is necessary to see that the debt pressure of many Chinese companies due to the impact of the epidemic has not been completely resolved. Financial risks may accumulate under the rapid development of technology.
Risk prevention and stable growth complement each other
Finance is the core of the modern economy and is related to development and security.
The meeting emphasized that it is necessary to consolidate the foundation of financial stability, handle the relationship between stable growth and risk prevention, consolidate the momentum of economic recovery, resolve systemic financial risks with high-quality economic development, and prevent secondary finance from being triggered in the process of handling risks in other fields risk.
"Preventing financial risks is the foundation of economic growth. Once a major financial risk event occurs, economic growth may stagnate or even regress. Risk prevention and stable growth are complementary. In the process of achieving high-quality economic growth, many financial risks can be If it is resolved, the economy can be stable with financial stability, and the economy can be strong.” Tian Lihui emphasized that risk prevention cannot create new risks, and risk prevention policies and measures must be formulated around stable economic growth.
In Li Peijia’s view, stabilizing growth and preventing risks are unified. In the short term, we must grasp the process and pace of risk prevention, and control the intensity of policies. In particular, some financial relief policies introduced in the early stage should be taken. And yes, do not set a so-called exit timetable. The exit of these policies should be gradual, focusing on strengthening expectations and guidance, so that market entities can better adapt to changes to reduce financial risks.
Requires regulatory capabilities to keep pace with the times
In recent years, China’s informatization construction has entered a new stage of rapid development. The innovative application of information technology has always been accompanied by the reform and development of the financial market. Stability and financial supervision pose challenges.
The meeting specifically emphasized the improvement of the supervisory capabilities of the cadres of the financial system, the enhancement of the level of digital and intelligent supervision, and mentioned the need to strengthen the financial rule of law and infrastructure construction, deepen the construction of the credit system, and give full play to credit in the identification, monitoring, management, and disposal of financial risks. Basic role.
Tian Lihui said that with the emergence of new technologies and new business formats, the regulatory authorities must also keep pace with the times and use big data and artificial intelligence for supervision. However, it should also be clear that "the best machines are also tools." It falls to the people, so it is also crucial to improve the ability of supervisory cadres to deal with the new supervisory environment.
Shang Fulin, member of the Standing Committee of the National Committee of the Chinese People’s Political Consultative Conference and director of the Economic Committee of the Chinese People’s Political Consultative Conference, also publicly stated that it is necessary to further strengthen the automated data reporting and processing and real-time monitoring and early warning, explore and promote the application of big data, artificial intelligence and other technologies in financial supervision, and continue to dynamically track finances. The business development and risk changes of technological innovation ensure that the knowledge and skills of supervisors are sufficient to deal with new technologies.
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