China News Service, Shanghai, October 24 (Reporter Wang Enbo) Shang Fulin, director of the Economic Committee of the National Committee of the Chinese People's Political Consultative Conference, bluntly stated in Shanghai on the 24th that some so-called "financial innovations" violate the basic principles of the financial industry and pursue short-term profits.
He emphasized that the healthy integration of finance and digital economy is inseparable from effective supervision of financial technology.
Shang Fulin said during the 3rd Bund Financial Summit that day.
He pointed out that in the integration and development of finance and digital technology, new technologies, new models, and new business formats are being spawned, and new problems will inevitably continue to be faced.
For example, network externalities make it easy for leading platform companies to take advantage of data to form a monopoly, and it also makes such companies willing to seize the market at the cost of long-term losses.
Data is the price users pay for enjoying "free" services, and it is also a bargaining chip used by companies to gain monopoly status and create value in the future.
Once this dominant position is formed, the market structure may change.
From the perspective of risk prevention and control requirements, the breadth, depth, and speed of information dissemination also make the prevention and control of risks more difficult and more demanding.
Shang Fulin said that under the situation of rapid technological development, some market players have developed some financial products by taking advantage of the rapid spread of the Internet, strong customer acquisition capabilities, and low entry barriers. Externalities also magnify the possibility of cross-product and cross-market contagion of financial risks.
He said that by analyzing relevant risk cases, we can see that this type of so-called "financial innovation" has several characteristics: First, it violates the basic principles of security, liquidity, and profitability required by the financial industry, pursues rapid market share expansion, and pursues short-term development. Profiteering; second, it violates the basic requirements for risk prevention and control of different financial businesses, and there is no risk preparation or risk prevention measures; third, the intention is to use cross-market and cross-industry operations and multi-head arbitrage, which will eventually superimpose multiple risks.
Shang Fulin emphasized that in the process of actively advancing the development of the integration of finance and technology, it is necessary to always be soberly aware that the basic relationship between finance and the real economy for symbiosis and co-prosperity has not changed, the basic requirements of financial support for the development of the real economy have not changed, and finance must always pay attention The basic characteristics of the industry to prevent and defuse risks have not changed.
At the same time, we must adhere to the basic laws of the financial industry, promote the accelerated integration of finance and emerging technologies, and realize the stable and healthy development of finance under the support of emerging technologies.
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