At a critical moment, the State Council Finance Committee took action.
On March 16, the Financial Stability and Development Committee of the State Council held a special meeting to study the current economic situation and capital market issues.
As soon as the news came out, the screen was quickly refreshed, and market confidence was boosted.
From the afternoon to the evening of the same day, the People's Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange and other financial management departments have successively voiced their voices, expressing that they will resolutely implement the spirit of this special meeting and stabilize market expectations.
The Ministry of Finance has also made a public statement on the property tax.
It has to be said that it is rare for a high-level meeting to face market concerns directly and relevant departments to make such an intensive statement.
A series of policy actions to stabilize market expectations have been introduced one after another.
——China Clearing announced on the 17th that starting from April 2022, the minimum settlement reserve payment ratio for stock business will be reduced from 18% to 16%, and some registration and settlement fees will be reduced or exempted.
——The Shanghai and Shenzhen Stock Exchanges and the Beijing Stock Exchange have also successively stated that they will reduce or exempt the relevant fees of listed companies in 2022...
With the recovery of market confidence, people are more concerned about what kind of "combination punch" will the follow-up policy to stabilize expectations be?
So, let's take a look at the important information that has come in the past two days and see what policies are worth looking forward to.
(one)
"The monetary policy should take the initiative to respond, and new loans should maintain a moderate growth"
At present, both the domestic economy with increasing downward pressure and the increasingly complex international environment have put forward higher requirements for monetary policy.
The special meeting of the Finance Committee put forward the following requirements: "The monetary policy should be actively responded to, and new loans should maintain a moderate growth."
The central bank said that it will vigorously support small, medium and micro enterprises, firmly support the development of the real economy, and keep the economy operating within a reasonable range.
The China Banking and Insurance Regulatory Commission stated that to meet the reasonable financing needs of market players, increase the supply of financing ... to promote the increase, expansion and price reduction of financing for small, medium and micro enterprises.
The recent rise in global commodity prices has intensified imported inflationary pressures, the pace of monetary policy tightening in major developed economies has accelerated, and geopolitical risks have increased, adding to the uncertainty of the external environment.
In the face of the pressure and challenges of economic development, monetary policy needs to be more forward-looking and precise.
At the beginning of this year, the central bank proposed to expand the monetary policy toolbox to keep the total amount stable and avoid "credit collapse".
Against this background, my country's new loans in the first two months of this year exceeded 5.2 trillion yuan, an increase of about 270 billion yuan over the same period last year.
Despite this, the current shortage of effective demand and rising costs still have a certain impact on small, medium and micro enterprises. The recovery foundation of these market entities is not yet solid, and the pressure to achieve the annual economic growth target is not small. Internal and external risks and challenges have increased significantly. Monetary policy is more flexible and precise, and "actively responds".
The U.S. Federal Reserve announced a rate hike on the 16th, raising the target range for the federal funds rate by 25 basis points to between 0.25% and 0.5%.
In the face of the recent complex external environment, the market pays special attention to every move of the People's Bank of China.
At this time, my country's monetary policy must not only adhere to the principle of "taking me as the main force", but also "strengthen forward", take the initiative to act, work quickly, operate forward-looking, walk in front of the market curve, and guide expectations.
(two)
"Research and propose effective and effective risk prevention and mitigation solutions in a timely manner"
The risk of real estate companies is an important aspect of recent market concerns.
For the real estate sector, the Financial Committee meeting made it clear that it is necessary to timely research and propose effective and effective response plans to prevent and defuse risks, and propose supporting measures for the transition to a new development model.
The People's Bank of China stated that it will adhere to seeking progress while maintaining stability and prevent and defuse real estate market risks.
The China Banking and Insurance Regulatory Commission stated that it will actively promote the transformation of the development mode of the real estate industry, encourage institutions to carry out M&A loans in a stable and orderly manner, and focus on supporting high-quality housing companies to merge and acquire high-quality projects of difficult housing companies, so as to promote a virtuous circle and healthy development of the real estate industry.
The relevant person in charge of the Ministry of Finance stated that considering all aspects of the situation, the conditions for expanding the pilot cities for real estate tax reform are not met within this year.
Over the past year, under the influence of multiple factors, some real estate companies have encountered difficulties in sales collection and financing, and industry risks have continued to emerge.
The real estate industry has a large scale, a long chain, and a wide range of coverage, which has an important systemic impact on economic and financial stability and risk prevention. This concern is reflected in the market.
From various indications, the policy context for the real estate market is very clear:
We must not only adhere to the positioning that houses are for living, not for speculation, maintain the continuity and stability of regulatory policies, but also pay attention to avoid excessive adjustment and prevent the risk of disposal risks.
To this end, it is necessary to take effective and effective measures to prevent and defuse risks, and promote a virtuous circle and healthy development of the industry.
There are broken and standing.
On the one hand, we must prevent and defuse risks, and on the other hand, we must actively introduce supporting policies to promote the transformation of the real estate industry to a new development model.
Previously, the China Banking and Insurance Regulatory Commission and the Ministry of Housing and Urban-Rural Development issued documents to further strengthen financial support for the construction and operation of affordable rental housing.
After the deployment of the Financial Committee meeting, more policies are worth looking forward to.
(three)
"The Chinese government continues to support various companies to list overseas"
In the recent period, under the influence of various international and domestic factors, the concept stocks listed in the United States have continued to decline, and the pessimism has even been transmitted to the Hong Kong market and the A-share market.
Some market participants are concerned about the prospect of China-US audit and regulatory cooperation and the prospect of Chinese companies going overseas.
This financial committee meeting clearly showed our attitude: "The Chinese government will continue to support all kinds of companies to go public overseas."
The China Securities Regulatory Commission said that it will continue to strengthen communication with US regulators and strive to reach an agreement on China-US audit supervision cooperation as soon as possible.
We will promptly promote the implementation of the new regulations on the supervision of overseas listing of enterprises, support all kinds of qualified enterprises to go public overseas, and keep the channels for overseas listing unimpeded.
At the same time, China has been unswervingly promoting the two-way opening of the financial sector. Even when globalization is facing adverse currents, this determination and drive have not changed in the slightest.
Judging from these positive signals, among the securities regulatory authorities of China and the United States, the mainstream is to promote equal consultation, and cooperation is the way to solve problems.
Positive progress has been made in the Sino-US audit and supervision cooperation consultation, which is in line with the expectations of global investors. An early agreement is expected to ease concerns about the delisting of Chinese stocks.
After the implementation of the new regulations on the supervision of companies' overseas listing, the coordination of internal and external supervision around overseas listing will be further optimized, and the "red lights" and "green lights" of companies' overseas listing activities will be clearer.
It is believed that the implementation of the new regulations will provide more investment opportunities for global investors while supporting the financing development of various eligible enterprises.
(Four)
Platform Economic Governance "Red Lights and Green Lights Must Be Set"
The normative governance of the platform economy since last year has caused some people to misunderstand and interpret some normative measures as "suppression".
This meeting revealed many new trends worthy of attention: "Promote steadily and complete the rectification work of large platform companies as soon as possible"; for the first time, it was proposed that "red lights and green lights must be set well"... The implication of these expressions is: for the platform The supervision of enterprises is not just to regulate and not to develop, but to develop within the norms, and the norms are for better development.
The meeting emphasized that through standardized, transparent and predictable supervision, the rectification work of large platform companies should be steadily advanced and completed as soon as possible.
In April last year, the financial management department jointly interviewed some online platform companies engaged in financial business, and put forward requirements for self-examination and rectification.
It is believed that after a period of supervision and inspection, the rectification work has achieved phased results, the regulatory authorities have a more comprehensive and in-depth grasp of the risk base of platform companies, the rectification direction is clearer, and the regulatory measures are more precise.
The platform economy supervision system with equal emphasis on regulation and development will be gradually improved to promote the long-term healthy development of the platform economy.
The governance of the platform economy involves various aspects such as enterprises, industries, society, and finance, and requires multiple regulatory departments to work together.
The formation of a virtuous circle of platform economic development is inseparable from the policy synergy of relevant departments.
From a global perspective, this is a challenging topic.
It is believed that with the deepening of regulatory practice, our supervision of the platform economy will become more mature and perfect.
(Fives)
"Mainland and Hong Kong regulators should strengthen communication and collaboration"
In this round of the decline of Chinese concept stocks, the Hong Kong market has been affected a lot.
On the issue of financial stability in Hong Kong, the meeting pointed out that the regulators of the Mainland and Hong Kong should strengthen communication and cooperation.
In recent years, the interconnection and integration of the capital markets of Hong Kong and the Mainland have been deepening, and the stable operation of finance in the two places is more closely related.
Further strengthening the communication and cooperation between the regulators in the Mainland and Hong Kong will play a very important role in promoting the healthy development of the capital markets of the two places and maintaining Hong Kong's status as an international financial center.
The SFC stated that it will further promote high-level opening to the outside world, strengthen pragmatic cooperation between the mainland and Hong Kong capital markets, and jointly maintain the healthy and stable development of the Hong Kong market.
In fact, in recent years, many new economy companies have chosen to list in Hong Kong. The Shanghai-Shenzhen-Hong Kong Stock Connect, Bond Connect, and ETF products are running smoothly, and the mutually beneficial cooperation between the two markets is expanding and deepening.
Under the new situation, it is worth looking forward to how the mainland market and the Hong Kong market can further complement each other's advantages and carry out in-depth and all-round cooperation.
(six)
"Maintain stability and consistency in policy expectations"
The expectations are stable and the market is stable.
Market volatility often comes from uncertainty.
Regarding the policies that may have a significant impact on the economic and financial fields in the future, this special meeting of the Financial Committee gave very clear directions, and even the wording was harsh.
"Proactively introduce policies that are beneficial to the market, and cautiously introduce contractionary policies" "Respond to hot issues that the market is concerned about in a timely manner" "Intensify coordination and communication, and hold accountability when necessary"...
This is actually a further deepening of the spirit of the Central Economic Work Conference held in December last year.
Economic and social development is an interrelated and complex system. It is necessary to prevent the occurrence of the fallacy of synthesis, not to change the division of military control into one that only cares about itself and the others, and avoid the negative effects caused by the superposition of partial rational policies.
At present, the economic development task is heavy, the challenges are severe and complex, and it is a "must answer" for all localities and departments.
This puts forward higher requirements for policy system and coordination.
In the future, the formulation and implementation of policies should still adhere to systematic concepts and practical standards, follow economic laws, and test the success or failure of policies with practical effects.
The capital market is a concentrated reflection of various information and the confidence of all parties.
The meeting proposed that "all policies that have a significant impact on the capital market should be coordinated with the financial management department in advance to maintain the stability and consistency of policy expectations", which is a concentrated expression of stable market expectations and confidence.
(seven)
"Long-term institutional investors are welcome to increase their shareholdings"
"Long-term institutional investors are welcome to increase their shareholding ratio." This sentence about "real money" is also a very interesting statement at the Financial Committee meeting.
Bancassurance institutions are an important source of long-term funding.
The China Banking and Insurance Regulatory Commission stated that it is necessary to give full play to the advantages of long-term investment of insurance funds and guide insurance institutions to allocate more funds to equity assets.
Support insurance companies to increase capital market investment, especially stock investment in high-quality listed companies, through various channels such as direct investment, entrusted investment, and public funds.
The China Securities Regulatory Commission said that it will improve the institutional mechanism that is conducive to long-term institutional investors to participate in the capital market, increase the cultivation of various institutional investors such as public funds, and encourage long-term investment and value investment.
In the future, with the growing maturity of China's capital market, the proportion of long-term institutional investors to allocate equity assets is expected to continue to increase.
With the continuous establishment and improvement of the third pillar of pensions, pension-related financial products will continue to emerge, injecting more long-term funds into the capital market.
To sum up, face market concerns, send clear signals, manage expectations well, and introduce pragmatic measures to boost market confidence.
(Reporters Liu Hui, Li Yanxia, Wu Yu)