Wu Jian: In the new round of steady growth, the financial industry must persist in keeping upright and innovating

　　Chinanews.com, Nov. 23, title:

　　Author Wu Jian, Senior Researcher, Chongyang Institute for Financial Studies, Renmin University of China, Former Vice President of China Everbright Bank

　　At a time when the world is facing major changes unseen in a century and my country is embarking on a new journey of Chinese-style modernization, the report of the 20th National Congress of the Communist Party of China pointed out that "high-quality development is the primary task of comprehensively building a modern socialist country", which fully demonstrates Development is the party's top priority in governing and rejuvenating the country, and high-quality development is the fundamental path to start a new journey and achieve new goals.

　　my country's economy started this year generally well, but affected by various factors, the triple pressure of "demand contraction, supply shock, and weakening expectations" met unexpectedly.

At present, the effects of various policies for stabilizing growth determined at the beginning of the year have been initially released, alleviating some outstanding contradictions, and the policy bonus of the 20th National Congress of the Communist Party of China has further stabilized market expectations.

　　However, due to the profound changes in global politics and economy and the impact of repeated epidemics, my country's economic recovery is still weak, which is manifested in the increased risk of spillover in the international market and the continuous contraction of external demand. The related manufacturing supply and demand have slowed down; Sales have bottomed out and stabilized but are still weak, real estate companies still have tight cash flow, and some local government finances and infrastructure are affected by this; consumption under the impact of the epidemic has not yet recovered in place, and the pressure on related small, medium and micro enterprises has not yet been fully alleviated.

　　For this reason, the task of resolving overall corporate risks, real estate risks, and local hidden debt risks is still arduous, and it is still arduous to do a good job in a new round of stable growth. "Stable growth and broad credit" are still the main theme of the policy. The financial industry has both Unshirkable responsibility, but also the ability and action of keeping upright and innovative.

1. Adhere to integrity and innovation, and take strong support for the real economy as the focus of high-quality financial development.

　　To establish a new development pattern in which the domestic cycle is the main body and the domestic and international dual cycles promote each other, objectively, it is necessary to trace the source of finance and make breakthroughs in serving the real economy.

The financial industry must further change its thinking, speed up the return to the origin of finance, and make further contributions to the "six stability" and "six guarantees".

　　One is to change strategic thinking and return to serving the real economy.

Loose credit depends not only on the central bank injecting more base money into commercial banks, but also on the loose credit output of financial institutions based on the capital needs and credit status of market entities.

Financial institutions have their own traditional strategic preferences, profit preferences, and risk preferences within the corporate governance structure. The implementation of a loose credit environment is bound to challenge these preferences.

In the face of various risks brought by the domestic and foreign economies and the severe impact of the epidemic, the endogenous capital replenishment and profitability of financial institutions have also been greatly challenged. Exporting loose credit means increasing responsibility and making greater efforts to solve these problems. The root cause of the contradiction is that the financial industry must change its strategic thinking and anchor high-quality development.

　　The second is to continue to promote the growth of social financing such as credit to ensure the stability of the economic market.

It is necessary to further follow the unified deployment of the central government, focus on the needs of the development of the real economy, establish credit mobilization goals, increase credit reserves and release, focus on infrastructure, manufacturing and green finance, optimize credit approval, and increase assessment and evaluation measures. Increase delivery and focus on services.

It is the above-mentioned measures in place that have enabled the initial release of the effect of "steady growth and broad credit" this year.

As of September 2022, the cumulative increase in social financing scale reached 27.77 trillion yuan, an increase of 3.01 trillion yuan year-on-year, and the increase in RMB loans was 18.08 trillion yuan, an increase of 1.36 trillion yuan year-on-year.

A total of 265 companies on the Shanghai Stock Exchange and the Shenzhen Stock Exchange issued IPOs, raising 479.1 billion yuan. The financing amount of the Science and Technology Innovation Board and the Growth Enterprise Market accounted for more than half of the entire market during the same period. Special financial bonds for small and micro enterprises issued 225.51 billion yuan, and special financial bonds for "three rural areas" 21.42 billion yuan.

　　The third is to effectively reduce the burden on the real economy and reduce the financing costs of real enterprises.

It is necessary to comply with the policy orientation of the state to reduce financing costs, strengthen differentiated pricing support, and help reduce the comprehensive financing costs of enterprises.

Especially for small and medium-sized enterprises and industries that have been greatly affected by the epidemic, financial institutions should not only start from the financial supply side, introduce diversified financial needs of various enterprises, and overcome difficulties with enterprises, but also promote tax cuts and profit concessions, and guide low-price funds flow to the field of micro, small and medium-sized loans.

From January to September this year, the weighted average interest rate of newly issued corporate loans was 4.24%, a decrease of 0.29 percentage points from the same period of the previous year, which is at a historically low level.

2. Adhere to integrity and innovation, and make financial innovation the driving force of technological innovation and industrial transformation.

　　The report of the 20th National Congress of the Communist Party of China pointed out that "to build a modern industrial system, insist on putting the focus of economic development on the real economy, promote new industrialization, and accelerate the construction of a manufacturing power, a quality power, a space power, a transportation power, a network power, and a digital China."

The key to achieving the above goals of strengthening the country is to insist on establishing the core position of innovation in the modernization drive. Technological innovation leads the industrialization of science and technology and industrial technology, and financial innovation helps technological innovation and industrial upgrading and fission. A powerful drive towards modernization.

　　First, the innovation of financial business forms should vigorously develop multi-level financial markets and various financial business forms, and constantly cultivate new momentum and new advantages of financial development.

Through financial innovation, promote the realization of the value of technological capital, and promote the accelerated fission and upgrading of traditional industries.

It is necessary to build the capital market into a hub to promote technological innovation and the transformation and upgrading of the real economy.

Support and encourage large or high-quality enterprises to accelerate financial disintermediation and use capital market products and tools to reduce their financing costs.

In particular, through means and tools such as the Science and Technology Innovation Board and the Beijing Stock Exchange’s transfer-in system, support technological innovation companies and small, medium and micro enterprises to increase their direct financing ratio.

It is necessary to promote the balance and accessibility of basic financial services according to the industry life cycle and industry scale, and improve the adaptation of financial institutions such as banks, securities, insurance, funds, trusts, leasing, wealth management, asset management, and futures to serve the real economy sex.

At the same time, in response to the changes in the international environment, it is necessary to continuously improve the overall financial ecological chain, create an offshore RMB ecosystem and explore the digitalization of RMB in depth, so as to create conditions for the internationalization of RMB.

　　Second, financial product innovation should focus on key points, implement differentiated services through financial product innovation, and strengthen financial innovation support for economic transformation and upgrading.

Guide more funds to invest in advanced manufacturing and strategic emerging industries, better serve key core technology public relations companies and "specialized and new" companies, encourage innovation in more green financial products and services, and increase innovation in inclusive financial products.

With the help of digital technology, continuously optimize and improve products such as "investment-loan linkage" and "supply chain finance" to improve the efficiency of risk control for small, medium and micro enterprises, reduce their default rate, and solve their problems of difficult and expensive financing.

　　Third, the innovation of the financial system should focus on the requirements of the central bank and regulatory authorities, and carefully sort out corporate governance, strategic planning, risk management and control, and incentive mechanisms.

Financial innovation must not only support and serve the real economy, but also effectively control risks.

No matter what kind of business form financial innovation appears in, it must comply with laws and regulations, which is the premise of innovation.

It is necessary to further regulate traditional finance, technological finance, and platform financial innovation in accordance with laws and regulations, and effectively incorporate them into strict supervision.

3. Adhere to integrity and innovation, and focus on improving the ability and level of high-quality financial services.

　　One of the objective criteria for measuring financial services is whether they can realize the effectiveness of resource allocation, and the key to effective financial allocation depends on the method and level of financial services.

In the past, financial institutions used to cover up the singleness and homogeneity of their services with the expansion of their balance sheets, lacking the diversity and personalization of financial services; they were used to serving high-end enterprises and powerful groups, and lacked the technical content of finance and the awareness of inclusive services ; Accustomed to serving a single enterprise customer, lack of overall service awareness of the industrial chain and ecological cluster.

　　The first is to strive to provide efficient and convenient services for entity enterprises.

According to different customer objects, conduct precise marketing on the potential needs of customers for financial services, improve the ability to actively acquire customers; provide customers with low-cost, distinctive, high-yield, and convenient financial service solutions, with personalized financial products, considerate Financial services, fast financial channels to meet customer needs, including the provision of "one-stop service", "pre-trial", "one case one discussion" and other service measures to choose from various financial products.

　　The second is to continue to sink financial service objects, enhance the awareness of inclusive services, and work together to break the bottleneck of capital elements and resources.

It is necessary to guide small and micro enterprises to transform into industries with high technology content, low energy consumption and good benefits, extend the industrial chain, and promote the supporting development of leading enterprises and small and micro enterprises.

At the same time, it is necessary to guide and promote the agglomerative development of small and micro enterprises, and promote the upgrading of block economy to industrial clusters, so as to meet the financing needs of small and micro enterprises through industrial chain finance and ecological chain finance; actively build a network between financial institutions and enterprises Communication platform, explore new forms of mortgage for small and micro enterprises and the scope of mortgageable assets, accelerate the opening of IPO and expansion of the new third board, support the establishment of national small enterprise development foundation funds, etc., to serve innovative enterprises; to establish a unified credit system for small and micro enterprises , by integrating the basic data, financial data and business behavior data of small and micro enterprises in the fields of banking, industry and commerce, taxation, equity transactions and e-commerce, build an open, shared and transparent small and micro enterprise credit platform, and guide small and micro enterprises to improve their financial systems , pay attention to the construction of credit, and expand the coverage of credit loans.

　　The third is to take the initiative to participate in the process of customer value chain, change the past from single customer service to supply chain and industrial chain cluster customer service, and participate in the continuous innovation of enterprise value chain throughout the process.

According to the characteristics of industrial chain clusters, make full use of financial technology means to effectively integrate traditional and non-traditional business resources through innovations in the combination of industry and finance such as supply chain finance, industrial chain capital, and ecological chain funds, and realize the traditional ecological financing intermediary to provide comprehensive financial services. The transformation of the omnipotent intermediary of the service plan promotes the advancement and breakthrough of industrial transformation, and enhances the status of domestic enterprises in the global industrial chain.

4. Adhere to integrity and innovation, and tap the potential of financial institutions to continuously reduce costs and increase efficiency to feed back the real economy.

　　For a long time, domestic financial institutions have been accustomed to pursuing quantitative and scale development, and benchmarking and comparing with each other has become the norm.

With the narrowing of interest rate spreads of financial institutions, the decline of service fee income, and the reduction of burdens and profit-making trends, coupled with the increasingly complex financial risk incentives and forms, and the obvious increase of various uncertain, unstable and insecure factors, management innovation of financial institutions is crucial for continuous cost reduction. Efficiency enhancement has practical significance.

　　The first is to promote the transformation of profit methods, gradually change the pursuit of extensive growth in scale, and reduce capital consumption, debt costs and risk occupation.

As of the third quarter of this year, the revenue growth rate of listed banks has dropped.

Among them, interest income increased by 4.1% year-on-year (4.5% increase in the first half of the year), net fee and commission income decreased by 0.7% year-on-year (0.7% increase in the first half of the year), and investment income decreased by 0.8% year-on-year, revealing that the bank's burden reduction in the quarter The reality of financial and market fluctuations has also increased the sense of urgency of financial institutions' refined management.

It is necessary to make full use of structural monetary policy tools, focus on inclusive, green and low-carbon, and scientific and technological innovation to make precise efforts to realize price supplementation with quantity and seek common development; financial institutions must strengthen inter-industry cooperation and build interoperable financial platforms.

Among them, commercial banks should rely on channels, customers and information advantages, and through cooperation with other financial institutions, transform from fund providers to fund organizers. Asset securitization and investment-loan linkage provide more financing opportunities for enterprises, which not only reduces the capital consumption of banks, but also helps enterprises optimize their liability structure, reduces financing costs, and achieves win-win cooperation for multiple parties.

　　The second is to establish a comprehensive and complete risk control system, and lead and realize risk control to create value through sophisticated and effective means.

At present, the incentives of financial risks are complex and changeable, and preventing financial risks is the top priority of management.

In the third quarter of this year, the weighted average non-performing ratio of listed banks was 1.31%. The overall trend of asset quality was stable.

In addition, credit risk often lags behind, and there is a long way to go to manage and control risks.

Especially in the case of narrowing interest margins and slowing operating income, effective risk management and control can reduce risk costs and directly create value.

　　Drawing on the historical experience of previous economic downturns, with the increase of financial support for the real economy, many uncertainties will inevitably be brought. Raise the risk cost of financial institutions.

To this end, financial institutions must constantly evaluate the completeness, adaptability and agility of their own risk control systems.

In particular, it is necessary to improve the accuracy of risk measurement and the effectiveness of stress testing. It is necessary to make full use of financial technology to improve the effectiveness of the digital risk control system and reduce risk costs, so as to ensure the effective improvement of quality and reasonable growth of quantity in its own development. Above all, feed back the real economy with greater profit margins.