On June 6, the 9th Lujiazui Forum was held in Shanghai. People's Bank of China Governor Yi Gang, Director of the State Financial Regulatory Administration Li Yunze, and Chairman of the China Securities Regulatory Commission Yi Huiman appeared on the same stage at the forum.

The 8th Lujiazui Forum opened in Shanghai on the <>th. Photo by Kang Yuzhan

Yi Gang: Achieving the "dual carbon" goal requires "carrots and sticks"

In September 2020, China clearly stated that carbon dioxide emissions should peak before 9 and strive to achieve carbon neutrality before 2030.

Yi Gang said that after the central government made the 30/60 deployment, the People's Bank of China resolutely put green finance in a prominent position, focusing on three aspects, including strengthening environmental information disclosure, improving policy incentive and constraint systems, and carrying out climate risk stress tests.

Yi Gang said that achieving the 30/60 goal requires "carrots and sticks". A significant increase in carbon emission costs can be understood as a "big stick", a moderate increase is a "medium stick" or a "small stick", and the support tool set up by the People's Bank of China is a "carrot" in the incentive mechanism.

In 2021, the People's Bank of China set up two monetary policy tools, the carbon emission reduction support tool and the special re-lending to support the clean and efficient use of coal, to support the development of key areas of carbon emission reduction. For carbon emission reduction loans issued by financial institutions to key areas of carbon emission reduction, the People's Bank of China will provide relending funds for a certain period of time at 60% of the loan principal, with an interest rate of 1.75%, which is accurate and direct to green and low-carbon projects.

Yi Gang stressed that the "carrot" incentive mechanism of the People's Bank of China to recoup the reloans provided to financial institutions when due, and financial institutions to issue carbon emission reduction loans to enterprises at their own risk, is moderate and market-oriented. At the same time, financial institutions receiving financial support from the People's Bank of China undertake to disclose information such as the balance, interest rate and corresponding carbon emission reduction effects of carbon emission reduction loans, and accept verification and social supervision by third-party independent institutions. As of the end of April 2023, the balance of carbon emission reduction support tools was nearly 4 billion yuan, and about 4000 billion yuan of loans were issued by financial institutions, driving carbon emission reduction to more than 6700 million tons, achieving relatively good results.

Li Yunze: Truly achieve "full coverage, no exceptions" in supervision

Li Yunze mentioned in his speech that he adheres to the "two unwavering", optimizes the private investment and financing environment, strengthens the financial services of private enterprises, and protects the passion for the entrepreneurial development of private enterprises. Vigorously develop inclusive finance to help market entities increase confidence and vitality.

Li Yunze said that the economy is the body, finance is the bloodline, and the two live together and prosper. The State Financial Regulatory Administration will grasp the key of restoring and expanding effective demand, and continue to optimize and improve financial services. Increase financial support for new consumption and service consumption, and promote bulk consumption such as new energy vehicles and green home appliances. Strengthen the financing guarantee for investment, and support the construction of major projects such as the transformation of urban villages in megacities and the construction of "dual-use" public infrastructure.

Li Yunze also said that the State Financial Regulatory Administration will focus on the whole process of China's modernization, comprehensively strengthen institutional supervision, behavioral supervision, functional supervision, penetrating supervision and continuous supervision, and effectively improve the forward-looking, accurate, effective and coordinated nature of supervision. Resolutely eliminate regulatory gaps and blind spots, clarify responsibility boundaries, tighten the responsibility chain, strengthen comprehensive governance, improve the responsibility system with multi-subject participation, multi-field collaboration, and multi-level penetration, and truly achieve "full coverage and no exceptions" in supervision.

Yi Huiman: We will continue to strengthen the monitoring and supervision of market trading behavior

Recently, stock market volatility has increased, the rotation of hot sectors has accelerated, and discussions on quantitative trading, market fairness, short-term speculation of funds, and the responsibility of industry institutions have increased. Yi Huiman responded that the CSRC attaches great importance to capital market supervision, will continue to strengthen the monitoring and supervision of market trading behavior, do a good job in tracking and analyzing new trading methods such as quantitative trading, resolutely crack down on insider trading, market manipulation and other violations of laws and regulations, and effectively maintain a benign and healthy market order and ecology.

Yi Huiman said that he will continue to vigorously develop equity funds, promote the "total volume improvement and structural optimization" of the public fund industry, support the steady development of securities fund futures private asset management products, guide the standardized and healthy development of private securities investment funds, and further promote all kinds of medium and long-term funds to increase the allocation of equity assets. At the same time, we should strengthen horizontal coordination, improve supporting systems and mechanisms such as taxation and accounting, further open up pain points and blockages, and create a more favorable institutional environment for all kinds of institutional investors to enter the market. (End)