(Economic Observation) For the efficient allocation of global resources, where is Pudong's financial opening up?
China News Agency, Beijing, July 16 (Xia Bin Cao Nianrun) How can Pudong, the pioneer of reform and opening up, continue to be a good pioneer?
The "Opinions of the Central Committee of the Communist Party of China and the State Council on Supporting the High-Level Reform and Opening-up of Pudong New Area to Build a Leading Area for Socialist Modernization" has been released, drawing up a new blueprint for Pudong’s reform and opening up for the next 30 years, proposing to enhance global resource allocation capabilities and build new services. Development pattern.
“The role of the financial market in the allocation of resources is unquestionable.” Zhao Xijun, co-dean of the China Capital Market Research Institute of Renmin University of China, told a reporter from China News Agency that a mature, developed, and efficient financial market can achieve effective resource allocation, which is important for economic development and economic development. The improvement of people's livelihood and social progress will have an important incentive effect.
As China's contribution to the world economy increases and its ties to the world economy become closer, China's development increasingly needs to make good use of global resources, and overseas funds "overweight" China's demand is gradually rising.
Tian Lihui, dean of the Institute of Financial Development of Nankai University, told a reporter from China News Agency that the allocation of global resources is fundamentally the allocation of capital.
The flow of capital and the accumulation of capital require an effective financial market and a sound infrastructure.
Shanghai is China's international financial center and the location of many financial trading platforms such as the Shanghai Stock Exchange. It has natural advantages.
Zhao Xijun said bluntly that the above-mentioned opinions are to allow Shanghai to upgrade its financial market construction to the same level and capability as an excellent international financial market.
In this way, where should Pudong's financial opening up take the "first step"?
One is to "go global" towards the renminbi.
The opinions put forward support for Pudong to take the lead in exploring the implementation path of capital account convertibility, as well as to build an offshore financial system that matches the Shanghai International Financial Center, and support Pudong to develop offshore RMB transactions under the premise of controllable risks.
Wang Yunfeng, President and Chief Executive Officer of HSBC Bank (China) Co., Ltd., said that these will be very positive and beneficial explorations and attempts, which will provide convenience, cost savings and further promotion for companies and institutions that wish to conduct offshore business in China. The circulation of the renminbi between the offshore and onshore markets will play an important role in promoting Shanghai's construction of a renminbi financial asset allocation and risk management center.
Wang Youxin, a senior researcher at the Bank of China Research Institute, reminded that in the context of further promoting the liberalization of RMB capital accounts, RMB and foreign exchange should be included in the cross-border capital flow management framework at the same time, and further improve the two integrated management framework of "macroprudence + micro regulation" and strengthen Monitor the flow of funds to ensure that opening up and risk prevention and control are promoted together.
Second, move towards widening the entry of foreign capital.
The opinions put forward support for the establishment of an international financial asset trading platform in Pudong, and on a pilot basis to allow qualified foreign institutional investors to use RMB to participate in the issuance and trading of shares on the Sci-tech Innovation Board.
Tian Lihui believes that the above-mentioned pilot measures are a major benefit to the Sci-tech Innovation Board.
This will not only bring in international funds to serve China's real economy, but it is also expected to promote value investment and improve the efficiency of the science and technology innovation board market.
Increasing the intensity of foreign capital investment in China by relaxing the investment channels of qualified foreign institutional investors is in line with the three important prerequisites of sufficient information, controllable capital, and in place supervision, and should be strongly encouraged.
Third, move towards the construction of facilities and systems.
Opinions proposed to build an international oil and gas trading and pricing center, support the Shanghai Petroleum and Natural Gas Trading Center to launch more trading varieties; build a trade finance blockchain standard system, and carry out legal digital currency pilot projects.
Wang Youxin stated that increasing the application scope of the RMB in the field of commodity pricing and gradually linking qualified commodity futures and options varieties with international standards will attract more foreign investors to participate in domestic commodity futures market transactions, risk management and asset allocation. Improve China's influence in the field of commodity pricing.
From a deeper perspective, he emphasized that a sound financial market system and a rich financial product system are conducive to the formation of a market price system and facilitate cross-border capital flows; a complete financial infrastructure can ensure efficient and safe transfer of funds across borders; Perfect accounting standards and corporate governance systems can ensure the efficiency of resource allocation; a sound legal system and financial supervision system can ensure stable and orderly operation of investment and financing activities.
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