Capital, an important factor of production, has entered the "classroom" of China's top executives.

　　On the afternoon of April 29, the Political Bureau of the CPC Central Committee conducted the thirty-eighth collective study on regulating and guiding the healthy development of my country's capital in accordance with the law. It also mentioned setting up "traffic lights" for capital again.

　　Since the Central Economic Work Conference in 2021 first mentioned setting up "traffic lights" for capital, and observing the official policy documents and implementation practices, it can be seen that this move is to allow capital to "drive correctly", avoid "driving into the wrong zone", and reduce The risk of "traffic accidents" can also create a more orderly and healthy capital development ecology.

How dangerous is the disorderly expansion of capital?

　　It is necessary to understand and grasp capital and its functions historically, developing and dialectically.

It must be noted that the achievements of China's reform and opening up over the past 40 years are inseparable from the contribution of capital, which has played an irreplaceable role in China's economic development, providing momentum for the development of various market entities, and also contributing to macroeconomic growth and economic growth. Contributing to building a moderately prosperous society in an all-round way will also become the fresh "blood" of building a modern economic system in the future.

　　This collective study mentioned that under the socialist market economy system, capital is an important link to drive the agglomeration and allocation of various production factors, and an important force to promote the development of social productive forces.

　　However, capital is like a "double-edged sword", which has "creativity" in its contribution to economic and social development, and at the same time, it must be wary of its "lethality" in pursuit of higher profits.

　　For the market ecological environment, improper accumulation and concentration of capital will lead to monopoly and unfair competition, which will have negative effects on the vitality of market competition and innovation.

Enterprises adhering to the "law of the jungle" may tend to take advantage of capital to rapidly expand through unfair competition means such as brutal acquisitions and "burning money", undermining fair competition and easily creating a "dominant" situation.

　　For ordinary consumers, if capital expands unrestrictedly, it may overtake the market. Big banks use the "winner takes all" trick. Once they successfully build an ecosystem that is beneficial to themselves, discriminatory pricing and selection Restrictions, etc. already have operational conditions, and it does not rule out that capital owners infringe on consumer rights for their own interests.

　　In terms of the quality of economic development, some capitals that are more interested in high profits and quick money tend to avoid manufacturing industries that require "patient" and long-term thinking, and instead flood into areas that are easy to achieve some form of policy arbitrage and speculation. This can easily accelerate the economic transition from the real to the virtual, erode the real economy, and increase the systemic risks of economic operation.

　　In terms of safeguarding national security, the intensified global competition and cross-border two-way flow of capital will increase industrial, data and macroeconomic security risks.

For some capital entering key lifeline industries and emerging strategic industries, a higher-level "safety valve" must be added to install "insurance" for national security.

What changes can "traffic lights" bring?

　　The way to control water should be sparse and not blocked.

How to "sparse"?

In the process of building embankments and dams, it should be guided rationally to change "water hazards" into "water conservancy".

　　Capital is like water, and it cannot be allowed to run its course under the drive of profit-seeking. Setting "traffic lights" is the key to dredging.

　　The socialist market economy is essentially an economy under the rule of law, which must be guided by the protection of property rights, the maintenance of contracts, a unified market, equal exchange, fair competition, and effective supervision. Capital activities must also be carried out in accordance with the law.

Setting "traffic lights" for capital is to guide capital to be active and promising under the institutional framework of laws and regulations, so that capital can recognize the boundaries and choose the right track to start.

　　The red light is to set up "restricted areas" and "restricted areas" by category in the form of a negative list to strictly prevent capital from impacting political and social order.

　　The green light is to serve the national development strategy and the field of full market competition, encourage the entry and development of capital, improve the quality of development through fair competition, create a good market environment, stimulate the vitality of various market players, and support and guide capital to help the economy become stable, healthy and sustainable. continuous development.

　　In this study, it is proposed to set up "traffic lights", improve the legal system of capital development, and form a rule system with a complete framework, clear logic and complete system.

　　It needs to be understood that the establishment of "traffic lights" is to make the rules clear and the expectations stable, to guide and encourage capital to show their strengths on the premise of compliance, which not only ensures economic and social security, but also allows capital to promote scientific and technological progress in an orderly and fair competition. Prosper the market economy, facilitate people's lives, and improve international competitiveness.

Taking multiple measures to form a healthy ecology

　　At present, China is comprehensively deepening reforms, constantly emphasizing that the market should play a decisive role in resource allocation, the government should play a better role, and create a more favorable market environment and legal environment for the development of various types of capital.

　　It should be noted that from the reform and opening up to the present, capital, together with production factors such as land, labor, technology, and data, have jointly contributed to the prosperity and development of the socialist market economy. However, the disorderly expansion of capital has also led to market monopoly and damage to consumption. issues that need to be addressed urgently, such as the interests of individuals and the destruction of the common interests of society.

　　It is imperative to build a healthy capital ecology, and there are many "prescriptions" besides "traffic lights".

For example, it is necessary to improve the division of labor and cooperation mechanism for industry governance and comprehensive governance, and strengthen the coordination and linkage of industry supervision and comprehensive supervision such as financial supervision, foreign investment supervision, competition supervision, and safety supervision.

It is necessary to accurately grasp the key areas and key objects that may bring systemic risks, enhance the predictability and agility of governance, and discover and resolve risks early.

　　Another example is to continue to improve the basic system of China's capital market, better play the functions of the capital market, and release more space for the development of various types of capital.

It is necessary to improve the property rights protection system, further promote the implementation of the fair competition policy, fully implement the fair competition review system, eliminate various market barriers, and enable all types of capital to have equal opportunities, fair access, and orderly competition.

We must always adhere to the "two unswerving", and further stimulate the vitality and creativity of private capital.

　　(Xia Bin)