The Central Financial Work Conference emphasized the need to focus on building modern financial institutions and market systems to unblock the channels for funds to enter the real economy. Strengthen market rules and create a financial market with unified rules and coordinated supervision.In recent years, the Chinese peoplebankTogether with relevant departments, we must deeply grasp the political and people-oriented nature of financial work, unswervingly promote the high-quality development of China’s financial market, enhance the financial market’s ability to serve the real economy, improve the financial market system, prevent and resolve risks, steadily expand institutional opening, and provide Provide strong support for comprehensively promoting the great rejuvenation of the Chinese nation with Chinese-style modernization.
1. Adhere to serving the real economy as the fundamental purpose and better utilize the functions of the financial market
Steadily expand the scale of financing in the financial market and optimize the financing structure.At the end of September 2023, my country’s bond balance was approximately 154 trillion yuan, ranking second in the world.Among them, the balance of government bonds is 66.2 trillion yuan, with an average annual growth rate of 15.8%, providing strong support for the implementation of proactive fiscal policies and stabilizing economic growth; the balance of financial bonds is 37.2 trillion yuan, which is a policy-relatedbankIt is the main source of external supplementary capital from liabilities and financial institutions; the balance of corporate credit bonds is 32.4 trillion yuan, with an average annual growth rate of 12.7%, making it the second largest financing channel for the real economy after credit. From January to September 2023, net bond financing accounted for 25.9% of the increase in social financing, an increase of 3.8 percentage points from the same period in 2017, driving the proportion of direct financing to social financing to 28.2%.
Optimize the capital supply structure and guide more financial market resources to promote technological innovation, advanced manufacturing, green development and small, medium and micro enterprises.Continuously enrich the spectrum of corporate credit bonds, launch green, mass entrepreneurship,rural revitalizationand other special corporate credit bonds, innovate bond financing support tools for private enterprises, expand direct financing channels for enterprises, and help accelerate the cultivation of new drivers of economic growth and new advantages. Standardize and innovate supply chain bills, standardized bills and other products to promote a stable circulation of the industrial chain and supply chain. Promote bond market infrastructure and reduce private enterprise bond-related fees by 582 billion yuan, effectively reducing the financing costs of private enterprises.
Revitalize the resources of financial institutions and enhance their ability to support the real economy.support policybankEstablish a special fund for infrastructure and participate in “One Belt, One Road“Construct and implement major national projects, etc., and effectively play the countercyclical adjustment role of policy finance. Use perpetual bonds as a breakthrough to promote banks to replenish capital through multiple channels. As of the end of September 2023, the balance of various types of capital supplement bonds of commercial banks was 6 trillion Yuan, increased the overall capital adequacy ratio of commercial banks by about 3 percentage points, and enhanced the capital strength and credit extension capabilities of commercial banks. Special financial bonds for small and micro enterprises, “agriculture, rural areas and farmers”, green, and mass entrepreneurship and innovation were launched to guide financial resources to inclusive Focus on finance, green development, technological innovation and other fields.
Meet the financial needs of the market and the general public for asset allocation and risk management.Accelerate the optimization of the business environment, strengthen investor capacity building and suitability management, and improve intermediary services such as underwriting, brokerage, and market making. Promote the steady expansion of over-the-counter bonds of financial institutions, provide convenient bond investment channels for enterprises, individuals, and small and medium-sized institutional investors, and enhance the inclusiveness of the bond market. We have enriched the types of derivative products in the inter-bank market, launched LPR interest rate swaps, LPR interest rate options and other products, and continuously improved the transaction clearing arrangements in the derivatives market. In 2022, the nominal principal volume of derivatives transactions such as RMB interest rate swaps and standard bond forwards in the inter-bank market will be approximately 21.3 trillion yuan, an increase of nearly 50% compared with 2017. The gold market provides physical gold trading, delivery, clearing, warehousing, custody and other services, and innovates gold accumulation, gold leasing, gold ETF and other products to meet the production and risk hedging needs of gold-producing and gold-using enterprises.
2. Adhere to the bottom-line thinking of preventing risks and create a financial market with unified rules and coordinated supervision
Strengthen market rules and standardize financial market issuance and trading activities.Work with relevant departments to strengthen overall planning and regulatory coordination for the development of the bond market, and in accordance with the principle of classification convergence, achieve the unification of basic institutional rules such as corporate credit bond information disclosure, default disposal and credit rating, and improve market transparency and risk disclosure capabilities. Strengthen the supervision and regulation of secondary transactions in the bond market and improve market liquidity. Strengthen the construction of the money market system, establish a management framework with liquidity management capabilities as the core, and improve the management rules for inter-bank lending, bond repurchases, and bond lending businesses. Establish and improve the credit management framework and information disclosure mechanism of the bill market, and strengthen the behavioral norms of participants. Promote the standardized development of gold market business and improve the management regulations for gold accumulation, gold asset management, gold leasing, Internet gold and other businesses.
“Zero tolerance” for violations of laws and regulations to prevent risk transmission and resonance.Implement the requirements of the Party Central Committee on improving the legal system of the bond market and establish a unified law enforcement mechanism for the bond market in conjunction with relevant departments. We will promptly and decisively punish cases of violations, and at the same time increase self-disciplinary sanctions to effectively protect the legitimate rights and interests of investors and consolidate the credit foundation of the bond market. Strengthen the prevention and control of risks in the bill market, guide small and medium-sized banks to steadily reduce the scale of excessive acceptance business, and rectify the corporate bill trading business of Internet bill platforms.
Improve the default risk disposal mechanism on the track of marketization and rule of law.Work with relevant departments to promote the establishment of a bond default resolution framework that combines justice, administration, and self-discipline. Unblock judicial relief channels for bond defaults, build a toolbox that includes a variety of market-based default resolution methods, promote the orderly clearing of credit risks, and enhance market resilience and risk prevention and resolution capabilities. Work with relevant departments to establish a monitoring and early warning mechanism for state-owned enterprise bond defaults at the central and local levels to increase regulatory synergy and risk prevention and control targeting.
Improve the institutional framework for overall supervision of financial infrastructure and maintain the stable operation of the market.Implement the deployment of the Central Committee for Comprehensively Deepening Reforms and coordinate financial infrastructure supervision and construction planning. Work with relevant departments to actively promote the interconnection of bond market infrastructure and promote the free flow of market factors. Improve the quality and efficiency of financial infrastructure services in the inter-bank market, ensure the continued and stable operation of financial infrastructure, and provide a solid foundation for effectively responding to external risk shocks.
3. Adhere to the overall coordination of openness and security, and strive to promote high-level opening up of the financial market.
Attract more foreign financial institutions and long-term capital to enter my country’s financial market.Since 2017, the scope of foreign investors in the bond market has expanded from overseas central bank institutions, overseas RMB clearing banks and participating banks to medium and long-term investors such as overseas licensed financial institutions and pension funds. Panda bond issuance entities have expanded to foreign government institutions, international development institutions, overseas financial institutions and non-financial enterprises, with the cumulative issuance volume of approximately 750 billion yuan, an increase of 240% from the end of 2017. The number of international members of the gold market international board reached 103, and the cumulative transaction scale was 24.6 trillion yuan, 6.8 times that of the end of 2017.
Connect the financial markets of the mainland and Hong Kong to consolidate and enhance Hong Kong’s status as an international financial center.In July 2017, the “Northbound Trading” of Bond Connect was successfully opened, adopting internationally accepted practices such as multi-level custody and connecting the two places through the infrastructure system, providing convenience for overseas institutions to achieve “one-point access” to the mainland bond market through Hong Kong. At the same time, supervision and risk prevention are effectively strengthened through a series of arrangements such as access filing, centralized trading, and penetrating information collection. In September 2021, “Southbound Link” was also successfully launched. In May 2023, “Swap Connect” will be launched to facilitate foreign investors to participate in the domestic financial derivatives market.
Steadily expand institutional opening up and improve cross-border investment and financing facilitation.We will continue to conduct extensive research on overseas investors, actively respond to the reasonable demands of the market, promote the integration of various rules and systems such as bond market issuance and transaction, registration and settlement, rating, taxation, etc. with international standards, and continuously improve the investment convenience for overseas investors. Work with relevant departments to establish a unified bond market opening framework, coordinate and promote the unified opening of the inter-bank and exchange bond markets, unify and improve policy requirements for foreign institutions to invest in my country’s bond market, and formulate rules for various types of foreign entities to issue panda bonds domestically.
The international influence and competitiveness of the financial market have increased significantly.Since 2019, Chinese bonds have been included in BloombergBarclays,JPMorgan,FTSE RussellThe three major international bond indexes fully reflect the confidence of global institutional investors in the long-term and healthy development of China’s economy, the continued expansion of financial opening up, and the holding of RMB assets.
In the next stage, the People’s Bank of China will conscientiously implement the spirit of the Central Financial Work Conference, accelerate the construction of a modern financial market system with Chinese characteristics, promote the high-quality development of China’s financial market, and help accelerate the construction of a financial power.
One isAdhere to the people-centered value orientation, continue to clear the channels for financial market funds to enter the real economy, further optimize the financing structure and capital supply structure, and effectively strengthen the function of the financial market in serving major strategies, key areas and weak links.
two isFocusing on comprehensively strengthening supervision and preventing and defusing risks, we will further improve the financial market system, strengthen the construction of the rule of law and infrastructure system in the financial market, reasonably guide expectations, firmly adhere to the bottom line of no systemic financial risks, and ensure the stable operation of the financial market. convoy.
The third isUnder the principle of ensuring national financial and economic security, we will steadily expand institutional opening up of financial market rules, regulations, management, standards, etc., adhere to both “bringing in” and “going out”, and continuously improve the level of cross-border investment and financing facilitation to provide Injection of high-quality development into financial marketsnew momentumadd new vitality.
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(Source of article: Central Bank website)
Source of article: Central Bank website
Author of the article: Department of Financial Markets
Original title:[Column article]Promoting high-quality development of China’s financial market to help accelerate the construction of a financial power
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