Financial Affairs Office of the CPC Central Committee: Policies should not be adjusted too hastily to prevent ups and downs | Lianhe Zaobao

The Office of the Central Financial Commission of the Communist Party of China and the Central Financial Working Committee issued an article in China’s official media “People’s Daily” on Thursday (April 25), saying that financial policies should not be tightened and released too hastily to prevent ups and downs.

The article said that to follow the path of financial development with Chinese characteristics, we must not only have the correct stance, ideas and strategies, but also have the correct strategies and methods. The general tone of the work of seeking progress while maintaining stability is an important principle of state governance and a methodology for doing good economic work. “If finance is active, the economy is active; if finance is stable, the economy is stable.” To do a good job in financial work, we must persist in seeking progress while maintaining stability.

The article pointed out that “stability” is the overall situation and foundation, and what should be stable must be stabilized. If finance does not go well, or even a financial crisis breaks out, economic development will inevitably suffer a severe setback. Financial work must adhere to the principle of stability, the general direction must be stable, principles and policies must be stable, strategic deployment must be stable, macro-control, financial development, financial reform, financial supervision, risk management, etc. must be stable, and financial policies must not be too tight or loose. emergency, prevent ups and downs, and firmly maintain the bottom line of preventing systemic financial risks.

“Advance” is the direction and motivation, and we must make progress if we should advance. Finance plays important functions such as media transactions, resource allocation, price discovery, and risk management. The financial system is an important basic system in economic and social development. Stability does not mean inaction, nor does it seek mechanical stability. It means constantly solving problems and moving forward while stabilizing the basic situation. It means being proactive in transforming methods, adjusting structures, improving quality and increasing efficiency, and firmly grasping the strategy of financial reform and development. Take the initiative to enhance development resilience and promote high-quality economic development with high-quality financial development.

“Stability” and “progress” are dialectically unified and need to be grasped as one. It is difficult to make progress without stability, but only with progress can there be stability. It is necessary to coordinate both stability and progress, seek progress with stability, and consolidate stability with progress. We should work hard while grasping the balance and timing, and properly handle the relationship between the local and the overall situation, the current and the long-term, and the key and non-key points. Respect the objective laws and realities of finance, and oppose impulsive and reckless behavior and eagerness for success, as well as passive responses and lack of enterprising spirit. Adhere to the principle of establishing first and then breaking. What should be established should be proactively established, and what should be broken should be broken resolutely on the basis of establishment. Use scientific and reasonable new mechanisms to create new momentum for financial development.

The article also said that to prevent risks, we must grasp the timeliness and effectiveness on the premise of stabilizing the overall situation. It is necessary to adhere to the policy of “stabilizing the overall situation, making overall plans and coordination, implementing classified policies, and accurately disposing of bombs”, and grasp the relationship between power and responsibility, speed and stability, prevention and destruction. The stock must be handled prudently, comprehensively, and appropriately, so as to avoid leaving behind problems and causing the risk of disposal risks. In order to promote stability and strictly prevent increases, we will effectively strengthen the control of risk sources. In accordance with the “four mornings” principle, draw inferences from one example and draw inferences from other cases to tighten the system “fence” as soon as possible. We must not allow small things to make things bigger or big things to explode.

Strengthening supervision must be based on the premise of improving the system, using force, and using force and sword. Financial supervision is a key institutional design for preventing and controlling financial risks, managing financial chaos, and standardizing financial order. It is necessary to speed up filling the gaps in the regulatory system, strengthen regulatory coordination, implement all-inclusive regulatory responsibilities, and achieve full coverage of financial regulation. Comprehensively strengthen the “five major supervision” and resolutely reverse the long-standing disadvantages of focusing on development, weak supervision, and spreading risks and covering up the situation. Supervision and supervision of supervision must be “thorny” and resolutely use the sword when problems are discovered. We must properly handle the relationship between strengthening financial supervision and financial innovation. Financial innovation must be carried out, but we must not innovate randomly or engage in “innovation” that deviates from the needs of the real economy and circumvents supervision. It is necessary to strengthen the risk assessment of financial innovation, and if it does not work, we must not do it.

The article concludes by saying that to promote development, we must promote stable growth, adjust structure, and improve quality and efficiency while adhering to the fundamentals. Serving the real economy is the bounden duty of finance. If finance is keen on self-circulation and self-expansion, it will become water without a source and a tree without roots. We must focus on the implementation of prudent monetary policies, strengthen policy coordination, support stable expectations, stable growth, and stable employment, and create a favorable monetary and financial environment for economic and social development. Focus on completing the “five major articles”, coordinate the “addition and subtraction”, improve the efficiency of financial resource allocation, optimize the capital supply structure, and avoid idling of funds. Focusing on the construction of the “six pillars” of a modern financial system with Chinese characteristics, we will encourage all types of financial institutions to stick to their original aspirations, return to their roots, improve their main businesses, and excel in their professions, and avoid being ambitious, blindly crossing borders, and expanding disorderly.

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