Take china's special financial development path and build a financial power
Xi jinping
Since the 18th anniversary of the party, we have actively explored the patterns of financial development in the new era. We have been deepening our understanding of the nature of china's socialist finance. We have continued to promote innovation in financial practices, theoretical innovation and institutional innovation. We have accumulated valuable experience and gradually moved beyond a path of chinese financial development。
The central financial work conference was held in beijing from 30 to 31 october 2023. The general secretary of the ccp, the president of the state and the president of the central military commission, xi jinping, attended and made important statements. Xinhua news agency, reporter
First, the central leadership of the party in financial matters should be centralized. The leadership of the party is the essence of china's special financial development path and the greatest political and institutional advantage of our financial development. The major achievements of our financial development have always been achieved under the leadership of the party. Many of the problems that have arisen in the financial system are rooted in the weak implementation of party central decision-making by many in the financial sector, the weakening of party leadership, the weak political construction of the party and the weakness of party integrity. It is therefore important to maintain a central and unified leadership of the party in the financial sector and to play the central role of the party's overall leadership and coordination to ensure that the financial sector remains on track。
Secondly, the people-centred orientation of values should be upheld. In the final analysis, the financial business led by our party will benefit the people, in contrast to the very nature of some countries' financial services that serve capital and a few rich people. In the new era, financial work needs to take a firm people's stand, enhance the diversity, inclusiveness and accessibility of services and better protect the interests of financial consumers。
Thirdly, the financial services real economy has been maintained as a fundamental purpose. The real economy is the foundation of finance, which is the backbone of the real economy, and the service economy is its natural function. If it is self-circumulation and self-inflation, finance becomes a waterless, woodless wood, and sooner or later a crisis. It is imperative that our finances keep the economic fundamentals of the service sector and promote high-quality development, and that they remain true。
Fourthly, risk prevention and control should be the permanent theme of financial work. Finance has both a function of managing and dispersing risks and a self-risking gene. The volume and complexity of our finances are not the same today, and the systemic relevance of risk has increased considerably. There was a need to raise awareness of the need for risk management and to strengthen the resilience of the financial system。
Fifth, to insist on advancing financial innovation on the path of marketization and rule of law. Financial security depends on institutions, dynamism in markets and order on the rule of law. Financial transactions involve a complex and diverse set of rights and obligations, are characterized by asymmetric information, require very high levels of credit and require sound regulatory systems. A well-established system of financial law and market rules must be put in place so as to put an end to impunity and ensure the sound functioning of financial markets。
Sixth, to insist on deepening structural reforms on the financial supply side. The main features and advantages of our financial system are the dominance of state-owned financial institutions, but there are problems such as the high share of indirect financing and creditor financing, inadequate inclusion of financial services, financial penetration, financial disruption and a large number of illegal financial activities. To address these issues, it is necessary to deepen the structural reform of the financial supply side, rationalize the relationship between indirect financing and direct financing, equity financing and creditor financing, optimize the structure of the financial system, improve the financial infrastructure and improve the quality and efficiency of financial services。
Seventh, to maintain an integrated approach to financial openness and security. Financial openness must ensure the financial and economic security of the country, both against the risks inherent in openness and against the risks deliberately posed by the players. The pace and intensity of openness need to be harnessed and financial regulatory capacity improved to ensure higher levels of financial openness with higher levels of risk prevention and control。
Eighth, stick to the overall tone of the drive. Financial efforts need to be steady, steady, forward, forward and back. Macroeconomic regulation, financial development, financial reform, financial regulation, risk management, etc. Need to be stable, and financial policies cannot be collected and released in such a way as to prevent major setbacks. At the same time, it is important to move forward and to build on that position in order to continue to resolve problems and move forward in a stable and stable manner. The soundness of monetary policy and the flexibility to use a variety of policy instruments to promote sound and stable macroeconomic development should be upheld。
These articles clarify how the new era of finance is viewed and done, and are an integral part of the basic position, perspective and methodology that characterizes china's unique path to financial development. China's special financial development path follows the objective pattern of modern financial development and is more tailored to the country's circumstances. It is fundamentally different from the western financial model. We need to be confident and continue to explore and refine in practice so that the road can be wider。
I set out the goal of accelerating the building of a financial power at the central financial work conference. What is a financial power? It should be based on a strong economic base, with economic power, scientific power and combined national power ahead of the world, along with a set of key core financial elements. One is a strong currency, widely used in international trade investment and foreign exchange markets, with global reserve currency status. Second is a strong central bank with the capacity to manage monetary policy and macroprudential management and to protect against systemic risks in a timely and effective manner. Third is strong financial institutions, efficient operations, strong risk resistance, comprehensiveness, global layout and international competitiveness. Fourth is the existence of a strong international financial centre capable of attracting global investors and influencing international pricing systems. Fifth is strong financial regulation, sound financial rule of law and strong voice and influence in international financial rule-making. Six is a strong financial talent. Although my country is already a large financial country, with the world having the highest indicators of bank size, foreign exchange reserves, and the second largest in the world of debt and stock markets, as well as the highest of insurance coverage, it is generally small and weak. Building financial power requires long-term efforts and long-term success。
On 16 january 2024, a seminar was held at the central party school (the national school of administration) on the theme of the promotion of financial quality by leading officials at the departmental level. The secretary-general of the central committee of the chinese communist party, the president of the state and the president of the central military commission, xi jinping, made important statements at the opening session. The opening ceremony was attended by zhao luthor, wang juning, cai chi, ting xue xian, li xi and han. Xinhua news agency journalist shin hong/sun
The construction of a financial power must speed up the construction of a modern chinese financial system。
One is a scientifically sound financial regulatory system. It is necessary to build a modern central banking system, improve the modern monetary policy framework that characterizes china, improve the mechanisms for regulating the distribution and supply of basic currencies, function well in terms of the volume and structure of monetary and credit policy instruments, and effectively preserve the value of the renminbi and economic and financial stability。
Second is a well-structured financial market system. Building safe, regulated, transparent, open, dynamic and resilient capital markets needs to be accelerated. Develop multi-level equity markets, improve the quality of listed companies and deepen the mechanisms for normalization of de-marketing. Good entrepreneurial investment, private equity investment in support of science, technology and innovation, and enhanced bond, currency and foreign exchange market functions。
The third is a system of financial institutions that collaborate in a division of labour. The financial institutions of our country are all diverse, and the key is to develop at a different level, to complement each other's strengths, and to divide their positions and their respective directors economically in the service entities. Financial institutions of all kinds need to be committed to their originality and return to their sources of origin, effectively enhancing competitiveness and service capacity, and meeting the demand for diversified financial services at multiple levels of the real economy and the population。
Fourth is an adequate and effective financial regulatory system. To strengthen financial regulation in a comprehensive manner, by strengthening institutional regulation, behavioural regulation, functional regulation, penetrating regulation and continuous regulation, with full regulatory coverage, with a view to making it more proactive, accurate, synergistic and effective, and building financial safety nets。
Fifth is a diversified and professional system of financial goods and services. Strengthening quality financial services for key strategies, priority areas, weaknesses, science and technology finance, green finance, inclusive finance, old-age finance, digital finance, and accelerating financial digital and intellectual transformation。
Sixth is an autonomous, secure and efficient financial infrastructure system. Strengthen integrated planning, improve market access, regulatory standards and operational requirements, improve the level of autonomy of key financial infrastructure and the safety of software and hardware。
The promotion of high-quality financial development and the building of financial power must be combined with the rule of law and the rule of law. China's traditional culture of excellence should be promoted and china's culture of finance should be actively fostered。
- be honest and keep your word. China's excellent traditional culture emphasizes its commitment to the promise. The financial sector is credit-based and, above all, contractual, market rules and professional ethics. The tradition of “accounts, books, rules” is never followed. They insist on paying back their debts, cherishing their credibility and failing to do so. Industry self-regulation needs to be strengthened by a life-long ban on those who are seriously disbelieving。
The other is to profit, not to profit. China's excellent traditional culture emphasizes “the glory of the foreman and the humiliation of the foreman and the foreman”. Finance has the dual attributes of functionality and profitability, and profits are subject to functionality. The financial sector must fulfil its social responsibilities and achieve financial and economic, social and environmental co-benefits。
Three needs to be careful, not short-lived. China's excellent traditional culture emphasizes that “the speed is less and the profit less”. A number of international financial institutions can become centenarians, with the foundation industry growing young, and the most important secret is prudence. The financial sector needs to develop the right business, performance and risk perceptions and to operate prudently, looking now, in the longer term, with no short-term windfalls, no impatience, no excesses of affordability。
Four have to be positive and true. The key is to address the question of who good finance is for and why innovation is, to focus on better serving the real economy and to facilitate innovation for the people, not to pretend to be innovative。
Five must comply with the law and do nothing. Financial operations are particularly legally compliant. Financial institutions and practitioners must comply strictly with the law, comply with the requirements of financial regulation and be aware that they operate legally within the limits of regulatory authorization, that they cannot profit from rules and regulations, that they circumvent regulations, and that they are less able to hit red lines, that is, the bottom lines, and that they are outside the law。
This is an excerpt of a speech delivered on 16 january 2024 by the secretary-general of xi at a seminar on the promotion of high-quality financial development at the departmental level。
