Anticipation: the reform is the fundamental way to solve the current financial problems

November 23, 2012 sponsored by the municipal government of Chongqing the financial openness Forum held. The forum's theme is "financial reform and economic restructuring. The city leaders Anticipation, Ma is its Hu Jiankang, Zhang Ming, Wu Jianong, deputy governor of the People's Bank of China, Pan Gongsheng, vice chairman of the NPC Internal and Judicial Affairs Committee Gu Shengzu He Keng, vice chairman of the Financial and Economic Committee of the National People's Congress, and many of the financial sector experts and scholars , attended the forum to speak. Mayor Huang Qifan speak at the forum pointed out that the reform is the fundamental way to solve the current financial problems.
Anticipation that, more than a year, China's macro-control has made significant achievements, the inflation rate is declining, the price index in recent months in less than 2%, better control of inflation. But the People's Bank of China has cautioned that regulation of the largest of China's financial difficulty, the most concern is inflation, could not agree more. For my country, to prevent substantial inflation likely will be the ongoing problem of a longer cycle.
Anticipation that the amount of money in our country M2 (reflect an important indicator of the money supply) has more than 90 million yuan, while China's GDP is 47 trillion yuan last year, the proportion of M2 to GDP is about 1.8:1. Theoretically M2 can not exceed the GDP, the ratio of 1:1 between the two would be sufficient to promote the economic cycle, take the quantitative easing policy of the country like the United States, its M2 account for only about 80% of GDP, and we had more than 80 percent of the amount , like braving dammed lake, once the regulation is not good, a lot of currency rushed down will lead to inflation. In this regard, our country has been trying to strengthen financial regulation, on the one hand, is to raise the deposit reserve ratio of financial institutions, we are currently about 20%, while general deposit reserve rate of about 5% -10%, which is equivalent to building a dam, manage and lake. On the other hand, is the rigid control of the size of loans. It should be noted that the regulation of the working methods of curbing inflation, but if the basic institutional arrangements, the regulation also avail. Even if the regulation is correct guiding ideology, the system will be kidnapped. Speak in the end, this is a systemic problem in our financial.
Anticipation that the financial system is now banking sector a dominant indirect financial intermediation is almost more than 90%, the weak development of non-bank financial institutions. The banking sector a dominant cause of its monopoly position, resulting in the loan companies often have to make compromises in order to accept the bank put forward some unreasonable demands. Meanwhile, as an independent large so that it comes a little bit easier, effective and caused the bank's intermediary business objective, the Bank income structure is not reasonable. Bank profits depends mainly on the deposit and lending interest income difference, and this accounts for almost 80% of the bank's revenue, intermediary business revenue accounts for only 20%, while in Europe and the United States generally account for 50-70%. In the same time, our bank loan structure, quality of service, there are some problems. It is also because the banking sector is a dominant adversely affect other aspects of China's financial system. For example, long-term securities companies "is not long, brokerage assets expansion; difficult loans to SMEs; rural financial development has been relatively weak. These are our current financial system, Forced such a system, the financial system had to rely on each year currency issuance to promote economic development. To solve this problem, only one way is to reform.
Anticipation that promote financial reform, is necessary to the development and growth of the capital market, so that it truly reflects the trend of the development of the national economy. The first thing to do to the people-oriented capital markets to investors centered only rationalize the relationship between investors, financial managers, and a steady stream of financing before we will promote the orderly development of the capital market as a whole. At the same time, do a good job in the capital market also need to broker brokerage business IPO business, develop innovative business on the basis of proprietary business three constantly read, and strive to become a comprehensive, versatile financial institutions like the international investment bank.
Should vigorously develop non-bank financial institutions, such as small loan companies, security companies, trust companies, finance companies, private equity funds, venture capital funds, financial leasing companies, auto finance companies, and so on. The size of loans of non-bank financial institutions should strive to reach 50% of the bank credit. The same time, the securities market financing scale development to about 50% of bank credit, which superimposed direct and indirect finance the formation of a 1:1 relationship, each accounted for 50% of financial intermediation. The introduction of the new field of China's financial policy, enliven around the non-bank financial institutions is very instructive. In recent years, Chongqing in the development of non-bank financial institutions made ​​some Reform and achieved significant results. Currently, the capital of the various types of non-bank financial institutions to reach more than 700 billion yuan, the amount of financing the formation of a year to reach 200 billion yuan in Chongqing the financial intermediation incremental system, non-bank financial institutions intermediation and commercial banks the intermediation amount or less. We believe that, as long as the local government financial sector policies in full and good, and will promote the good development of the local economy.
Third, we should vigorously develop rural finance. A small proportion of the rural financial Chongqing 2010 Chongqing farmers the money directly to the bank by more than 30 billion, accounted for only 0.2% of the city's loan balance, the recent years, according to the CBRC support the "three rural "policy has taken a number of policies and measures to reform the exploration, and the end of September this year, the the Chongqing Rural loan balance reaches 30 billion yuan, up nearly 10 times, accounting for about 2% of the loan balance the city.
In short, the reform is the fundamental way to solve our financial problems, whether it is to promote the healthy development of the banking system, or the promotion of capital markets, non-bank financial institutions, rural financial development and growth, we need the guidance of the scientific concept of development, emancipate the mind, and vigorously promote reform efforts to adjust the institutional mechanisms brains, both vibrant and Compliance sound operation of the entire financial system.