Economic Observer reporter Jiang XinOn December 27, 2023, the Economic Observer, Jingguan Media, together with the China Association of Listed Companies and Shanghai Institute of Finance, held a forum on the practice and development of Chinese-style modernization in Beijing.
At the forum, Wu Xiaoqiu, former vice president of Chinese min University and dean of the National Institute of Financial Research, shared the theme of "The Path to the Construction of a Financial Power".
The first financial work conference held in October 2023 put forward for the first time the grand goal of building China from a financial power to a financial power. In Wu Xiaoqiu's view, the goal of building a financial power provides a direction for the future reform and development of China's finance, and what needs to be thought about now is how to understand the financial power, how to achieve the financial power, and explore the achievable path to achieve this goal.
Wu Xiaoqiu said that the construction of a financial power is based on the country's comprehensive capabilities, and is built on the soft power of economic innovation, sustainable growth, perfect rule of law and a high degree of contract spirit.
Wu Xiaoqiu believes that the characteristics and connotations of financial powers can be understood from three perspectives: First, the financial system of financial powers is highly market-oriented, and its financial functions are diverse, which can meet the diversified financial needs of the real economy and residents and investorsSecond, financial powers must have a sound rule of law (basic environment) and transparent regulation on the basis of a high degree of contractual spirit. The cornerstone and core of modern finance is the capital market, and the value of the capital market should be understood from a strategic perspective.
Thirdly, the construction of a financial power requires that finance be internationalized and (externally) opened, which is mainly reflected in two aspects as far as China is concerned: the liberalization and internationalization of the renminbi, and the further improvement of the openness of the capital market.
Wu Xiaoqiu believes that in the process of realizing the construction of a financial power, a correct understanding of a financial power is the key, internationalization and openness are the difficulties, and the rule of law is the fulcrum and cornerstone.
Wu Xiaoqiu said that building China's capital market into an important global trading center is an important embodiment of achieving the goal of becoming a financial power and enhancing the openness of the financial market, which means that the market is a trading center with RMB as the denominated asset, and RMB assets should become an important global wealth reserve tool. This requires a better understanding of the strategic value of the capital market in building a financial power, and giving full play to its pivotal function, which has a strong radiation force, rather than a single financing function.
Wu Xiaoqiu said: "The focus of achieving a financial power is in the capital market, which is not only an important channel for market-oriented financing, but also an important platform for social wealth management, an important carrier of internationalization, and a closed-loop mechanism and repatriation mechanism for RMB liberalization and internationalization. ”
In Wu Xiaoqiu's view, a complete and systematic understanding of the connotation and requirements of modern finance and financial power also requires a strategic vision. Although in the past 33 years, the capital market has made great progress in system construction, the number of listed companies, structural transformation, and the issuance system, but measured by the goal of becoming a financial power, there is still a big gap between the development of today's capital market and this goal. At present, the society's attention to the capital market has exceeded that of other fields, and it is necessary to realize that there are still some problems in the capital market.
Wu Xiaoqiu said that in the past six months, the relevant state departments and regulatory departments have made a series of policy adjustments in order to stabilize the market, stabilize expectations and stabilize confidence, and strictly investigate violations, but the market has not fully reflected it. There may be a greater force behind this than policy adjustment affecting the market, and we study what kind of force this is, and it is very important to stabilize confidence and make investors feel safe, which is closely related to the improvement of the rule of law. In Wu Xiaoqiu's view, the power of the system is more important than the policy, and the system has a great role in stabilizing expectations.
For the recent market performance, Wu Xiaoqiu said that the market is still in the first trend, I personally think that this trend will not be too long, we should have confidence in the Chinese market, the premise of confidence is to carry out major institutional reforms, institutionalize policies, and give the market long-term stable expectations.
When talking about specific policy changes, Wu Xiaoqiu suggested that the recently introduced policy agreement should be clearly defined as a system, which should be implemented for a long time in the future, and even give new connotations to the rules and requirements of the first country, the three-year lock-in period is not enough, and sufficient conditions must be added to complete the profit creation and wealth creation that are compatible with the scale of financing, and there must be corresponding dividends, so that the actual controller and shareholders can be the first to do so.