Click "Follow" to receive more exciting content
In November 2023, the global economy was in an unprecedented predicament. Russia's invasion of Ukraine has caused an energy shortage, soaring inflation and economic recession in the United States and Europe threaten global financial stability, and the repeated outbreaks of the new crown epidemic and the emergence of mutants have disrupted the global ** chain and consumer demand.
In such an environment, China, as the world's second largest economy, is facing huge challenges and pressures. Whether China's financial system can withstand external shocks, maintain internal balance, and support economic growth is a major issue related to China's future development.
The financial crisis in our country did not happen overnight, but has accumulated problems for many years. The scale of our country's debt has exceeded 300% of GDP, and the most dangerous of them is the debt of local authorities and real estate developers.
In order to stimulate economic growth, the relevant local departments have borrowed money to invest in infrastructure projects through various channels, but the rate of return on these projects is often lower than the cost of borrowing, resulting in debt that cannot be repaid, creating hidden debt.
In order to seize land resources, real estate developers have raised a large amount of money through banks and shadow banks, pushing up housing prices and land**, creating a real estate bubble. These debts and bubbles not only threaten financial stability, but also crowd out the development space of the real economy, leading to the idling of funds and the waste of resources.
In the face of the financial crisis, China's financial policy should be both prudent and flexible. Prudence is to guard against financial risks, maintain financial security, and maintain the appropriateness of monetary policy and the sustainability of fiscal policy. Specifically, China's financial policy includes the following aspects:
First, it is necessary to strengthen financial supervision and control to prevent the spread and contagion of financial risks. China has established a Financial Stability and Development Committee to coordinate the supervision of various financial institutions and markets, strengthen the debt management of relevant local departments and real estate developers, and improve the risk resilience and market discipline of financial institutions.
The second is to implement counter-cyclical adjustment and maintain a moderately loose monetary policy. China has lowered the reserve requirement ratio, released liquidity, lowered loan interest rates, lowered the financing costs of enterprises and individuals, increased credit supply, and expanded effective demand.
At the same time,China also pays attention to the precision and structure of monetary policyThrough targeted RRR cuts, re-lending, re-discounting and other tools, we will support small and medium-sized enterprises, private enterprises, green economy, scientific and technological innovation and other key areas and weak links.
Third, it is necessary to implement a proactive fiscal policy and maintain the sustainability of the fiscal policy. Our country has increasedThe scale of fiscal deficits and debts has been expanded, fiscal expenditures have been expanded, tax cuts and fee reductions have been increased, the efficiency of the use of fiscal funds has been improved, and the improvement of public services and social security has been promoted.
At the same time,China also pays attention to the quality and efficiency of fiscal policyBy optimizing the structure of fiscal expenditure, strengthening the performance management of fiscal funds, promoting the reform of the fiscal system and the tax system, and improving the transparency and binding force of fiscal policy.
To solve the financial crisis, we must not only deal with immediate difficulties, but also focus on long-term development. China's financial way out lies in transformation and opening up. The purpose of transformation is to adapt to the adjustment of the economic structure, promote the quality and efficiency of economic growth, and improve the innovation ability and competitiveness of the economy.
The purpose of opening up is to integrate into the international financial system, expand international financial cooperation, enhance the influence of international finance, and promote the reform of the international financial order. Specifically, China's financial transformation and opening up include the following aspects:
The first is to promote the structural reform of the financial supply side, optimize the allocation of financial resources, and improve the efficiency and quality of financial services. China will accelerate the development of multi-level capital markets, improve the bond market and the first-class market, promote the deepening and activity of the financial market, and enhance the function and resilience of the financial market.
The second is to promote the innovation and application of financial technologyUsing artificial intelligence, blockchain, cloud computing and other technologies to improve the intelligence and digitalization level of finance, expand the coverage and penetration rate of finance, enhance the security and convenience of finance, and meet the diversified and personalized needs of financial consumers.
The third is to promote the internationalization and cross-border use of RMBIt is necessary to expand the scope of settlement and investment of the renminbi, increase the reserve and pricing functions of the renminbi, enhance the international credit and influence of the renminbi, and establish an exchange rate formation mechanism and a capital account convertibility system that are in line with China's national conditions.
Fourth, we should promote financial opening-up and cooperationRelax the conditions for entry and exit of the financial market, lower the barriers and restrictions of the financial market, increase the competition and vitality of the financial market, and improve the efficiency and innovation of the financial market.
China will continue to expand the opening up of banking, insurance, and other financial fieldsEncourage foreign-funded financial institutions to participate in the development of China's financial market, protect the legitimate rights and interests of foreign-funded financial institutions, and promote the diversification and internationalization of the financial market.
China will also actively participate in global financial governanceStrengthen communication and coordination with international financial organizations and major financial countries, promote the reform and improvement of global financial supervision, and maintain global financial stability and development.
2023 is a year full of challenges and opportunities, China's financial system is facing unprecedented tests and pressures, but it also has unique advantages and potential. China's financial crisis can be overcome, China's financial policy is effective, and China's financial way out is clear.
Adhere to financial reform and opening-up, adhere to financial innovation and technology, adhere to financial services and supervision, and adhere to financial cooperation and win-winThis will provide strong financial support for China's economic and social development, and make China's financial contribution to building a community with a shared future for mankind. What are your thoughts on this?