Regulatory tone! How will finance support the real economy in 2024? Here comes the expert interpreta

Mondo Finance Updated on 2024-02-02

A few days ago, the State Administration of Financial Supervision and Administration held a 2024 work conference to summarize the work in 2023 and deploy key tasks in 2024. The meeting emphasized that it is necessary to accurately and efficiently serve economic and social development, coordinate and do a good job in the "five major articles", better serve the development of new productive forces and the construction of a modern industrial system, focus on supporting the expansion of effective demand, continue to enhance the ability of inclusive financial services, and effectively improve the quality and efficiency of financial consumer protection.

In 2024, as the first full year of full performance, what clearer goals and clearer directions have been given by the State Administration of Financial Supervision around the banking and insurance industries to support the development of the real economy?

Coordinate and do a good job in the "five big articles".

In the past year, banking and insurance institutions have handed over a brilliant "answer sheet" focusing on doing a good job in the "five major articles" and supporting the construction of a modern industrial system. Regulatory data shows that as of the end of 2023, the balance of loans to high-tech enterprises nationwide increased by 20% year-on-year2%, and the balance of manufacturing loans increased by 17 percent year-on-year1%, of which medium and long-term loans increased by 291%。Strengthen the financial services of the whole life cycle of science and technology enterprises, and the loans to high-tech industries increased by 226%。IC co-insurance body provides insurance protection11 trillion yuan. The green credit balance of 21 major banks reached 272 trillion yuan, a year-on-year increase of 317%。In 2023, the premium income of green insurance business will reach 229.7 billion yuan, and the compensation expenditure will be 1214600 million yuan.

In 2023, the quality and efficiency of the banking and insurance industry in serving the real economy will be further improved, and the support for the real economy will be more precise and powerful. Wang Yifeng, chief analyst of Everbright's financial industry, said in an interview with a reporter from the Financial TimesThis is mainly manifested as: FirstFinancial resources are more used for key areas and weak links of the national economy, such as scientific and technological innovation, advanced manufacturing, green development, inclusive small and micro enterprises, and infrastructure, and the growth rate of loans in these areas is significantly faster than that of general loans. The second isThe financing cost of the whole society has been steadily declining, and the level of loan pricing has continued to decline; The third isThe "Notice on Strengthening Financial Services for the Whole Life Cycle of Science and Technology Enterprises" guides the use of more financial resources to promote scientific and technological innovation, and provides diversified financial services according to the needs of science and technology enterprises at different stages of development, such as start-up, growth and maturity; Four areGuide financial institutions to put support for the high-quality development of the manufacturing industry in a more prominent position, and strongly support the high-end, intelligent and green development of the manufacturing industry.

The meeting proposed that it is necessary to make overall plans for the "five major articles" to better serve the development of new productive forces and the construction of a modern industrial system. How should we grasp this requirement?

The core of the 'five major articles' is to support the real economy characterized by new quality productive forces, and in promoting the development of new quality productivity and the construction of a modern industrial system, the 'five major articles' actually complement each other and are each other's horns. Liu Ying, director and researcher of the cooperative research department of the Chongyang Institute for Financial Studies of Renmin University of Chinese, told the Financial Times reporter that this requires the integrated development of the "five major articles", and the development of scientific and technological innovation and disruptive technology frontier technologies should be strongly supported by science and technology finance; It is necessary to use green finance to support the technological transformation of low-carbon development, and support the development of industries including new energy vehicles; It is necessary to support the development of the pension industry and pension services by innovating the pension financial system; It is necessary to provide financial support for small, medium and micro enterprises with inclusive finance to solve the problem of difficult and expensive financing; It is necessary to support the digital economy and digital development with digital finance, as well as to achieve embedded development with the modern industrial system.

In the new financial regulatory system, financial supply will serve the real economy more vigorously. Cheng Rui, a distinguished senior researcher at the Shanghai Finance and Development Laboratory, said that financial funds will promote the transformation of the economic structure more accurately, and more financial resources will be used to promote scientific and technological innovation, advanced manufacturing, green development and micro, small and medium-sized enterprises. At the same time, it is necessary to give full play to the innovative means of digital finance, improve the quality and efficiency of services, and optimize financing costs.

Efforts will be made to support the expansion of effective demand

The first economic work conference held at the end of last year emphasized that "we must insist on deepening the supply-side structural reform and focusing on expanding effective demand and making concerted efforts". In line with the same vein, the State Administration of Financial Supervision also proposed to "focus on supporting the expansion of effective demand" at this meeting.

In this regard, Dong Ximiao, chief researcher of Zhaolian and part-time researcher of the Institute of Financial Research of Fudan University, told the Financial Times: "At present, although China's economy is speeding up recovery, the foundation for recovery is not very solid, and the pressure of internal demand contraction is greater, and effective demand is still insufficient. Under such circumstances, to promote the sustained recovery of the economy, we must give full play to the advantages of China's super-large-scale market and further expand effective demand. The financial system should adopt a more comprehensive and flexible approach to provide services that are more supportive of the expansion of effective demand. ”

So, in the next step, the focus of the financial industry to support the expansion of effective demand is **?

In 2024, boosting household consumption is the top priority to expand effective demand. Dong Ximiao suggested that more powerful and effective policies should be adopted to stimulate potential consumption, accelerate the development of consumer finance, and promote consumption from post-epidemic recovery to continuous expansion. At the same time, a more resolute and systematic policy package should be introduced to comprehensively boost confidence and expectations in the real estate market and stabilize and expand residents' housing consumption.

For financial institutions, what can we do to expand effective demand?

Dong Ximiao gave an exampleOn the one hand,Financial institutions can make full use of the concepts and means of financial technology, accurately profile new citizens and other user groups by obtaining data and information from multiple parties, innovate credit evaluation methods, and launch products with flexible terms and moderate quotas and rates according to the needs of users at different stages such as employment, entrepreneurship and consumption; On the other hand,The development of bulk consumer financial products is the key at present, and we can strengthen cooperation with auto dealers, e-commerce platforms, shopping malls and supermarkets, strengthen the construction of bulk consumer finance scenarios, launch more consumer credit products for automobiles, tourism and home appliances, and enrich the bulk consumer finance product line.

We will continue to enhance our ability to provide inclusive financial services

At present, the development of inclusive finance in China has entered a new stage. According to the research and statistics of the World Bank and other international organizations, China's financial inclusion has been significantly enhanced, and inclusive financial services are at the leading level in the world, and some indicators have been at the forefront of middle- and high-income economies.

According to the latest regulatory data, as of the end of 2023, loans to inclusive small and micro enterprises and private enterprises increased by % year-on-year, respectively. Inclusive agriculture-related loans amounted to 1259 trillion yuan, a year-on-year increase of 2034%, agricultural insurance provides risk protection for agricultural development498 trillion yuan.

The meeting emphasized the need to "continue to enhance the ability of inclusive financial services and effectively improve the quality and efficiency of financial consumer protection".。So, how do we understand "inclusive financial service capabilities"?

In this regard, Mo Xiugen, vice president of the China Institute of Inclusive Finance, told the Financial TimesThe ability of inclusive financial services includes not only the ability to provide financial consumers with high-quality financial products, but also the ability to ensure that financial consumers can improve their production and living standards from financial services.

At present, insufficient service capacity has indeed become a major obstacle to the development of inclusive finance. In Mo Xiugen's view, financial institutions need to start from many aspects to enhance the ability of inclusive financial services, establish a people-oriented thinking, and provide a full range of financial services around the financial needs of financial consumers; It is necessary to strengthen digital construction, improve service efficiency, expand service boundaries, and provide real-time, high-quality, and low-cost financial services for financial consumers in different regions. It is necessary to improve the ability of financial services to be of social and ecological value, and to improve the ability of financial services in rural revitalization, common prosperity and ecological environment construction.

In addition, improving the financial health and financial ability of financial consumers is also a proper part of the topic. "Due to the limited ability of financial consumers, they do not have a sufficient understanding of the characteristics of financial products, and cannot use financial products correctly, which leads to undesirable results. Financial institutions have a responsibility to help financial consumers improve their financial capabilities and ensure that financial products produce good results. Mo Xiugen said that only in this way can the effectiveness of consumer protection work be improved in essence.

Strengthen risk reduction management services

The insurance industry has always played the role of an economic shock absorber and a social stabilizer. At the meeting, the State Administration of Financial Supervision highly affirmed the important role played by the insurance industry in natural disasters and emergencies: "The insurance compensation for flood disasters and major accidents in Beijing, Tianjin and Hebei has achieved quick compensation and pre-compensation, and full compensation should be paid. ”

In the face of flood disasters and major accidents in Beijing, Tianjin and Hebei, under the guidance of the State Administration of Financial Supervision, insurance institutions have made every effort to do a good job in flood prevention and disaster relief and post-disaster reconstruction. According to regulatory data, the insurance industry has paid a total of 12.6 billion yuan in claims for 16 flood-stricken areas such as Beijing-Tianjin-Hebei, so that it can pay compensation quickly, pay as much as it should be, and make reasonable pre-compensation.

In the context of high-quality economic development, how do we understand the positioning of the insurance industry's economic shock absorber?

The shock absorbers on the car can make the passenger not feel the bumps, or dissolve the big bumps into slight bumps. As a shock absorber to the economy, so should the insurance industry, which should have been in its role until a disaster strikes. Wang **, professor and assistant dean of the School of Insurance of the University of International Business and Economics, vividly explained to the Financial Times.

So, in the next step, how can the insurance industry further play the role of economic shock absorber and social stabilizer?

Disaster prevention, mitigation and relief in the insurance industry is a systematic project, in which 'insurance' is the premise, 'compensation' is the basis, 'rescue' is the supplement, and 'prevention' is the core. Wang ** said that insurance institutions need to actively strengthen risk reduction management services, especially the use of scientific and technological means for social disaster prevention, mitigation and relief, with intelligence as the starting point, deepen the empowerment of insurance technology, and realize a virtuous circle of scientific and technological investment, risk reduction and fee reduction and efficiency.

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Reporter: Sun Rong.

Editor: Han Shengjie.

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