From Deepening to Accelerating Xiao Gang Explaining the Connotation and Path of Financial Supply-side Reform

From Deepening to Accelerating Xiao Gang Explaining the Connotation and Path of Financial Supply-side Reform

China Finance Forty Forum on April 19, the Political Bureau of the Central Committee proposed to accelerate the structural reform of the financial supply side.

The structural reform of the financial supply side was first proposed during the collective study of the Political Bureau of the Central Committee on February 22 this year. At that time, the term was “deepened”, and two months later, “deepened” became “accelerated”.

What’s the meaning behind it?

  On April 20th, the 11th Anniversary Celebration of the China Finance 40 Forum (CF40)-2019?

The forty people’s annual meeting and thematic seminar “Changing and Resolving Bureaus: The Next Journey of China’s Economic and Financial Reform” are emerging in Beijing.

At the meeting, CF40 senior expert Xiao Gang pointed out that the connotation of financial supply-side structural reform mainly has four points: First, focus on the supply side, not the demand side of credit expansion.

  Second, focus on both service functions and service quality and efficiency, rather than large-scale extensive operations.

  Third, focus on the effective matching of precise supply and demand, rather than increasing ineffective and inefficient supply.

In general, there is a contradiction between excessive money and structural imbalances, whether it is money supply or credit supply.

  Fourth, focus on institutional reform and mechanism conversion, rather than simply equating policy implementation and alternative means.

  Regarding the current relationship between overall supply-side structural reforms and financial supply-side reforms, Xiao Gang believes that financial reforms should serve economic reforms, but economic reforms will also bring challenges to the financial industry, including structural deleveraging and zombie enterprise processing.Wait.

He pointed out that the structural reform of financial supply side is in parallel with the prevention and mitigation of financial risks, and there are several points to be grasped in the current process of risk prevention.

  First, on the basis of stable growth, in the expected development, prevent and mitigate risks.

If there is no certain growth and no expected development, this risk cannot be prevented in the end.

  Second, to prevent and control risks, we must grasp the rhythm and intensity, be consistent, controllable, orderly, and appropriate.

  Third, prevention and control of financial risks must be driven by reforms, with special attention to strengthening the foundation.

Speed up the construction of financial infrastructure, do a good job of comprehensive statistics of the financial industry, and improve the information system and credit punishment mechanism.

  Fourth, “managing people, keeping money, and tying up the institutional firewall” is both the content of reform and the guarantee to promote reform and prevent and control risks.

  Fifth, in promoting reform and opening up, we must improve our financial management capabilities and our ability to prevent and control risks.

  The following is the actual record of Xiao Gang’s speech, which has been reviewed by the author.

  General Secretary Xi Jinping first proposed to deepen financial supply-side structural reforms during the collective study of the Political Bureau of the CPC on February 22, 2019.

On April 19, when the Political Bureau of the Central Committee studied the economic expectations for the first quarter, it was required to accelerate the structural reform of the financial supply side.

The nature of structural reform of the financial supply side can be seen.

General Secretary Xi has carried out financial supply-side structural reforms based on a profound summary of the nature and operating laws of finance, especially on the basis of a deep analysis of the development and changes in the financial industry since the 18th National Congress of the CPC.

The speech on financial work at the February meeting was the further enrichment and development of General Secretary Xi’s new ideas and new requirements on financial work.

  The central transition of financial supply-side structural reform is the adjustment and optimization of the financial system structure. At the same time, a two-way goal of strengthening financial service functions and precision financial services is proposed.

The first objective, in addition to strengthening the function of financial services to the real economy, also proposes a function of serving the people’s lives.

In addition, it has explicitly proposed the need for precise financial services, which involves the establishment of a multi-level, wide-coverage, differentiated, customized, and reasonable and efficient financial system.

Focusing on this central interest rate, the issues of financing structure, financial institution system, financial market system, and product system have been further raised.

This important speech set the direction for deepening financial reform and opening up.

  What is the connotation of financial supply-side structural reform?

  First, focus on the supply side, not the demand side of credit expansion.
Flood flooding cannot be implemented as soon as it represents the function of financial services to the real economy. The central government’s requirements have always been very clear, but not flood flooding at the same time.

In the first quarter of 2019, bank loans increased by 6 trillion yuan, and social financing increased by 8 trillion yuan, so the question of flooding flooded again.

I understand that financial reform is focused on the supply side, not on credit expansion.

  Second, focus on both service functions and service quality and efficiency, rather than large-scale extensive operations.
This is very clear.

  Third, focus on the effective matching of precise supply and demand, rather than increasing ineffective and inefficient supply.In general, there is a contradiction between excessive money and structural imbalances, whether it is money supply or credit supply.

  Fourth, focus on institutional reform and mechanism conversion, rather than simply equating policy implementation and alternative means.

Monetary and credit policies and macro-scale measures are constantly adjusted according to the economic and financial situation. The financial sector has gradually worked on merging these policies and restructuring measures. However, these cannot replace reforms, but still focus on the transformation of institutional mechanisms.

  Why deepen 深圳桑拿网 the structural reform of the financial supply side is first and foremost the need for changes in domestic and foreign economies.

  In 2013, the Party Central Committee proposed a period of shifts in economic growth, a period of structural adjustment, and a “three phases” of digestion of stimulus policies.

Since 2014, downward pressure on the economy has increased.

From about 2014 to 2016, it was in a period of relatively loose policy, including lowering of rations and interest rates, relaxation of restrictions on real estate purchases, down payment and loan restrictions, etc.

By the second half of 2016 and 2017, the supply-side structural reforms of the economy were launched.

Fundamentally, the momentum of global economic recovery is also increasing.

Therefore, in the second half of 2016, both domestic and international economic development was relatively fast.

However, in 2018, the expected mutations are also due to various factors, leading to the superposition of multiple internal austerity effects, causing difficulties in 2018.

Therefore, the structural reform of the financial supply side is based on changes in economic indicators at home and abroad.

  The economic work in 2019 mainly grasps the three major relationships.

  First, we must coordinate domestic and international relations.

Where is the foothold?

Concentrate on doing your own thing.

Second, we must grasp the relationship between steady growth and risk prevention. Where should we settle?

The economy must not be allowed to slip out of a reasonable range, which is a GDP growth rate of 6% to 6.

5%.

Third, handle the relationship between the government and the market, and gradually reform and open up to stimulate the vitality of the market itself.

  First of all, it is the stability of the word, the need for progress in stability.

Stable finance, stable foreign trade, stable foreign countries, stable investment, stable expectations, stable employment.

There are also “six stability” in stable finance, stable liquidity, stable social integration, stable stock market, stable debt market, stable exchange market and stable housing market. These are the six aspects of maintaining financial stability.

To achieve the requirements of the central government’s six stability and financial stability, there is an urgent need to accelerate the structural reform of the financial supply side.

  Thirdly, it is the need of economic level and industrial development stage.

The proportion of direct financing in high-income and middle-income economies increased.

The uncertainty and rapid changes of the innovative and creative economy make risk sharing and benefit sharing a direct financing advantage.

The rule of law, culture, and credit systems promote direct financing.

Interest rate, exchange rate, capital exchange, and comprehensive management reforms are driving changes in financial structure.

Based on the current stage of economic development, the level of economic development and the stage of industrial development, there is an urgent need to promote structural reforms on the financial supply side.

  What is the relationship between economic supply-side structural reform and financial supply-side structural reform?

  Financial supply-side structural reform is part of the economic supply-side reform. Financial reform must be subordinated to serve economic reform.

At the same time, the two promote each other.

If economic supply-side reforms are not effectively implemented, it will also be difficult for financial supply-side reforms.

The supply-side structural reform of the economy provides both possibilities and challenges for the financial industry.

An important goal of the structural reform of the supply side of the economy is to have the vitality of the micro-subjects and the level of the industrial chain to be improved.

This has created a good environment for the development of the financial industry and is worthy of an alternative foundation.

  But at the same time, we should see that the supply-side structural reform of the economy will bring challenges to the financial industry.

This challenge includes structural deleveraging and disposing of zombie businesses.

Practically speaking, the speed of zombie companies is still relatively slow. If we speed up the processing speed, it will have a great impact on our financial industry and our asset quality.In addition, the potential risks of local hidden debt are still very large, and the disintermediation of funds has brought great pressure on the transformation of the financial industry and the prevention of financial risks.

  Financial supply-side structural reform is in parallel with preventing and mitigating financial risks, with the same goals, mutual penetration and coordination.

The goals of both sides are to promote economic growth and to overcome the middle income trap.

There are several points to be grasped in the current process of risk prevention.
  First, on the basis of stable growth, in the expected development, prevent and mitigate risks.

If there is no certain growth and no expected development, this risk cannot be prevented in the end.

  Second, to prevent and control risks, we must grasp the rhythm and intensity, be consistent, controllable, orderly, and appropriate.

This puts higher demands on the financial industry to deleverage and prevent risks, and it also sums up the lessons learned in 2018.

We have some problems in order and appropriateness. In the future, we must pay attention to grasping the rhythm and strength.

  Third, prevention and control of financial risks must be driven by reforms, with special attention to strengthening the foundation.
Speed up the construction of financial infrastructure, do a good job of comprehensive statistics of the financial industry, and improve the information system and credit punishment mechanism.
  Fourth, “managing people, keeping money, and tying up the institutional firewall” is both the content of reform and the guarantee to promote reform and prevent and control risks.

  Fifth, in promoting reform and opening up, we must improve our financial management capabilities and our ability to prevent and control risks.
  Finally, how to implement financial supply-side structural reforms?

  We must implement the eight-character policy.

The Eight Character Guide is “Consolidate, Enhance, Enhance and Unblock”.

Consolidation is to consolidate the results of deleveraging and managing chaos in the financial industry.

There is indeed a lot of work to be done in this regard.

In terms of enhancing service capabilities, innovation capabilities, and management capabilities, the financial industry also needs to increase its efforts.

In terms of improvement, it is very important to improve our consciousness of incorporating new development concepts, focusing on matching financial supply with effective demand, thereby improving asset quality and service levels.

In terms of unblocking, it is mainly to unblock monetary policy mechanisms and strive to achieve three virtuous cycles: a virtuous cycle of finance and the real economy, a virtuous cycle of finance and real estate, and a virtuous cycle within the financial system.

  To implement the structural reform of the financial supply side, one of the keys is to enhance the sense of urgency and mission of financial reform and opening up.

Why ask this question?

At present, China’s financial strength continues to increase, and China’s four major banks are ranked first in the world’s top ten banks in 2018.

Looking back on the history of the past 100 years, in 1913, the top 20 banks in the world were mainly British, and in addition to banks in other European countries, there were not many banks in the United States.

By the 1950s and 1960s, US banks overlapped with major parts of the 20 largest banks in the world.

By the 1980s, Japanese banks had come to the forefront.

To this day, China’s banking industry has also moved ahead.

This achievement is shared by all.

  Judging from the development of small and medium-sized financial institutions, the overall situation is also stable.

Reforms in many past situations have been forced. Looking back at the history of financial reforms, it is only when there are many problems and even crises that there is a motive force for reform.

So, when China ‘s current financial crisis is relatively stable and the strength of the financial industry continues to increase, how can it enhance the sense of urgency and mission of reform?

This is a big problem we face.

  The requirements for the new round of financial reform and opening up are very high.

The most important thing is to have a sense of urgency, a sense of mission, and the pursuit of self-confidence and self-improvement, to improve the level of financial reform and opening up, enhance international competitiveness, take the road of financial development with Chinese characteristics, and formulate international financial governance and rules.Contribute Chinese wisdom and solutions.

Signal to add positions?

Chen Guangming, Fu Pengbo at the helm of the public offering suddenly opened a large amount of subscriptions

Signal to add positions?
Chen Guangming, Fu Pengbo at the helm of the public offering suddenly opened a large amount of subscriptions

Related reading: Dongfang Hong, Xingquan’s favorite stocks were brought to Rui Yuan by Chen Guangming and Fu Pengbo.

Fund boss Chen Guangming and Fu Pengbo at the helm of the public offering suddenly opened a large amount of purchases of Ge Jia to set sail on the science and technology board, while the Shanghai Composite Index hovered at 2900 points. Fund leader Boss Chen Guangming and Fu Pengbo’s Ruiyuan Growth Value Mixed Fund suddenlyAnnounced the release of large purchases.

  On July 24, surging news reporters learned that the Ruiyuan Growth Value Hybrid Fund became effective on July 26 and opened a large amount of subscriptions.

The fund also confirmed the news by issuing an announcement on July 25.

  In this regard, some representatives were very excited to say that the position of Ruiyuan Growth Value Hybrid Fund 北京夜网 was close to 80% at the end of the second quarter. At this point, the large-scale purchases were released and the scale of expansion seemed to be a structural opportunity for the two fund managers.And ready to signal a position increase.

  ”This time Ruiyuan’s growth and opening up may be the last chance to catch a ride on Ruiyuan Fu Pengbo.

“A bank channel financial manager told the surging news reporter that this time Ruiyuan plans to increase some scale, and the subscription share will not be proportionately placed. However, the fund manager also has certain expectations on the scale limit, and does not rule out expansion toAfter a certain scale, the subscription will be suspended.

  The above-mentioned bank channel financial management manager further found that according to his understanding, the fund manager had always felt that it was not time to add positions. Now it is more appropriate to place around 2900 points, so he opened a large amount of purchases.

  On March 21, the first fundraiser of the “Guangyuan + Fu Pengbo” fund gang combination made Ruiyuan’s growth value mixed fund the first fundraiser was enthusiastically sought after by the market. This product with a size limit set at 6 billion US dollars was eventually over 72 billionFunds snapped up and became the equity fund with the highest subscription amount on the first day of this issue quickly.

  On March 27th, Ruiyuan Growth Value Hybrid Fund announced the effective date of the contract. The fund was established on March 26, and 410,000 people effectively subscribed. The per capita subscription was 170,000 yuan, and the Class A allocation ratio was as low as 7.

03%, after the placement, the funds A and C shared the total raised amount of 58.

700 million.

  It is obvious that the employees of Ruiyuan Fund Company subscribed for the distribution of Fund A at the time of the initial launch.

660,000 copies, accounting for 0.

002%; subscription C share 2344.

50,000 copies, accounting for 0.

399%, a total of 2357 subscriptions.

20,000 copies, accounting for 0% of the fund’s total shares.

401%.

  However, the mandatory announcement of the fund contract showed that Fu Pengbo and Zhu Xi did not hold the fund at the time.

I don’t know whether the fund managers Fu Pengbo and Zhu Xi will invest in this product for the first time due to the opportunity to release large purchases.

  On June 25, Ruiyuan Growth Value Mixed Fund, which was established for 3 months, ushered in the first open subscription and redemption.

However, restrictions are still imposed on large-scale purchases. Individual fund accounts subscribe for and purchase Class A shares on a single day. The total amount of Class C shares does not exceed 1 million.

  So, how is the performance of this explosive fund?

  Ruiyuan’s growth value mix disclosed in the second quarterly report of 2019 recently showed that after the opening of the second quarter, the net value of Ruiyuan’s growth value mix fund has declined.

  As of the end of the second quarter, Ruiyuan’s growth value mixed A fund share net value.

9,865 yuan, the average value of the report, the growth rate of this type of fund share net value is -1.

40%, the benchmark income for the same period of performance can be -1.

99%; as of the end of the reporting period, Ruiyuan Growth Value Mixed C Fund allocated net value.

9,854 yuan, the average value of the report, the growth rate of this type of fund share net value is -1.

50%, the benchmark income for the same period of performance can be -1.

99%.

  However, as of July 24, the fund’s net A-share value has rebounded to 1.

At 0253, C’s total net value rose back to 1.

0239.

  Ruiyuan Growth Value Hybrid Fund A / C share net worth performance Ruiyuan Growth Value Hybrid Fund’s second quarter report showed that the fund’s share at the end of the period was 59.6.6 billion copies, an increase of 92.19 million copies, an increase of 1 when it was established earlier.

57%.

That is to say, although the market experienced a decline in the second quarter, the fund’s net value also fell by 1.

40%, but Ruiyuan’s growth value share is still increasing.

  Regarding the fund’s investment strategy and operational analysis, Fu Pengbo and Zhu Qi said in the second quarterly report that after the fundraising was established, the fund completely operated for a quarter in the second quarter of 2019.The adjustment process of liquidity from relatively loose to moderately counter-cyclical.

Following the agreement of the fund contract, the fund gradually increased its position and reached a relatively high position by the second quarter.

  In the construction of the portfolio, the two fund managers relatively dilute the timing and focus on optimizing the position structure.

Focusing on industries such as advanced manufacturing, medical health, and food consumption.

He also stated that the existing holding companies represent high-quality enterprises within the domestic subdivided industries. To a certain extent, their core competitiveness can help companies withstand changes in the economic cycle and uncertainties in external demand.