Author: Jing Xuecheng
The Central Committee of the Communist Party of China's Decision on Several Issues Concerning the Perfection of the Socialist Market Economic System (hereinafter referred to as the Decision) adopted by the Third Plenary Session of the 16th CPC Central Committee is based on the basic connotation and framework of China's socialist market economic system, according to the new situation and problems arising from the reform and development in 10, combined with the new characteristics and trends of the development of the present era, Based on the fundamental purpose of further deepening the economic system reform and improving the socialist market economic system, a programmatic document from the initial establishment of the socialist market economic framework to the improvement of the socialist market economic system was put forward, thus forming a crucial stage of China's economic system reform. The "Decision" not only makes a breakthrough in major theoretical understanding, but also has strong operability in guiding practice. Forward-looking, comprehensive and profound, pragmatic and innovative, and policy breakthrough are the four outstanding features of the Decision. The Decision also puts forward a new theoretical thinking and a new policy framework for the reform of the financial system.
1, put forward "people-oriented, establish a comprehensive, coordinated and sustainable development concept" for the first time-pointed out the direction for the central bank's macro-control after China's economic development entered a new era.
Since the reform and opening up, China's economy has grown at a high speed, and the efforts of economic construction and social development to meet people's material needs have made great progress, but it is far from enough to meet people's needs in culture, education, medical care and ecological environment. In addition, with the rapid economic growth, the contradiction of unbalanced economic development is becoming increasingly acute, especially the gap between urban and rural areas and the gap between the east and the west is widening; The problem of disharmony between economic growth, social development and resource and environmental protection is becoming more and more prominent. This makes people further realize that economic growth is only one aspect of social progress, not the whole; Economic growth can neither fully represent nor replace economic development; Comprehensive, coordinated and sustainable scientific development is the correct measure.
After 25 years of reform and opening-up, it is necessary and possible for our country to put comprehensive, coordinated and sustainable development in a more important position while focusing on economic construction. When the central bank performs the function of financial macro-control, it must take this new Scientific Outlook on Development as the starting point of performing its functions and the destination of formulating policies, that is, as the soul of exerting the macro-control art of the central bank.
At present, China's economic growth rate ranks among the top in the world, which is closely related to the effective and steady monetary policy and appropriate macro-control by the central bank. In recent years, great changes have taken place in the credit structure of China's commercial banks, from providing productive credit in the past to personal consumption credit. The growth rate of personal housing consumption credit has been higher than that of enterprise housing development loans since 1998, and credit growth has played an important supporting role in investment and consumption. China's input and output are relatively low, accounting for 40% of GDP every year; The shortage of product supply has been basically eliminated, but the industrial structure is not reasonable, and the proportion of the tertiary industry is low; High-tech industries are developing rapidly, but their technological innovation ability is weak; The economic growth rate is fast, but the personal income growth is slow, and the contradiction of unreasonable income distribution is serious. The existence of this series of problems also requires monetary policy to play an effective regulatory role. Our country has gone through the primary development stage of "developing economy and ensuring supply", and the material supply is relatively abundant. Now it should be "developing economy and society", that is, promoting social progress and realizing the all-round development of people. This "Decision" emphasizes that the future development should not only be economic growth, but also promote the all-round development of society and people on the basis of economic development.
At the same time, many related laws originally formulated should also keep pace with the times, and make corresponding amendments around this center, such as amending the Law of the People's Bank of China, and changing the ultimate goal of monetary policy from "maintaining the stability of RMB value and promoting economic growth" to "promoting economic development".
2. It is proposed for the first time that "the government's economic management function should be effectively transferred to the main service market players and create a good development environment"-providing a guiding ideology for the central bank to do a good job in financial services.
The transformation of China government functions is the need of the development of market economy. The government should change from the manager of production to the server of economic operation, from the subject and approver of investment and financing to the provider of public goods and the defender of a good investment environment. As an important government department, the central bank has many financial service functions, such as managing the national treasury, maintaining the normal operation of the payment and clearing system, issuing RMB, managing the circulation of RMB, etc. In fact, it is a provider of various public services. According to the "Decision", the government's economic management function will be transferred to the requirements of mainly serving market players and creating a good development environment. This new concept also means that the central bank should raise awareness, establish an effective financial service system and improve the level of financial services from the perspective of providing good services for market players and creating a good development environment. Combine macro-control with financial services, integrate macro-control into services, familiarize yourself with the market, understand demand, collect information, conduct forward-looking analysis, observe the trend of currency movement, and convey the macro-control intention of the central bank through financial services; By creating a good development environment for market players, the transmission channels of monetary policy can be unblocked and the relationship between banks and enterprises can be straightened out.
3. Put forward for the first time "improving the financial supervision of the central bank, ... maintaining the overall stability of financial operation and financial market, and preventing systemic risks"-established the functional orientation of the central bank.
This is a redefinition and standardization of the functions of the central bank under the new and developed market economy pattern.
First of all, the central bank should further improve the financial control mechanism, improve the macro-financial control level, improve the economic and financial operation mechanism, improve the economic and financial operation trend and monitoring index system, accurately judge and predict the economic and financial situation, take timely pre-adjustment and fine-tuning measures, and enhance the forward-looking and scientific nature of monetary policy. We will steadily promote the marketization of interest rates and give full play to the regulatory role of the interest rate mechanism. Improve the RMB exchange rate formation mechanism and enhance the adjustment of exchange rate leverage to the economy. Establish and improve the financial market system and improve the transmission mechanism of monetary policy. Establish and improve the cooperation mechanism between the central bank and some departments to improve the efficiency of monetary policy regulation.
Secondly, since the People's Bank of China separated some banking supervision functions, whether the three functions of monetary policy, financial supervision and financial services performed by the central bank in the past have been reduced to two functions of implementing monetary policy and providing financial services has always been a concern of all sectors of society. The Decision clearly points out that the financial supervision function of the central bank also includes maintaining the overall stability of financial operation and financial market, which means that the central bank should also perform its financial supervision duties. This is because China's economic operation has to face not only the accumulated financial risks and historical burdens in the economic transition, but also the emerging financial risks in deepening market reform and opening up, and the central bank's task of preventing and resolving financial risks is even more arduous. However, this kind of financial supervision responsibility is different from the supervision of specific banking business in the past, but it supervises the major issues of the development and stability of the entire financial industry, including banks, securities and insurance, in order to prevent systemic risks, maintain its overall stability and promote its coordinated development. As the sole provider of legal means of payment and the guardian of the payment and clearing system, the central bank should play a role in maintaining the operation of the financial market and the stability of the financial system, and become a "watchdog"-a gatekeeper to prevent overall financial risks. This requires the central bank to study the coordinated development of banks, securities and insurance; To study the laws governing the reform and development of China's financial industry; To study and implement policies and measures to prevent and resolve systemic financial risks; Study and apply the final payment method of the central bank, and solve the withdrawal of financial institutions and the corresponding asset management problems when necessary. For example, monitoring and evaluating the overall risks of financial industry, financial holding companies and cross-cutting financial instruments; Strengthen the supervision of money market, foreign exchange market and gold market, pay close attention to the interaction between money market, foreign exchange market, capital market, insurance market and real estate market, and prevent cross-market risks; Strengthen the research and formulation of policies matching foreign exchange management, prevent the impact of international hot money, so as to improve the overall competitiveness of China's financial industry, safeguard national economic and financial interests, and realize the internationalization, marketization and standardization of China's financial industry as soon as possible in accordance with the commitments of the World Trade Organization.
In a word, when the central bank performs macro-control functions and maintains financial stability, it needs to scan a wide range, explore new means to maintain financial stability, and study new measures for the central bank to provide social financial services.
4. For the first time, it is proposed to "improve the financial risk monitoring and early warning mechanism and strictly implement the market exit system according to law"-to build a financial safety net for the whole society.
Without the test of life and death, financial enterprises will not have sound management. In recent years, we have been paying attention to strengthening financial supervision, not only establishing three financial supervision institutions, namely China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission, but also emphasizing the establishment of internal control mechanism for financial enterprises, strictly requiring commercial banks to have a core capital of 4% and a capital adequacy ratio of 8%, and at the same time paying attention to giving play to the external supervision function of social organizations such as trade associations. However, for a long time, China has not established a strict market exit system, and many problem enterprises are bad but not dead, or stiff but not dead, which not only accumulates a lot of financial problems, but also does not fully reflect the market competition principle of survival of the fittest.
The "Decision" proposes to improve the monitoring, early warning and disposal mechanism of financial risks, strictly implement the market withdrawal system according to law, and further emphasizes the need to supervise the whole process of financial risks, that is, closely monitor the rational operation of financial enterprises, give early warning before possible problems arise, and deal with them promptly and effectively after problems arise, so that financial enterprises with serious problems can withdraw from the market according to law. Only strict financial supervision can ensure the safety and effectiveness of financial operation; Only by strictly implementing the market withdrawal system can we prevent individual financial risks from spreading into systematic financial risks and promote existing financial enterprises to become qualified enterprises that meet the five standards of "sufficient capital, strict internal control, safe operation, good service and good efficiency".
5. It is proposed for the first time to establish and improve the coordination mechanism among banking, securities and insurance regulatory agencies and with the central bank and financial departments to improve the level of financial supervision. This has established a policy coordination framework for China's financial supervision system.
Although mixed operation has become a trend in the world, China still implements the management system of separate operation and supervision. Up to now, a three-pillar separate supervision mode has been established, which is helpful to the professional supervision of banks, securities and insurance, but cooperation on the basis of division of labor is also essential. Moreover, with the innovation of financial products and the development of diversified management of financial institutions, some cross-industry financial products, financial services and financial institutions are constantly emerging, and the trend of integration is becoming more and more obvious. It is necessary to establish a cooperation and coordination mechanism among the three major regulatory authorities to prevent gaps in financial supervision and reduce duplication of supervision. At the same time, in view of the central bank's role in maintaining the overall financial security, financial means is also an effective way to maintain financial security. China's financial supervision model is not entirely a "three-meeting supervision model", but a "three-meeting supervision model". At the same time, it is also a three-level macro-financial supervision system, that is, three supervision committees are responsible for specific supervision affairs; The central bank is responsible for maintaining the overall stability of financial operations and financial markets; As the investor of state-owned assets and the maker of financial rules, the Ministry of Finance also has a certain regulatory responsibility for the smooth operation of macro-economy and finance and the compliance operation of financial institutions.
6. Put forward for the first time "commercial banks and securities companies, insurance companies, trust and investment companies, etc.". It should become a modern financial enterprise with sufficient capital, strict internal control, safe operation, good service and good benefits "-this has laid a micro foundation for the establishment of a modern financial system in China.
The first requirement for deepening the reform of China's financial system is that financial enterprises meet five standards at the same time: sufficient capital, strict internal control, safe operation, good service and good efficiency. This is the first comprehensive and accurate summary of the connotation of modern financial enterprises, and it also reflects the deepening and improvement of people's understanding of financial enterprises, in which capital adequacy is the premise, strict internal control is the guarantee, operational safety is the requirement, good service is the responsibility and good efficiency is the purpose. The five standards of modern financial enterprises are also the concretization of modern enterprise system in the financial industry. In the past, on the basis of emphasizing the three principles of "efficiency, liquidity and safety", the basic requirements for the operation of financial enterprises were to establish "independent operation, self-risk, self-financing and self-discipline", while "sufficient capital, strict internal control and safe operation" further deepened and expounded the two requirements of "self-risk and self-discipline". "Good service and good benefit" is the best embodiment and final result of the two requirements of "independent operation and self-financing".
7. It was first proposed to "encourage social funds to participate in the restructuring and transformation of small and medium-sized financial institutions. On the premise of strengthening supervision and maintaining sufficient capital, we will steadily develop financial enterprises of various ownership systems "-opening up a channel for the restructuring and transformation of small and medium-sized financial institutions.
A major theoretical breakthrough of this decision is to put forward the viewpoint and policy of relaxing the market access of the non-public economy so that it can enjoy the same treatment as other enterprises. The guiding role of this spirit in the reform of the financial system is reflected in the requirements of "encouraging social funds to participate in the restructuring and transformation of small and medium-sized financial institutions, and steadily developing financial enterprises of various ownership systems on the premise of strengthening supervision and maintaining sufficient capital". This has opened up a channel for mobilizing the financial forces of the whole society to reorganize, transform and upgrade small and medium-sized financial institutions.
Since the reform and opening up, China's financial industry has been insisting on opening to the outside world, which has not only attracted a large number of foreign investors to participate in economic construction, but also allowed foreign financial institutions to set up branches in China. However, the pace of opening up of the financial industry is far less than that of opening up. Allowing social capital to enter the financial industry will give full play to the advantages of clear property rights of private capital, establish a market economy operation mode faster, better absorb social capital into the financial field, and add new vitality to the financial industry while importing fresh blood. I think here, social capital includes a wide range, generally referring to capital with obvious social attributes, including private capital.
The "Decision" also emphasizes "on the premise of strengthening supervision and maintaining sufficient capital, we will steadily develop financial enterprises of various ownership systems". This further shows that the understanding of social capital entering the financial industry has been further improved. Because the financial industry cannot be simply equated with other industries, finance is the core of modern economy and a special industry to manage financial risks. For a long time, there has been no clear conclusion whether private capital can enter the financial industry. The key is not whether private capital is allowed to enter the financial industry, but whether the involvement of different ownership funds is more conducive to running finance well and improving financing efficiency. In the 1980s, many urban and rural credit cooperatives absorbed private capital, and city commercial banks also involved various social funds. However, due to the lack of effective management and operation mechanism, a series of serious problems have emerged, and finally the government has to come forward for liquidation, closure and disposal. Market economy countries in the world basically allow private capital to intervene in banks. Many big banks are controlled by capitalists, but they all operate according to the modern enterprise system and do not do private banks. However, in the past, our social capital entered the financial industry more for the purpose of making money, which led to a large number of deposits flowing into private wallets and a large number of non-performing assets accumulating, and many remaining problems have not been solved so far. Therefore, the decision puts forward three preconditions for the current development of financial enterprises with various ownership systems: strengthening supervision, maintaining sufficient capital and steady development.
The Decision also encourages social capital to participate in the restructuring and transformation of small and medium-sized financial institutions. Because from the current source of social capital and the existing management level, social capital should accumulate management experience by participating in the reorganization and transformation of small and medium-sized financial institutions, improve the ability to control risks, and lay the foundation for participating in the merger and reorganization of larger financial institutions in the future.
8. For the first time, it was clearly stated that "actively promote the reform, opening up and stable development of the capital market and expand direct financing. Establish a multi-level capital market system, improve the capital market structure, and enrich the capital market products. ..... to establish a unified and interconnected securities market "-the blueprint for China to establish a financial system with reasonable structure, perfect functions and effective supervision.
It is difficult to establish a socialist market economy in China without a financial system with complete structure, complete functions and effective supervision. However, at present, China's financial system mainly relies on indirect financing, monopolizing the allocation of funds, which not only causes enterprises to rely heavily on bank credit, but also makes financing risks almost all concentrated in banks. Expanding direct financing has always been the goal pursued by China, but in recent years, the proportion of direct financing has declined instead of increasing. There are many reasons, such as the sluggish stock market, the lagging development of the bond market and the insufficient use of other financing methods. Among them, there are market operation effects and institutional obstacles. After two years of revision, the laws and regulations on corporate bonds have not yet been promulgated, and the bond market is still in the stage of case-by-case examination and approval by the administrative department, and only a few large enterprises are allowed to develop. Expanding direct financing can not only increase broader financing channels for enterprises, better meet social needs, but also reduce the credit pressure of commercial banks, establish an effective risk dispersion mechanism for the whole society, open up a broader development path for commercial banks, and let commercial banks free up their hands to do detailed financial intermediary business.
Establishing a multi-level capital market is an inevitable choice for China's financial development. China's huge economic scale and diversified levels determine that enterprise financing can't solve all the direct financing needs only by one main board market, but also need other capital markets that meet different needs, such as the Growth Enterprise Market. Only by perfecting multi-level and multi-form capital transactions can we improve the capital market structure; Only by enriching capital market products can we provide new markets for high-tech enterprises' financing on the basis of expanding direct financing and effectively solve the financing difficulties of small and medium-sized enterprises.
Establishing a unified and interconnected securities market is the ultimate solution to solve the current split, independent and unbalanced development of the bond market. The establishment of China's inter-bank bond market and exchange bond market has special functions and functions at the beginning of the financial system reform. However, in today's financial development, the whole financial system has established a risk prevention mechanism and basic risk prevention awareness and ability, and it is even more necessary to have a unified and interconnected securities market to increase capital flow and improve capital efficiency. Moreover, the unified and interconnected bond market can form the bond interest rate determined by the market, which can provide a basis for the marketization of interest rates in China and provide a reference for the central bank to set the benchmark interest rate. The establishment of a unified and interconnected securities market is also conducive to the smooth transmission channels of monetary policy.
9, the first complete put forward "to establish and improve the social credit system. Form a social credit system supported by morality, based on property rights and guaranteed by law "-laying a credit cornerstone for the economic and financial operation of the whole society.
An important reason why China's financial reform is difficult and tortuous is that the financial system reform is not limited to the adjustment or reconstruction of various relations within the financial industry, but a reform involving the whole society. Credit is the foundation of finance, which originates from credit and promotes finance. However, for a long time, individuals lack credit concept, enterprises lack credit constraints, society lacks credit system, and debt default is common. Bank credit funds have almost become "public goods"-free occupation. This not only leads to the inefficient operation of credit funds, distorts the relationship between creditor's rights and debts, but also destroys the basic moral standards and hurts the interests of law-abiding people. Without a good social credit system, it is impossible to implement the minimum basic rules of the market economy. It is decided to emphasize the establishment of a social credit system supported by morality, based on property rights and guaranteed by law, that is, to establish and improve a social credit system with morality, property rights and law as its three pillars, which is the fundamental policy to standardize the market economic order and the key to effectively play the role of the market economy.
10, clearly put forward for the first time "to further establish the dominant position of enterprises in investment, ... the state only approves major projects, government investment projects and restricted projects related to economic security, environmental resources and overall layout, and changes the approval system to the filing system for other projects"-established the operational basic principles for the reform of investment and financing system.
This is another major reform of the investment and financing system, and it will also be the most influential one. For many years, in the field of investment, government intervention has a strong color, not only in the approval and management of investment projects, but also in the high proportion of government-led projects, which not only affects the establishment of enterprises as market players, but also directly erodes the autonomy of investment decisions of enterprises; Moreover, the complicated approval procedures and links have created huge rent-seeking opportunities; At the same time, it encourages the emergence of "chief projects" and "model projects" for direct decision-making by administrative leaders; It disturbs the operating rules of the market economy, reduces the investment efficiency, and leads to inefficient investment and redundant construction.
This time, the "Decision" clearly stated, "To further establish the investment subject status of enterprises ... The state only approves major projects, government investment projects and restricted projects that are related to economic security, affect environmental resources and involve the overall layout, and other projects are changed from the approval system to the filing system." This further rationalizes the relationship between the government and enterprises in the field of investment and financing, and clearly stipulates that enterprises are the main investors. At the same time, it truly reflects the spirit of "doing something but not doing something" in the process of government macro-control, so that the government's macro-control role in the investment field is reflected in guiding the adjustment of industrial structure, establishing and improving the market regulation mechanism, and providing a good macro-environment for both investment and financing.
While re-establishing its position in the field of investment and financing, the government also requires financial institutions to further improve their ability to identify and judge the risks and benefits of investment and financing projects. The government is no longer the behind-the-scenes guarantor of enterprise investment and financing projects, and enterprises make their own decisions at their own risk. The financial industry should not only provide various investment and financing channels for enterprises by vigorously developing financial markets and financial products, but also strengthen the control and disposal of financial risks.