2016 International Monetary Forum·Parallel Forum II-“Chinese Capital Market: Opening, Risk and Regulation”
2016-07-24 IMI
Discussing on the Forum
First, Wang Guogang, vice director of Financial Research Institute of Chinese Academy of Social Sciences, made a speec themed with Renminbi Internationalization and Opening of Capital Market. He introduced the channels of Renminbi internationalization and analyzed thoroughly why it was important that the capital market should provide various financial vehicles during renminbi Internationalization. He addressed that, the biggest factor to exchange rates of two countries is change of their economic power; the economic gap between China and America is narrowing down, so renminbi will appreciate for a long time; we still have a long way to marketize Chinese interest rates of depository and loan. He stressed that, in order to provide various financial products and service, we should make the financial market sophisticated and improve the operation of financial institutes.
Wang Guogang
Jiao Jinpu, Chairman of Shanghai Gold Exchange, delivered a speech themed with Advancing the internationalization of Chinese Golden Market. He used data to analyze the background of Chinese Golden Market and thought that internal and external conditions were mature. He introduced that two major strategies put forward by Gold Exchange was Marketization and Internationalization. In September, 2014, the international board of Shanghai Gold Exchange was initiated. It is open domestic gold market for foreign investors, realizing the effective connectivity of domestic and foreign gold markets. He stressed that there are two prerequisites for gold products calculated by renminbi to go global: first, we should provide just, sound, tradable and reliable benchmark price of gold in renminbi; second, we should set up trading platform overseas. He remarked that, Shanghai Gold Exchange had initiated Shanghai-Hong Kong Stock Connect for gold and launched Shanghai Gold; the next goal was to realize internationalization and globalization of gold affairs and open markets in Shanghai, London and New York.
Jiao Jinpu
Wu Qing, Researcher of Institute of Development Studies of the State Council made a speech themed with International Strategy of Chinese Capital Market. He thought that, due to the mechanism of its stable interest rate, speculators showed enthusiasm for renminbi; if we bought products provided by trading market with renminbi, leveraging investment could be added; PBOC’s pursuit of multi-goals leads to obstacles of renminbi internationalization. He stressed that China’s capital reform faces major difficulties which were about operating but development direction; we should not forget our initial purpose, get back to the original track, update our system and stick to the direction.
Wu Qing
Ying Zhanyu, Assist Dean of Institute of Finance of Central University of Finance and Economics, delivered a speech around the thinking of opening of Chinese capital market and its risks. He thoroughly analyzed the opening of Chinese capital market from three aspects—the opening strategy of capital market, necessity of opening and risks, and the regulation of capital market. He stressed that, opening Chinese capital market was not a goal, but a means to develop China’s financial sector and transform its economy. From the financial aspect, we should adapt to the emerging of major countries; advancing renminbi internationalization and capital opening were the prerequisite of reserve currency. He pointed out that, actually capital control become an implicit guarantee provided by the government for investors in A share market, changed Chinese investors’ behaviors and become one of those major factors affecting pricing fluctuation. He concluded that the strategy of gradual opening of Chinese capital market is a practical choice.
Ying Zhanyu
Guan Qingyou, Vice President of Minsheng Securities made a speech themed with addressing the relationship between financial freedom and financial supervision. He stressed that financial liberalization and financial supervision did not contradict each other but enhanced each other; if financial liberalization deepened, the boundaries of supervision should be clearer and enforcement should be stricter. He thought that, low level of liberalization led to “credit two track” problem; the liberalization of securities of securities market was related to the economic restructure; only if we broke down the link of government, bank and industry, we could restructure our economy; securities liberalization was essential to lowering systematic risk of banking and the basis of opening capital accounts. He stressed that sectors concerning public capital and systematic risk, and shared some views about the definition of boundary of financial liberalization and supervision on financial market.
Guan Qingyou
Hong Hao, General Manager of BOCOM International, made remarks on the theme of the influence of the opening of Chinese capital market on global capital market. He thoroughly analyzed macro-economic changes and exchange rate indicators as well as indicators of financial market. It showed China’s influence of the Chinese economy, especially on the world. It also showed that China’s status was rising in financial market and explained the trends of exchange rate of China and Japan and how such trends could influence financial markets, and the influence of change of renminbi exchange rate on China’s stock market.
Hong Hao
Chen Qiqing, Director of Micro-economic Department of Party School of the CPC, delivered a speech with the theme of two-way opening of Chinese capital market. He thought that, China should speed up foreign investment, advance two-way opening of capital market and change two-out strategy into two-in strategy: foreign companies go public in China and foreign capital flow into China. He quoted Xi as saying “the direction of future reform and development shows the ability of financial service-oriented real economy and allocation of global resources”. He said that, in terms of political and economic trends, capital introduction through capital market should be become a point of China’s future development.
Chen Qiqing
In the end of the forum, scholars carried on the discussion on Chinese capital market: opening, risk and regulation.
Part of scholars on the Forum
