Roundtable on Money and Finance · Spring 2019
2019-05-11 IMI
Zhuang Yumin made an opening speech, extending welcome to all guests present. Then she introduced the latest development of the School of Finance.
Chen Weidong delivered a keynote speech with the theme of “Focus of Financial Supply-side Structural Reform”. He pointed out that China’s financial industry still focused on banking after a decade’s rapid development. In the development process, China’s banking industry paid more attention to scale expansion, which led to the “homogeneity” of banks. The rapid expansion of banks’ scale also led to the inefficiency in the financial industry. Potential risks lay in excessively growing financial institutions and lack of supervision in new business types. Chen Weidong mentioned two objectives of financial supply-side reform. One was to propel financial industry to effectively serve the real economy; the other was to build a financial development path with Chinese characteristics. In the future, theoretical research should focus on three aspects: determining the level of macro leverage ratio, the structure of indirect and direct financing, and stable and effective market structure.
Wu Xiaoqiu pointed out from the perspective of financial basic function theory that we should dynamically understand the financial supply-sidestructural reform, among which reform, innovation and technological breakthrough werethe linchpin. At different stages, the basic functions of finance such as payment and settlement, resource allocation and risk management were different. This was the law of financial development and the theoretical source of reform. To propel the reform, we need to develop the capital market and build a modern financial system.
Liu Qingsong delivered a speech on the theme of “Promoting the Construction of a High-Quality Capital Market”. He said that there were many problems in China’s capital market, including the imbalance of supply and demand of market resources, constrained transaction and high cost, insufficient relevant institutions in capital market, imperfect rule of law in market and so on. In the future, to promote the construction of high-quality capital market, we must uphold the principles of marketization, rule of law, and internationalization. In terms of risk prevention, we should take the prevention and control of “systemic” risks as the core.
Dong Ansheng elaborated on reforms of the bond market and China’s financial market. He thought that the focus of the financial supply-side reform was reforms of the stock, bond and bill systems. The important role of the bond market and short-term fund market in the capital market should be fully exerted. Dong also pointed out that bond market’s development required sound systems and rules, including block trading system, derivatives trading system, derivatives rules, negotiable instruments law and so on.
During the roundtable discussion, they discussed the content and methods of financial supply-side reform, the relationship between financial supervision and market innovation, deleverage, Fintech, financial operation mode andother issues.
