Regarding the recent development of digital currency, Yin Yong, vice mayor of Beijing, said that Beijing will make use of scenes such as the Winter Olympics to try first in frontier areas such as digital currency. With regard to the capital market, Fang Xinghai, vice chairman of China Securities Regulatory Commission, believes that the market of "short bull and long bear" in China is disappearing, which will further expand the investment scope and target of Shanghai and Shenzhen stock markets. Regarding the real estate market, Liang Zhou, vice chairman of the China Banking Regulatory Commission, said that it is necessary to prevent the real estate market from being over-financialized and the shadow banking from rebounding.
The following are the highlights of the speech.
Yin Yong, Vice Mayor of Beijing: Beijing will make use of scenes such as the Winter Olympics to try first in frontier areas such as digital currency.
Yin Yong said that Beijing will build an international financial science and technology innovation center around the digital economy and digital financial supervision technology, carry out the sandbox pilot of financial science and technology supervision in depth, make use of scenes such as the Winter Olympics to try first in frontier areas such as digital currency, strive to achieve a leading breakthrough, support the research and development of underlying technologies of financial science and technology, expand application scenarios, promote data governance and infrastructure construction in the financial sector, and strengthen the creation and output of financial science and technology standards. We should constantly improve the financial market system.
Chen, deputy governor of the central bank: At present, the People's Bank of China is actively building a regulatory framework for the application of science and technology.
Chen said that at present, the People's Bank of China is actively building a regulatory framework for the application of science and technology, improving the basic regulatory rules system, striving to create a better environment for the development of financial science and technology, promoting the modernization of the financial service industry, and pushing China to move towards a financial power in the process of serving the world-class new industrial revolution.
Chen: The negative list of financial industry access has been cleared up.
Chen said that China has abolished the restrictions on the ratio of foreign shares in banking, securities and futures, fund management and other fields, greatly broadened the scope of business, reduced the restrictions on the size of assets, operating years and other shareholder qualifications, and at the same time granted national treatment to foreign investors in the fields of enterprise credit investigation, credit rating, payment and settlement, and actively promoted the international integration of accounting, taxation and trading systems. In the negative list of special management measures for foreign investment access released this year, the negative list of financial industry access was cleared up.
CBRC Liang Zhou: Prevent excessive financialization of the real estate market and prevent the shadow banking from rebounding.
Liang Zhou said that the CBRC will prudently handle high-risk small and medium-sized financial institutions, strictly follow the orientation of housing and housing, standardize the real estate loan business, and prevent excessive financialization of the real estate market. At the same time, it will also implement the requirements of the new asset management regulations to prevent the shadow banking from rebounding, and firmly hold the bottom line of financial risks without systemic financial risks by cracking down on illegal financial activities.
Liang Zhou: Guide all kinds of medium and long-term funds such as wealth management and insurance to enter the capital market.
Liang Zhou said that the CBRC will cultivate the distinctive advantages of non-bank financial institutions, put the development of direct financing in a more prominent position, vigorously develop the third pillar of endowment insurance in an orderly manner, and guide all kinds of medium and long-term funds such as wealth management and insurance funds to enter the capital market.
Fang Xinghai, Vice Chairman of China Securities Regulatory Commission: The "short bull and long bear" market in China is disappearing.
Fang Xinghai said that the concept of value investment is more consolidated, the investment behavior is more rational and the market valuation is more reasonable. The so-called bull is short and bear is long, which has long plagued the China stock market. In other words, the pulse market is disappearing, and a more rational market provides a foundation for the normal IPO issuance and investor protection.
Fang Xinghai: Further expand the investment scope and target of Shanghai and Shenzhen stock markets.
Fang Xinghai said: We should improve the product system that is open to the outside world, further expand the investment scope and objectives of the Shanghai and Shenzhen stock markets, broaden the interconnection of exchange-traded funds, and facilitate foreign investors to allocate stocks, exchange-traded funds and RMB bond assets.
Fang Xinghai: There is still great potential for China to open its stock market and introduce overseas funds.
As of September 3rd this year, the market value of shares held by foreign investors in China Stock Market through Shanghai-Shenzhen-Hong Kong Stock Connect was 2.0 1 trillion yuan, accounting for 3.28% of the market value of A-share circulation. If QFII and RQFII are added, the market value of China tradable shares held by all foreign investors is 4.69%. Fang Xinghai said that compared with Japanese and Korean stock markets, where the foreign shareholding ratio exceeds 30%, the foreign shareholding ratio in China's capital market is still very small, and China's stock market still has great potential for opening up and introducing foreign investment.
Kevin·Z, Deputy Director of the SAFE: The flexibility of RMB exchange rate has been continuously enhanced and maintained.
Kevin·Z said that in the first half of 2020, China's current account surplus was 85.9 billion US dollars; The scale of foreign exchange reserves has steadily increased. In the first half of the year, the scale of China's foreign exchange reserves was 3 1 trillion US dollars, an increase of 4.4 billion US dollars compared with the beginning of the year. At the same time, the flexibility of RMB exchange rate has been continuously enhanced and maintained, which has played the role of an automatic stabilizer for adjusting the balance of payments. In recent years, the rapid development of international trade in services has increasingly affected the current account of China's balance of payments, which has become an important driving force for the high-quality development of China's economy.
Kevin·Z: We will steadily expand the two-way opening and interconnection of financial markets.
Kevin·Z said, in the face of the complicated situation in which risks and challenges are obviously rising, the foreign exchange administration departments continue to deepen reform and opening up, constantly improve the management framework, steadily expand the two-way opening and interconnection of financial markets, steadily and orderly promote the convertibility of capital projects, constantly optimize the business environment in the foreign exchange field, ensure that legitimate funds can enter and exit, and financial and foreign exchange services can directly reach the real economy, which is conducive to the universal benefit of small and micro enterprises, and the role of financial support is increasingly prominent. At the same time, it has well maintained a benign market order, stabilized market expectations, and maintained a basic balance of international payments.