——Insurance funds actively participate in the financial supply-side structural reform
The current focus of financial work is to deepen the financial supply-side structural reform and enhance the ability of finance to serve the real economy. As important institutional investors in the capital market, insurance asset management institutions should adhere to the concept of long-term value investment, follow their own development laws, give full play to their own characteristics and advantages, and improve the multi-level capital market, increase the proportion of direct financing, support the development of emerging industries, and cultivate play a greater positive role in the new momentum of economic growth.
Practice long-term value investment
The rapid development of the financial industry in the past few decades has supported the long-term high investment and high growth of the Chinese economy. In this process, a financing structure dominated by credit and debt gradually formed, with a smaller proportion of long-term capital and equity financing, and a relatively single financial supply. At present, China's economy is moving towards a stage of high-quality growth, and the demand for financial resources is also changing, including the need to improve the quality of financial supply to technological innovation enterprises and small, medium and micro enterprises, to meet the financing needs of the private economy, and to meet the diverse needs of residents. diversified wealth management needs, etc. The above-mentioned financial structure developed based on the traditional debt financing model is obviously unable to fully meet the needs of economic transformation and upgrading.
This is mainly reflected in two mismatches of financial resources: one is the term mismatch, the source of funds has a short term, the use period of the funds is long, and the investment lacks long-term tolerance, resulting in increased market volatility and "short borrowing". Problems such as the prevalence of "long-term"; the other is structural mismatch, with less equity financing, more debt financing, and lower financial risk appetite, which also brings about problems such as excessive debt leverage and excessive financing costs.
In this context, the central government has proposed to promote financial supply-side structural reform, which is essentially consistent with the supply-side structural reform carried out in the macroeconomic field, both through technological innovation, policy guidance, etc. "Combined punch" to improve the quality of the supply system and improve the structure of the supply mechanism, thereby eliminating various imbalances, promoting the matching of supply and demand, and ultimately optimizing the financial structure.
Focusing on "structural", we can understand financial supply-side reform from two aspects: first, introducing long-term funds and optimizing the term structure; second, guiding various types of funds to increase equity investment and improve Financing Structure. Whether it is infrastructure construction to make up for shortcomings or the continued cultivation of strategic emerging industries, it is inseparable from the optimization of the financial structure in these two aspects.
The experience of mature markets in Europe and the United States shows that long-term, institutionalized capital is the key basic element of a stable, orderly, and efficient financial system. Vigorously developing institutional strength to provide long-term funds for the financial market can effectively smooth out capital market fluctuations, eliminate the mismatch of funding periods in my country's financial system, and respond to and resolve the downward pressure on the economy over a longer period of time, thereby in exchange for economic renewal. Momentum has more room for cultivation and growth. Therefore, my country's financial supply-side structural reform cannot be separated from the large-scale and in-depth participation of long-term funds such as insurance funds, corporate annuities, and pension insurance.
Insurance funds insist on long-term value investment and increase equity investment, which will also help the transformation of financing models from indirect financing to direct financing, reducing the real economy's dependence on debt financing from the source. From an enterprise's perspective, funds raised from equity financing usually have no fixed term and can be regarded as long-term capital, which can support the enterprise's investment in long-term fields such as technological research and development and technological upgrading, and support the expansion and growth of the enterprise; from the investment return of insurance funds From a perspective, insisting on long-term value investment and investing in high-quality listed companies through new stock IPOs, private placements, and long-term equity investments can obtain higher returns. In the case of downward long-term interest rates, the investment income of the overall portfolio of insurance funds can be formed. Useful supplement.
Increase the innovative application of financial technology
The reason why we promote "structural" reform shows that financial resources are sufficient in terms of "quantity", but in terms of "quality" And there are some shortcomings in "efficiency". The "quality" problem is mainly reflected in the inability of financial supply to meet the current economic development needs in terms of term and structure; the "efficiency" problem is mainly reflected in the inability of financial supply to quickly adapt to changes in demand, and the inability of financial elements to quickly sink to the demand entities. For example, how to improve capital market pricing efficiency and how to use technological means to accelerate the development of inclusive finance.
The financial industry is an industry that collects data, processes data, and uses data. In this era of big data, the key manifestation of supply-side structural reform in the financial field is the development and application of financial technology. Technological innovation is used to promote the supply-side structural reform of financial services and improve the efficiency of financial services, thereby further consolidating my country's economic and financial high The basis for quality development.
The most important component of the financial supply-side structural reform is to provide financial support to small and micro enterprises and private enterprises. Due to its high security requirements, insurance funds are less involved in small and medium-sized enterprises and private economic fields. The important reason is that this part of the market has a large number of entities and complicated information, including information asymmetry such as insufficient data disclosure and imperfect credit reporting systems. problems, which restrict the investment of insurance funds. In this regard, we can rely on technological development, actively introduce and use financial technology means, continuously expand financial service channels, reduce financial service costs, promote the development of inclusive finance, and strive to improve the efficiency of financial support for the real economy.
This is also the starting point and entry point for the in-depth integration of insurance funds and financial technology.
Specifically, insurance funds can use new technologies and new methods such as big data, blockchain and artificial intelligence to use higher-dimensional information processing capabilities to integrate the huge production, finance and other types of small and medium-sized enterprises. Information, use broader data analysis capabilities to see through "alternative" data such as the personal situation of private entrepreneurs and changes in upstream and downstream suppliers, use faster market perception capabilities to strengthen the timely management and control of business risks of small and medium-sized enterprises, and ultimately use it more deeply The logical mining capabilities form an effective model for insurance funds to provide financial support to small and medium-sized enterprises and the private economy. By using financial technology to strengthen the credit identification of small and medium-sized enterprises and select high-quality enterprises for investment, this will not only help insurance funds optimize the allocation structure of large categories of assets, but also further promote insurance funds to support the development of the private economy.
Actively participate in science and technology innovation board investment
Under the new normal, new driving forces represented by technological upgrading and technological innovation will become the main force in promoting economic growth, thus supporting the accelerated development of emerging industries. It has become a key starting point for insurance funds to participate in the structural reform of the financial supply side.
On the one hand, emerging industries have a long cultivation cycle from conception to maturity and require long-term and stable financial support. Taking the United States as an example, since pension plans were allowed to invest in emerging industries and venture capital companies in 1978, the proportion of pension funds in equity investment funds has gradually increased, and by 2017 the proportion had reached 34%. On the other hand, there is huge potential space for investment in emerging industries, which can meet the allocation needs of insurance funds. Still taking the United States as an example, emerging industries such as IT and biomedicine have good investment return prospects, so they are absolutely favored by various funds. They accounted for 60%-70% of the distribution of equity investment funds in 2018.
In recent years, as the scope of investment has gradually broadened, insurance funds have deeply supported the development of the real economy through various channels. Specifically in the field of emerging industries, insurance funds can directly participate in high-quality target investments in the primary market through Pre-IPO, private placement, direct equity investment, PE funds, etc., or they can buy and hold high-quality target stocks through the secondary market. As an important part of the financial supply-side structural reform, we are vigorously promoting the construction of a multi-level capital market represented by the Science and Technology Innovation Board. This will undoubtedly further enrich the choices of targets, models and exit paths for insurance funds in the process of investing in emerging industries. Improve its closed loop investment in technological innovation enterprises. Generally speaking, the market-oriented mechanism design of the Science and Technology Innovation Board gives capital the pricing power over technology. Long-term institutional investors such as insurance funds can more closely integrate their own advantages and needs into their strategies by investing in the Science and Technology Innovation Board, and support the transformation of economic structure. In the process, we can better share the long-term dividends of reform and innovation.
(Source of article: China Securities Journal) Solemn statement: The purpose of publishing this information is to spread more information and has nothing to do with the position of this site.