La traduction Google du chinois à l’anglais de la lettre d’avertissement du président de la banque Centrale Chinoise, la PBOC .
Finance is an important national core competitiveness. The CPC Central Committee places great importance on preventing and controlling financial risks and ensuring financial security. Since the 18th CPC National Congress, under the leadership of the Party Central Committee with Comrade Xi Jinping as the core, facing the harsh challenges of the international financial crisis and the « three superpositions » of the domestic economy, the financial system has vigorously promoted reform and innovation and earnestly stepped up macro-control and Financial supervision and control, the strength of financial institutions, the increasing abundance of financial products, the increasing inclusiveness of financial services, the gradual improvement of multi-level financial markets, the perfecting of financial infrastructures and the remarkable ability to prevent and control risks in the financial system. Demands of the 19th Plenum of the Party, « deepen the reform of the financial system, enhance the ability of the financial services to support the real economy, increase the proportion of direct financing, promote the healthy development of a multi-level capital market, improve the dual-pillar regulatory framework for monetary policy and macro-prudential policies, deepen the interest rate and exchange rate markets Improve the reform of the financial regulatory system to maintain the bottom line of systemic financial risk does not occur. This is the fundamental requirement of Xi Jinping’s socialism with Chinese characteristics in the financial field in the new era. It is a scientific arrangement combining the general law of financial development with the practice of China’s financial reform. It is a guide for guiding the steady and stable development of the financial reform, The basic work to follow.
First, take the initiative to prevent and control systemic financial risks rely on accelerating the financial reform and opening up
At the Fifth National Financial Work Conference held in July this year, General Secretary Xi Jinping made a series of major judgments, important decisions and clear demands on financial work: « Since the 18th CPC National Congress, China has made new financial reform and development Great achievements.Reviewing the development of China’s financial industry since the reform and opening up, we must deepen the reform to solve the problems that affect and constrain the development of the financial industry. « » Expanding the opening up of finance and optimizing and prospering through competition. « » Preventing systemic financial risks Is the fundamental task of financial work, but also the eternal theme of financial work .We must take the initiative to prevent and defuse systemic financial risks in a more important position. » To deal with systemic risk, the theme is prevention, the key is initiative. Reform and opening up are the historical experience and future choices of taking the initiative to prevent and defuse systemic financial risks.
(I) Reform and opening up improve the overall health of the financial system
First, the basic financial system is gradually improved. Since the reform and opening up, especially the 18th CPC National Congress, China’s monetary policy and financial regulatory system have been based on their national conditions and are in line with international standards. They have also explored the framework for building a macroprudential policy, establishing a deposit insurance system and strengthening the ability to prevent and control systematic risk shocks. The « Four Beams and Eight Pillars » of stock markets, bond markets, derivatives and various financial market infrastructures have all been completed and the market capacity ranks among the highest in the world.
Second, the renminbi internationalization and the two-way opening up of the financial industry have contributed to the continuous improvement of the financial system. RMB join the IMF special drawing currency basket, China’s participation in the international financial governance status significantly improved. Some international financial institutions have also taken part in the financial industry in our country, promoted competition in financial markets, enhanced the operation level and risk-resistance capabilities of domestic financial institutions, and made positive progress in the « going global » of domestic financial institutions. At present, all four major banks in China’s Workers and Peasants’ Systematic Importance Financial institutions, the banking sector’s low non-performing asset ratio, high capital adequacy ratio and profitability are among the highest in the world.
(B) Reform and opening up to promote the structural optimization of financial institutions and markets
The financial system practiced the development concept of « innovation, coordination, greenness, openness and sharing », deepened the marketization of interest rates and exchange rates comprehensively, focused on perfecting the corporate governance of financial enterprises, actively and steadily encouraging the innovation of financial institutions and financial products and services, Promote multi-level capital market construction, introduce and nurture diversified market players, and significantly improve the economic efficiency and risk-resistance capability of service entities. The stock of social financing increased from 76.7 trillion yuan in 2011 to 156 trillion yuan in 2016, and the direct financing ratio increased from 15.9% to 23.8%. With the steady compliance of traditional businesses such as deposits and loans, bond transactions and other traditional businesses, the financial industry has reached a higher level with the chaotic situation such as the book-lending operation, misappropriation of client funds and the indiscriminate collection of funds in the early stage of the reform and opening up Access, and more extensive participation in international and domestic financial markets stage.
Second, to prevent systemic financial risks is the eternal theme of financial work
(A) Accurately determine the current financial risks facing our country
General Secretary Xi Jinping repeatedly emphasized: « Financial security is an important part of national security. Accurately judging potential risks is a prerequisite for ensuring financial security. » Overall, the financial situation in our country is good. However, at present and for a period in the future, China’s financial sector is still in a period of high risk-prone period. Under the pressure of multiple factors at home and abroad, the risks are wide and varied, presenting invisibility, complexity and suddenness Sexual, contagious, harmful characteristics, prominent structural imbalances, illegal and disorderly chaos, potential risks and hidden dangers are accumulating, and the vulnerability obviously increases. It is necessary to prevent the occurrence of the « Black Swan » incident as well as to prevent the risk of « gray rhino » occur.
First, the macro-level financial high leverage and liquidity risk. High leverage is the general source of macro-financial fragility, manifested in the real sector as over-indebtedness and in the financial sector as an excessively rapid expansion of credit. As of the end of 2016, China’s macro leverage ratio was 247%, of which the corporate sector leverage reached 165%, higher than the international warning line. Some state-owned enterprises have outstanding debt risks and the market for « zombie enterprises » has been slow to be cleared. Some local governments also leveraged various types of « name shares » and purchase services. The abnormal volatility of the stock market in mid-2015 and the real estate price bubbles in some cities are directly related to the leveraged action such as over-arching of funds, the structuring of bonds and the rapid development of real estate credit. Some high-risk operations under the guise of « financial innovation » have helped to promote the buildup of bubbles in multiple markets. The sluggish international economic recovery and the spillover effect of the major economies have also exposed our country to external shocks such as cross-border capital flows and exchange rate fluctuations.
Second, the credit risk of financial institutions at the micro level. In recent years, non-performing loans have risen, eroded banking capital and risk resilience. The credit defaults on the bond market increased markedly, and the bond issuance declined. Credit risk has a considerable impact on society and even overseas confidence in the health of my financial system.
Third, cross-market cross-regional cross-regional shadow banking and criminal activities risk. Some financial institutions and enterprises to use regulatory gaps or defects, « playing the ball » serious arbitrage. Multi-layered wealth management business, asset liability maturity mismatch, the existence of implicit rigid payment, liability and rights distortions. Various types of financial holding companies have developed rapidly. Some industrial enterprises are keen to invest in the financial industry and earn quick money through insider trading and related party transactions. Some Internet companies in the name of inclusive finance, the practice of the Ponzi scheme, online and offline illegal fund-raising multiple, unauthorized diversion of trading venues, easily induced cross-regional mass incidents. A small number of financial « predators » conspired with « inner ghosts » who have the power to supervise and approve their rights of appraisal. They seized the fire and transported interests. Some supervisory cadres were captured by regulators and the protection of consumers’ rights and interests in financial investors was not yet in place.
(B) the scientific analysis of the causes of financial risk
General Secretary Xi Jinping pointed out profoundly: « Through the nature of phenomena, the current financial risk is the inevitable consequence of the superimposition of resonance between structural and economic factors in the financial and economic fields. » Specifically, the current hidden risks in financial risks are the mirror images of structural imbalances in the real economy, counter-cyclical regulation and control, inadequate opening up of financial enterprises and the financial industry, and defects in regulatory system and mechanism.
First, the macro-control and financial regulatory system led to the risk of systemic. In macro-control, the effective control over the « gate of money » has been disrupted. During the gestation period of risk, there is a high enthusiasm for the industry and the local to pursue growth. Objectively, it is hoped that the « monetary policy » will be relaxed and the overall financial activities will be more active. The growth of the total monetary and social financing will tend to mislead the market players and breed asset bubbles. When risk accumulation reaches a certain level, financial institutions and market affordability are approaching a critical point, all parties also call for an increase in money supply to rescue them. Macro-control is difficult to correct the time window. On the regulatory system and mechanism, under the situation of rapid development of new products and institutions in new industries and institutions, and more frequent cross-border, cross-sectoral, cross-regional and cross-border transfer of financial risks, the issue of inadequate regulatory coordination mechanism has become more prominent. Regulatory positioning is not allowed, emphasis on industry development, neglect of risk prevention and control. The supervision methods of « railway police, one section of each tube » lead to inconsistent supervision rules of the same kind of financial business and encourage supervision of arbitrage. Systematic Importance Financial institutions lack co-ordination and financial holding companies have a regulatory vacuum. Statistics and infrastructure have not yet been centralized and unified, increasing the difficulty of systematic risk assessment. The central and local financial regulatory functions are not clear, and some financial activities are free from financial regulation.
Second, the mechanism of governance and opening up the flaw caused the risk prone to multiple. In corporate governance, the state-owned financial capital management system has not been fully rationalized, the role of capital in covering risks has not been sufficiently reflected, the corporate governance of financial institutions is still not perfect, the offsides or insider control of shareholders are common, and the development strategies, Risk culture and incentives distorted. In opening up, protectionism in some industries is still prevalent. The financial regulatory regime is lagging behind the internationally accepted standards. Insufficient financial institutions are competitive and risk pricing is weak. Financial markets can not effectively control herding, asset bubbles and financial risks. Domestic and foreign markets are not connected, domestic and foreign spreads also create arbitrage opportunities, and some institutions tend to cross-border speculation rather than solid business.
Third, prevention and control of financial risks should be based on both the symptoms and the root cause, taking the initiative to attack and defend and actively respond to both
To scientifically prevent and control risks and handle the dialectical relationship between the symptoms and the root cause, we must grasp the following four basic principles: First, return to the original source, obey the service to economic and social development, and avoid the financial blunders from inflating and enlarging and diffusing the virtual and self-cycle risks. Second, optimize the structure, improve the financial institutions, financial markets, financial products system, consolidate the micro-foundation to prevent and control risks. Third, we will strengthen supervision and improve our ability to prevent and mitigate financial risks, so as to minimize the impact of financial risks on our economy and society. Fourth, market orientation should give full play to the decisive role of the market in the allocation of financial resources and reduce the distortions in market mechanisms caused by various interventions.
(I) Adhere to the issue-oriented and promote the reform and opening up of financial institutions and financial markets
First, enhance financial services to the real economy. Financial and real economy is a symbiotic and prosperous relationship, serve the real economy is the foundation of financial business, but also the fundamental measure to prevent financial risks. Create a favorable monetary and financial environment for the development of the real economy. We should focus on strengthening and improving financial regulation and control, stick to the structural reform of the supply-side as the main line, take the solution to the financing difficulty in financing as the starting point, and strengthen the coordination and cooperation between monetary policy and other relevant policies. Livelihood, risk prevention and other aspects of the formation of regulation and control force. Return to the financial services entity economy origin. The financial industry should focus on the main industry, pay attention to the development of inclusive finance, science and technology finance and green finance, and guide more financial resources to key areas and weak links in economic and social development. Strengthen the main responsibility of financial institutions to guard against risks. It is necessary to shape the balance sheet health of financial institutions, but also to promote the health of corporate governance, internal control system, complex financial products transactions clearing. It is necessary to strictly control market access, strengthen the qualification management of shareholders in financial institutions, prevent the transfer of benefits, conduct internal transactions and intervene in the operation of financial institutions. Establish and improve the regulation and supervision of financial holding companies, strictly limit and regulate non-financial enterprises to invest in financial institutions, and isolate the industrial and financial sectors from the system. Promote the reform of corporate governance in financial institutions, effectively assume risk management and curb the principal responsibility for the breach of major cases.
Second, deepen the reform of financial markets and optimize the structure of social financing. Actively and orderly development of equity financing, steady increase in the proportion of direct financing. Expand multi-level, diversified and complementary equity financing channels, reform the system of stock issuance, reduce the intervention of market prices (indices) and eliminate the transfer of benefits and the breeding of corruption from the root causes. Strengthen the protection of the rights and interests of small and medium-sized investors and improve the market-oriented M & A mechanism. We should make good use of the market-based legalization of debt and equity swap instruments and the development of diversified investment entities such as private equity funds (PEs) so as to help enterprises to reduce their leverage ratio and promote the clearing of the « zombie enterprise » market. Actively develop the bond market, expand the scale of bond financing, diversify the bond market, and standardize the supervision so as to better meet the financing needs of different enterprises for debt issuance. Deepen market interconnection and improve financial infrastructure. Expand the risk protection function of the insurance market and guide the healthy development of the futures market.
Third, we will continue to expand the opening up of the economy to competition and promote optimization and prosperity. Understanding of the significance of opening to the outside world from a higher level, adhering to the general direction of expanding opening up and constantly promoting relevant policy reforms to better realize the opening up of the « Troika »: First, the opening up of trade and investment. The second is to deepen the reform of the RMB exchange rate formation mechanism, it is necessary to actively and steadily promote, but also take advantage of the trend, come into doubt. Third, we will reduce foreign exchange controls, steadily promote the internationalization of the renminbi, facilitate foreign economic activities, and make the capital account convertible in a safe and orderly manner. At the same time, on the premise of safeguarding financial security, we should relax restrictions on market access for overseas financial institutions and promote the further integration of financial market regulation with international standards on the basis of national conditions.
(B) adhere to the bottom line thinking, improve the financial management system
First, to strengthen and improve the macro-control functions of the central bank and improve the dual-pillar regulatory framework for monetary policy and macro-prudential policies. As the leverage, relevance and complexity of our financial system continue to improve, it is better to combine monetary stability with financial stability. Monetary policy mainly focuses on the overall economy and the total amount of issues, maintaining steady economic growth and basically stable prices. Macro-prudential policies act directly and intensively on the financial system to reduce the systemic financial risks caused by the cyclical fluctuations in the financial system and cross-market risk contagion.
Second, improve the financial regulatory system, strengthen co-ordination and coordination. Central regulatory authorities should co-ordinate and coordinate. The State Council’s Financial Stability Development Committee will be established to strengthen the macroprudential management and systemic risk prevention responsibilities of the PBC and earnestly implement the departmental supervisory responsibilities. Make full use of the institutions and strength of the PBC to coordinate systematic risk prevention and control with the supervision of major financial institutions and to supervise and control important financial institutions such as integrated financial holding companies and cross-market cross-regional and inter-regional financial products, clearly regulate the regulatory body, Infrastructure, integrated financial industry statistics, the full establishment of functional supervision and behavior supervision framework, strengthen the comprehensive supervision. Co-ordinate policy efforts and rhythm to prevent superposition resonance. Central and local financial management should be coordinated and coordinated. We must give play to the enthusiasm of both the central government and local governments and make a nationwide move without any dead ends. The Central Financial Regulatory Department conducts unified supervision and guidance, formulates a unified regulatory framework for financial markets and financial operations, and supervises and rectifies accountability for local financial supervision and control. Local governments are responsible for the prevention and control of risk by local financial institutions and maintaining the financial stability of their territories. They must not interfere with the autonomous operation of financial institutions. Strict supervision of licensed agencies and resolutely ban illegal financial activities should be coordinated. Financial regulatory authorities and local governments should strengthen the control over the sources of financial risks and insist that the financial industry is a franchised industry and that they should not operate without licenses or operate beyond their scope. In the meantime, it is necessary to tackle the illegal financial activities that have seriously disrupted the order in the financial markets such as illegal fund-raising and the indiscriminate sale of places where financial institutions mess with their peers, chaos and leverage, engage in off-balance sheet operations and arbitrage violations. Steadily and orderly promote the special rectification of Internet financial risks. Regulatory authority and responsibility should be coordinated and coordinated. Establish layers of responsible business supervision and accountability system.
(C) strengthen the leadership of the party to ensure the correct direction of financial reform and development
The 19 th National Congress of the CPC made clear the top-level design of the financial reform and opening up and the prevention of systemic risks. We must uphold the central leadership’s unified and unified leadership over financial work, enhance the « four awareness, » implement the requirements of being strictly party-ruled and ensuring the financial security of the country.
First, follow the Party Central Committee decision-making to implement the work plan. We should establish a global perspective and cooperate with each other. We will resolutely implement the major guidelines and policies in the financial field, make major reforms and opening up strategies and plans, and carefully organize and implement various measures for financial regulatory reform, financial institutions reform, financial market reform and the prevention and control of financial risks.
The second is to strengthen the leadership of the financial system and party building. The leadership of the party and the corporate governance of financial enterprises must be integrated, and the entire process of corporate governance must be implemented. At the Antalya Summit of the Group of Twenty Leaders, the « G-20 / OECD Corporate Governance Principles » were reviewed and passed. We have the conditions to promote reforms and innovations and form a corporate governance mechanism for financial enterprises in line with China’s national conditions.
Third, implement the principle of party management cadres and give play to the superiority of party management personnel. The financial industry is a talented and intellectually intensive industry. There are excellent management personnel, financial resources allocation and risk management efficiency can be improved. With excellent supervisory talent, financial security can be guaranteed. We will build a leadership system for the financial system and build a contingent of highly qualified financial professionals with excellent political skills, good work style and good business practices.
Standing at a new historical starting point, the financial system should firmly implement the party’s nineteenth congress, unite itself more closely around the party Central Committee with Comrade Xi Jinping as the core, comprehensively implement the party Central Committee’s strategic plan, follow the rules of financial development, deepen financial reform, Improve the economic capability of financial services entities, promote a virtuous circle of economy and finance, and develop in a healthy manner, so as to guard against systemic financial risks.