News (reporter & NBSP; ZAN Xiuli, Chairman of ZAN Xiuli, said, “At this new stage and starting point, the core of the capital market is to take solid steps to run its own affairs well. While developing steadily, we will better serve the high-quality development of the real economy.” Yi Huiman, chairman of the China Securities Regulatory Commission (CSRC), expounded on the role of capital markets in promoting high-quality development when delivering a keynote speech at the China Development Forum roundtable.
Experts interviewed by the journalists believe that how the capital market can better serve high-quality development is an important issue at present. It is not difficult to predict that in the future, the capital market will take the initiative in four aspects: supporting scientific and technological innovation, playing the role of hub, strengthening the construction of the investment end, and deepening two-way opening, and become an important force to promote high-quality economic and social development.
Supporting scientific and technological innovation
On the new journey of the Chinese economy, innovation-driven development has been given a prominent position. In addition to capital support, scientific and technological innovation is more important to fully stimulate people’s enthusiasm and creativity, Yi said. The unique risk sharing and benefit sharing mechanism of the capital market can effectively solve this problem, so as to accelerate the formation of innovative capital, promote the high level circulation of science and technology, capital and industry, and promote the upgrading of industrial base and the modernization of industrial chain.
Looking ahead, experts believe that capital markets can play an active role in supporting technological innovation and building a modern industrial system. To further strengthen the capital market’s support for the development of science and technology by unimpeding the listing channels of science and technology enterprises and enhancing the inclusiveness of listing conditions.
Dong Dengxin, director of the Institute of Finance and Securities of Wuhan University of Science and Technology, suggested that the unique advantages of risk sharing and benefit sharing in the capital market should be further exerted to fully stimulate the innovation and creation vitality and accelerate the transformation of scientific and technological achievements into realistic productive forces. To deepen supply-side structural reform, we should give better play to the role of the capital market as the main channel for mergers and acquisitions and reorganizations, promote the integration and innovation of factors and resources, promote the optimization and upgrading of industrial chains and supply chains, and help achieve a higher level of dynamic balance in which demand leads supply and supply creates demand.
In fact, the chairman of Oriental Fortune believes that innovative enterprises represented by technology enterprises generally have the characteristics of light assets, weak profits and high investment at the early stage of growth, and the enterprise development is uncertain, which makes it more difficult to obtain bank loan support. After the registration system is implemented, the financing environment for innovation-oriented enterprises will be further improved, providing innovation momentum for high-quality development.
Activate hub function
Experts also pointed out that the capital market can play an active role in improving the financial system and promoting the stable operation of the macro economy, and further play the hub function of the capital market in resource allocation, policy transmission, risk mitigation, expectation guidance and other aspects.
“Capital market plays an important role in financial operation.” Dong Dengxin pointed out that the capital market should further play its pivotal role in resource allocation, policy transmission, risk mitigation and expectation guidance, smooth the transmission mechanism of monetary policy and enrich the ways of macroeconomic governance. We will vigorously increase the proportion of direct financing, especially equity financing, make the financial system more adaptable, and help stabilize the macro leverage ratio and guard against systemic financial risks.
“We need to use all kinds of market-based mechanisms, such as equity and debt investment and financing, mergers and acquisitions and reorganizations, to give full play to the decisive role of the market in resource allocation, accurately and efficiently convert all kinds of funds into capital, promote the coordinated concentration of factors of production in areas with the greatest potential, and improve the quality and efficiency of factors of production allocation.” Yi Huiman pointed out in his speech.
We will strengthen the construction of the investment side
In addition, experts believe that the capital market can play a proactive role in meeting residents’ needs for wealth management and promoting shared development.
Especially when it comes to going to be full, the future will focus on information technology industry based on China’s national conditions, promote the industry correct cultural concept, improve professional ability, improve performance, optimize the business structure, reflect different development path, real investors trust, do their own value and investors growing together, structure improvement for the investors to make greater contributions.
Tian Lihui, dean of the Institute of Financial Development of Nankai University, said that, on the one hand, the wealth management transformation of domestic securities companies is in the initial stage, and the active management ability of asset management business is not strong, so securities companies should greatly improve the service level and vigorously develop the wealth management business. On the other hand, we should support local institutions in their efforts to build world-class investment banks and wealth management institutions, and continue to encourage and support foreign financial institutions to establish or control securities, fund and futures institutions. We will further strengthen the investment side of the capital market, improve the old-age care financial system, and provide more channels for people to increase their income from property. We will encourage more people to properly convert their savings into investment, so that the dividends of economic growth will be more fairly shared by the people.
“We should strengthen the wealth management function of the capital market, optimize the institutional investment system of various types, and promote the effective conversion of household savings into long-term capital.” Yang Chengsheng, chief economist of Shenwan Hongyuan Securities Research Institute, believes that the asset management market should provide a large number of long-term financial investment products with stable expected returns. In the past, the capital market paid more attention to the financing side, but now it pays more attention to the investment side, that is, residents need appropriate products, and financial institutions also put financial products in a more prominent position. The capital market is gradually strengthening the management and guidance of residents’ allocation investment, advocating that all investments should not be put in the same basket, so that the investment yield of financial products can match the risk and liquidity.
“Policies should be adopted to make investment in the primary and secondary markets, bonds, money markets and real estate form a graded proportion of the investment structure, so as to promote the conversion of household savings into investment.” Yang growth further said.
Deepening high-level two-way opening up
Experts pointed out that the capital market can also play an active role in promoting the construction of a new system of high-level open economy and promoting the “double cycle”.
“The door of China’s economic opening-up will only open wider. Capital market is an important window for China’s economic depth into the world economy, to adhere to the overall development and security, to promote reform, open two-way open, continue to deepen the high level to further improve the system of cross-border investment and financing, to promote domestic demand and foreign demand, import and export, the coordinated development of foreign investment and foreign investment, boost domestic and international circular effective cohesion and promote each other.” Tian Lihui said.
Boc securities chief economist global Mr Guan advice, further strengthen the bond market based system construction in our country, such as the bond market’s connectivity, a unified information disclosure standards, improve the bond default disposal mechanism, varieties, rich in the bond market, bond market resource allocation efficiency, increase liquidity, to better meet the needs of open, to better support the internationalisation of the renminbi.
“On the two-way opening of the capital market, institutional opening will be an important starting point. We should continue to expand our institutions, products and industries to bring them in line with international norms and regulations.” Dong Dengxin suggested.
“Going forward, we will adhere to the opening of the capital market to the outside world, and take an open and supportive attitude towards the establishment of institutions, business operations and products. But at the same time, we also need to balance opening-up with risk prevention.” Yi Huiman pointed out.