What Does China'S Interest Rate Marketization Mean?

What is the meaning of marketization of < p > < strong > /strong > < a > href= > http://www.91se91.com/news/index_cj.asp > strong > interest rate < /strong > /a > strong > marketization.

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< p > People's freedom of deposit, interest or higher countries will no longer reveal their risks. They must be conceited at risk. < /p >

< p > interest rate liberalization is at hand.

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< p > at the press conference of the two session of the twelve National People's Congress held today, Zhou Xiaochuan, governor of the people's Bank of China, said that the final release of deposit interest rate should be the last step in the marketization of interest rate. "I personally think that it will probably be achieved in the last one or two years".

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< p > why has the interest rate marketization been known for many years? Today, Wu Xiaoling, the deputy to the NPC and deputy governor of the people's Bank of China, analyzed and told the China Youth Daily reporter that the "hard constraint" on the market subjects in finance has become the consensus of reform.

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< p > < < a href= > http://www.91se91.com > > Finance > /a > institutions and state-owned enterprises are not responsible for their own profits and losses. Doing things without cost is a soft constraint.

Wu Xiaoling said that the hard constraint is to let market players be responsible for investment behavior and market behavior.

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< p > for a long time, "rigid payment" is a hot word in the financial industry.

The so-called rigid payment is that after the expiration of the trust product, the trust company must allocate the capital and income to the investors. When the trust plan fails to meet the payment or payment difficulties on time, the trust company needs to deal with it.

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< p > because of the existence of rigid payment, when investors choose the trust products, they often only compare the product's maturity and expected returns, ignoring the risks of trust products and the risks behind them. The myth of "zero risk and high return" leads to confusion in the market structure.

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< p > Wu Xiaoling reminded that rigid payment or implied rigid payment is still a problem. "There is no risk pricing, no a href=" http://www.91se91.com/news/index_s.asp "> risk < /a > Where is the interest rate marketization?"

< p > she believes that although there is a better foundation than the past, it is not entirely enough to have the conditions for the marketization of interest rates.

She said, many things complement each other, it is very likely that after the interest rate liberalization, the market players will be forced to do some hard constraints.

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What is the meaning of interest rate marketization to the common people? Wu Xiaoling said that people should change their past thinking of relying on the bottom of the country, and everyone is the first person responsible for the risk of their own wealth, so we should think about where the money is better than P.

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While P cheers interest rate liberalization, we must bear the consequences for our own financial choices.

Wu Xiaoling said, the future will give you the possibility of higher income choice, but it may earn or lose. This is the most basic rule of the market economy. High yield must be accompanied by high risk.

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< p > for SMEs with potential, Wu Xiaoling thinks interest rate marketization is good news, because these enterprises first consider not the level of capital price, but the possibility of obtaining capital.

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"P", for example, she said, for example, the interest rate of the loan is 6%, the risk of the small and medium-sized enterprises is large, and the banks are unwilling to lend to you. If I admit that I am very risky, but I am willing to give a 8% or even higher interest rate, then it is possible to get the loan.

He believes that, from this point of view, the possibility of obtaining funds for a promising small and medium-sized enterprise is increasing.

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< p > for private lending, Wu Xiaoling believes that the marketization of interest rates may raise the cost of private lending at the beginning, but after a period of market regulation, it will reduce the cost of social financing.

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< p > Wu Xiaoling said, when controlling, the folk a href= "http://www.91se91.com/news/index_cj.asp" > price < /a > is high. "Black market" is like this. When the peanuts were supplied at a limited time, the price of the black market would be high. Once the price was released, the price of "black market" would come down.

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