After The Stock Market Crash, It Is Obvious That Financial Reform Should Be Orderly.

After the adjustment of the stock market, we must promote reform.

Over the past month, the A share market has seen a "stock market crash".

During the period, the Shanghai Composite Index dropped by more than 30%.

But with the government's effective rescue policy, the market has stabilized.

However,

The impact of volatility on the financial system has already been generated, and the cost of rescuing the market is not small.

The occurrence of the stock market crash and the problems of shadow banking, shortage of money, financing difficulties and expensive financing in recent years make people look at the financial reform in recent years with suspicion.

After all, the core risk points of these stock market disasters, such as the two fusion of brokers and the OTC capital allocation, are all the result of financial innovation.

However, as in other fields of reform, financial reform should not go backwards, nor can it go backwards.

On the contrary, the stock market crash has highlighted the importance of deepening financial reform.

Paying more attention to the possible risk points in the reform and designing the reform steps more carefully are the lessons left by this stock crash.

The direction of China's economic structural pformation determines that financial reform should not go backwards.

Under the "new normal" economy, the driving force of economic development is shifting from the traditional growth point to the new growth point, and innovation will become a new engine of economic development.

The role of emerging industries, service industries and small and micro enterprises has become more prominent.

The development of these new economies needs multi-level and multi type financial support.

These demands are difficult to satisfy the traditional financial system dominated by banks in China.

Therefore, we should continue to advance.

Enriching the financial market and improving the financial ability to serve the real economy are the inherent requirements of economic pformation.

The expansion of China's opening up also requires financial reform to move forward.

With the advance of the "one belt and one way" plan, China will further integrate itself into the world economy.

In the process, we need to go out through the internationalization of RMB and Asian investment bank. We also need to introduce international capital, international investors and international financial institutions.

Only by continuing to push forward the financial reform and making our financial system better integrate with the international market can we support China's further opening up and enhance China's influence in the international market through the embodiment of financial soft power.

In addition, China's financial reform can not go back.

The people have been benefited from the financial reform.

The rapid development of bank financing has given depositors a higher interest income.

With the help of financial innovation such as the new third board, some small businesses which were excluded from the financial market also received more financing support.

And China

Itself has also been greatly developed in the tide of financial reform, and its financial strength and business level have been greatly improved.

When financial reform has benefited such a wide range of fields, reversing is impossible.

Financial reform is no longer an arrow, nor is it a choice.

The exposure of financial risks, including the stock market crash, shows that China's financial system is still imperfect.

Before fixing these vulnerabilities, the stability of the financial system will still be threatened.

Therefore, we can only solve the problems encountered in the reform in further reforms.

Since financial reform is only one way forward, what really needs to be ponder is how to make the reform more stable.

This means that despite strategically unwavering reforms, we need to be cautious and prudent in tactics.

In this regard, the stock crash brought the following three points.

First, we should have a full understanding of the contradictions and risks that may arise in financial reform.

Even in a highly market-oriented country such as Europe and America, there has been a huge financial crisis such as the subprime mortgage crisis and the European debt crisis.

In the process of China's financial reform, the components of the planned economy and the market economy interact with each other, forming a more complicated market operation pattern and more risk points.

In such a situation, promoting financial reform is actually a process of trial and error.

During this period, the constant emergence of new problems is normal.

It is wishful thinking to think that market-oriented reform will solve all problems automatically.

We need to be vigilant against the signs and tendentiousness of financial reform.

Second, advancing financial reform requires top-level design, paying attention to the logical relationship and order of reform measures.

Many financial reforms need to be guaranteed if they want to achieve the desired results.

For example, when the IPO registration system in China's stock market has not yet landed and the financing behavior of listed companies has not been fully marketed, the hype of the stock market is hard to contain.

At this time, the introduction of

Such a leverage business has the side effect of amplifying market fluctuation and foaming bubbles.

The volatility of the stock market also shows the fragility of the domestic financial system.

Under such circumstances, if cross-border capital flows are too early to be released, it is inevitable that there will be problems under the impact of international hot money.

Therefore, in advancing reform, the logical relationship between finance and entities, as well as various initiatives within the financial sector needs to be sorted out, and a reasonable reform order should be designed accordingly, so as to guarantee the smooth progress of reform.

Third, the reform of financial supervision system should keep pace with the development of finance.

A major lesson of the stock market crash is that the mode of financial separate supervision has been increasingly unable to adapt to the development trend of financial mixed operation.

In recent years, each bank's funds have been hidden on the stock market. Financial regulators can only manage one or several of them, but can not form a comprehensive monitoring of the whole chain and the whole business.

This left behind a regulatory loophole and loopholes, virtually amplifying financial risks.

Therefore, under the tide of financial mixed operation development, we need to speed up our efforts.

The reform of the mode and the establishment of a mixed supervision system as soon as possible.

In fact, the stock market crash is not terrible.

On the contrary, these problems emerging in financial reform provide a rare opportunity for financial practitioners and regulators to learn.

The "chaos" emerged in these reforms pointed out to us the risks and obstacles in the reform.

It is in the course of financial reform that we have clarified the direction of reform, formed the consensus of reform, and found a smooth way to promote reform.

Without this learning process, financial reform is hard to succeed.

This way of "crossing the river by feeling the stones" is the essence of China's success in reform and opening up over the past thirty years.

Therefore, after the stock market crash, we can not stop in reform, but we should learn from risks, sum up experience and improve the financial system through further reforms.

Only in this way can we not waste our tuition fees in the stock market crash.