Wu Xiaoqiu: I Hope Not To Limit The Third Party Payment.

Wu Xiaoqiu, director of the Securities Research Institute, is worried about the central bank's soliciting opinions on the third party payment. I hope that there will be no such restrictions. Limiting the third party payment will bring a lot of inconvenience.

In August 1st, the eighth phase of the new supply round table was held in Beijing. The conference is sponsored by the Chinese new supply Economics Research Institute and the 50 forum of China's new supply economics.

Wu Xiaoqiu, director of the Institute of Finance and securities, Renmin University of China, delivered a speech entitled "China's financial strategic objectives and capital market development". Wu Xiao Qiu There are worries about the central bank's opinions on the third party payment. He believes that the third party payment is the cornerstone of the most influential Internet finance, and the third party payment and e-commerce are highly compatible. Third party payment It will bring a lot of inconvenience.

Low efficiency is not the goal of reform, so Wu Xiaoqiu hopes not to have such restrictions. He stressed that restricting the third party payment hindered financial innovation and prevented and stifled innovation. He hoped that China could adapt to the trend of history and promote financial reform through new financial ideas.

The following is a record of the speech:

Wu Xiaoqiu: yesterday, the central bank issued a request for comment on the third party payment. I expressed a concern about the draft. Online finance It is the change of the economic operation mode. The most influential factor in the formation of Internet finance is the third party payment. Then it is other wealth management, crowd raising and net loan. The third party payment is very important, and it is highly compatible with e-commerce. Why should we restrict this highly fit thing? Why set such a restriction? This makes people very inconvenient.

The most important service provided by finance is flexibility, convenience and safety. All restrictions against these principles are erroneous, and low efficiency is not the goal of our reform. Therefore, I am very worried about this. I hope that there will be no such restriction. Next I will write a long thing to analyze the shortcomings of this method, which means that it hinders financial innovation and hinders public innovation. I hope our country will conform to the trend of history and see the future changes, not for some inherent interests.

We must promote financial reform through this new financial innovation. Only innovation can push forward the reform and lag behind the innovation. The original finance will become a pressure. If there is a crisis of survival, it will change. No innovation, no competition, there will be no change. After the introduction of new forces, the pressure and power of change will be the only change. China's finance needs to be changed urgently. We are too traditional and too backward. The whole financial system is very old. Our finance is still dominated by the traditional financial structure.

What is the traditional financial structure? For example, we finance, invest, deposit and so on. This kind of financial activities mainly rely on commercial banks. It has its rationality in different stages of history. But today, this mode of operation needs to be changed slowly because it is not commensurate with the position of our great power. A great power needs the structure of a great power finance, rather than a traditional backward financial structure. If your big country wants to maintain sustained and stable economic growth, your financial system must have a strong ability to deploy resources. There must be a mechanism to spread risks. These things are very important. They must have a good wealth management effect, and a smooth, secure payment system and flexible and convenient payment system. This is the basic structure of our financial power.

If we follow this goal, we will not achieve wealth management in many areas.

China's financial market has developed rapidly, but it has been developing very slowly in a long history. A financial system without capital market or underdeveloped capital market has its strong wealth management function. It is impossible that the basic assets of wealth management are the financial assets that are negotiable securities, not all kinds of financial products, nor are they buying many houses or buying a lot of land. This is not the basic of wealth management. The basic form of wealth management in a developed country is based on the developed capital market, that is, its most important basic asset is the applied assets of securitisation, its core is rights and interests, and, of course, bonds are also very important.

Therefore, in this sense, the development of capital market is very important, because you have to fulfill the function of wealth management that a great country needs, and you have to complete an open request. Not only domestic people, but also must be open to investors all over the world to manage their wealth through this mechanism. Obviously, a developed, transparent and open capital market can accomplish such functions.

Of course, what is more important is that the function of finance is changing. Our understanding of finance is very traditional. Basically, it is defined as a financing platform, and I need money to finance it. Now, finance is slowly changing. With the change of financial structure, the function of finance is changing from a financing platform to an investment platform. This change is very important, that is to say, the function of wealth management provided by the financial sector is slowly surpassing its financing requirements.

Although financing is still very important in China, China is still a developing country, so this is still very important. Until our per capita GDP reaches US $15000 (the target can be achieved in another ten years), this goal will change. Another argument for wealth management is risk allocation. Risk allocation is necessary. These basic assets must have good liquidity, and assets without liquidity are not configurable. These are the financial needs of our great powers.

The flexibility, efficiency, low cost and security payment that I have just said is also very important. Therefore, it has its own characteristics in the financial structure of big powers in China. It may be different from the structure of the countries with big powers in the past. That is, the path of financial development that China will take in the future is similar to that of almost all countries now. Its essence is the same, but its external form and structure are slightly different. China has a large population, and its industrial structure is all from the most primitive to the most advanced. I am afraid no country in the world has such an endless industrial chain like China. The essence of finance is to serve the real economy, not to leave the real economy.

When I opened my mouth, I saw the central bank's solicitation for the third party payment. From the perspective of the financial structure of the big country, this problem is not allowed to return to the era of payment through the carrier of the bank, just as it is impossible for people to return to cash transactions. The popularity of our credit card transactions has also gone through a process.

Looking at the whole history of payment in the whole world, people began to be skeptical at the beginning. They thought it was necessary to take cash transactions, and later found that cash transactions were very inefficient and very unsafe. Experienced this stage, formed the bank as the carrier payment. Now we have entered the third party payment system, the mobile Internet as the basic platform payment system. This is a historical trend, just like from gold to cash to paper money, to the completion of the payment system based on the banking system, and now to the form of the third party payment which is mainly based on the mobile Internet. This is the transformation of Finance and the reform of the payment function. It has promoted social progress and economic development, enabling people to enjoy many highly efficient things. This is a historical trend.

The title of my speech is "China's financial strategic objectives and capital market development". It is divided into three parts: China's great powers financial strategy, the core elements of China's great power finance, and China's capital market: reform priorities and development goals.

China's major financial strategy is mainly based on China's economic growth. Based on the adjustment of China's economic structure, based on the transformation of China's economic growth mode, of course, it is also based on the sustainable development of China's future economy.

There are many experts here, China's economy has entered a middle and high speed stage, and many of them are L type or U type. I must abandon the illusion of U type. Now it is impossible. The continuous L type must be the case. It is neither necessary nor possible to go back to the growth of 10%. This form also tells us the urgency of financial reform, because the scale of China's entire financial assets, the scale of credit assets and the scale of the economy, and the speed of economic growth all show a rapid growth, that is to say, we have too much credit resources to promote economic growth. The growth rate and scale of credit resources are bigger and bigger. The L type also indicates that there will be a serious financial crisis in the future of China's financial structure.

The transformation of our economic growth mode is very clear. There are four aspects. First, from high speed to high speed, and to medium speed and medium low speed, this is a basic trend. We must make sure of this goal. Second, we need to make structural adjustments. Third, the transition from the key elements to the current innovation driven. Fourth, from the past, mainly from the transition from investment and external demand to the balanced growth of the three carriages, the growth mode based on internal demand. What we call the new normal is about that.

According to such an economic growth, it is generally not until 2022 that China will be the world's largest economy by the end of 2025. The question is how we can maintain long-term, sustained and steady growth of the economy, just as the US economy has maintained 100 years of growth, and there have been several times of turbulence. But it has passed well, including the 2008 financial crisis. No big country in the world is able to ride out such a big risk. Of course, it benefits from its flexible financial structure, which absorbs risks, effectively configures risks, and enables risk mobility, which is most important.

China's financial comparison model, the American model and the British model. The British model was the first to start with the establishment of a maritime state and finally to trade hegemony. Therefore, its financial system led by the town bank led to the era of big power finance, and its country prospered for two hundred or three hundred years. On the basis of modern industry, the United States highlights that investment banks are very large and have promoted the process of asset securitization. Asset securitization is the cornerstone of modern finance. Without asset securitization, there is no modern finance. The real modern finance started in the United States. China may be the third country in the world that can do great power finance. None of the other countries in Japan has reached it. Japan has almost reached it, and has not reached it at last because its structural design is having problems.

China and the United States compare the total economic volume of China and the United States. From GDP, we see a little more than US $10 trillion, the United States is a little more than US $17 trillion, the stock market value is US $9 trillion, they are 26 trillion dollars, and our listed companies (excluding new three boards) are 2800, they are more than 5200, there is still a certain gap.

The big country finance has several core functions. The most important function is to have efficient and powerful resource allocation capability. Second, it is a good risk diversification mechanism, including the ability of financial management. Third, it must be open and internationalized. Fourth, it is an important global financial center. It is an important asset allocation center in the world. It is not a simple currency trading center, but the most important asset allocation center.

The design of the financial structure of a big country like China is very important for the sustained and stable growth of China's economy. China's big power finance is different from that of Britain and the United States. First of all, its homogeneity and financial function are the same from the entity, from the original financing of resource allocation to the allocation of resources, to the wealth management, and then to the financial management system which is gradually dominated by wealth management.

There may be differences between China and the United States, because China has a special kind of financial culture, which will change some financial elements. Why it is so difficult to develop capital market in China is that there are some genes in Chinese financial culture that do not match the requirements of capital market. For example, transparency is the requirement of transparency in the capital market, but transparency in China is not enough. At least it is hard to say that we are a highly transparent society. The opaque market can not be developed, especially in insider trading, an opaque market or an unknown society. Insider trading has seriously eroded the cornerstone of the capital market, and the market is unfair and unfair. In this sense, we do have some problems.

It has some requirements in this respect. For example, Internet Finance in China will become an important element in the financial structure of big countries. Internet finance is the most developed in China. Now, what we most admire is that if your financial innovation is worthy of everyone's affirmation, we should take a definite or dark way to stop it. This is a problem.

The core elements of China's great power finance are the internationalization of the RMB, the internationalization of the RMB, and the difficulty of establishing a big financial power in China. We say that Britain is a big power finance, because in the early two years, Britain is the most important country in the world. In 1916, the dollar began to exceed the share of the pound. By 1944, the global dollar became the core. Therefore, the United States' great power finance is also guided by the internationalization of the US dollar. China's big financial interest rates are internationalized. The pace of RMB internationalization is accelerating recently. RMB internationalization transactions have been opened 85%, leaving 15%. Securities investment under capital account is partially open. Our QFII, QFB, RQFII and so on are partially open, but they are conditional and not barrier free. The last leg will be able to complete this reform, including the increase in the fluctuation of foreign exchange rate, which is an important symbol of RMB internationalization. These are important achievements, including the expansion of the scale of cross-border trade. But the renminbi is not yet a freely traded currency globally. I am optimistic that the important reserve currencies will be closer to the euro in 2025 or earlier.

In the opening up of China's financial system, to become an international financial center, this is the second important element and the most important element of China's great power finance. If only the internationalization of the domestic currency, many countries have completed, the Japanese yen, Hong Kong dollar and Singapore dollar are all internationalized, but it is obvious that its financial market is not an international financial center, and China will become an international financial center.

Shanghai will become an international financial centre from April 2009 to 2020, and this goal will not change. In fact, the history of the global financial center, from early Venice to Amsterdam, and later to London and New York, will soon arrive in Shanghai. This history will surely be achieved. Tokyo is the dotted line, because Tokyo has become the most influential financial center in the world. It has slowly evolved into a regional one, and the core element of financial market, special capital market and China's great power finance is the core of the three elements.

So from this we can see that the development of capital market is a national strategy, not a practical thing. It is the core element of a country's financial strategy. The first point or the internationalization of RMB is equally important. Many of us now only think about the Internation of RMB. We have a reason to save the market. We must maintain the stability of the financial system and abide by the international rules and maintain the basic concept and basic spirit of the market. I think it is equally important. Because you want to become an international financial center in the future, the established idea can not be changed, and the spirit of the contract is unchanging. The house was on fire, and the fire fighting was very important. The chopsticks and fridge inside could not be taken care of, but I wanted to save the fire, but the fire could not keep the foundation of the house, and the basic structure of the house should be preserved.

I want to remind you that because China's finance will become an international financial center in the future, we must have this idea and idea from now on, so that we can slowly aggregate human body and become an international financial center, and this is the cornerstone of China's great power finance. The capital market is the most important asset allocation center in the world. The London market is the most important currency pricing center and currency trading center. Our market will be almost the same as the New York market. Asset allocation is very important.

The construction of the financial center is the cornerstone of our financial power. The core of the financial center is the capital market. If we want to invest, we need to make asset allocation. We must buy your assets with good liquidity, good transparency, and certain assets. Therefore, the development of the capital market is very, very important. From 1990 to the present, from the top leaders to the common people (603883), China has never been so concerned about capital markets for a time. This is also a great prospect for China's capital market.

Our market value ranges from several hundred million to about 60 trillion now, with about 2800 listed companies and second in the world. I put forward our goal that the capital market listed companies in 2020 (excluding the new three boards) should reach 3800, and the market value should be 80-100 trillion. We have reached 70 trillion now. At that time, we said that we could reach 80-100 trillion, and many people said that the goal was too high to be possible. According to one hundred percent of the securitization rate, 80-100 trillion, I think it can be achieved, which is the basic index of finance. 100 trillion according to the current exchange rate is US $16 trillion, and there is still a gap with the US.

To achieve this goal, we must first reform. First, we must reform the supply system. The most important two points. First, the reform of approval from the registration system can not stop the reform because of the crisis this time. Second, the listing standards should be changed. The previous securities laws and the relevant rules for listing are all from the perspective of modern industry. They are heavy assets, heavy scale, heavy history, heavy personnel and heavy financial status. They are all modern industries. In fact, human society is moving from modern industry to post industrial era. According to this standard, Alibaba, Tencent and a large number of outdated enterprises in China are listed without investment value, which is the focus of reform.

To get more capital to enter the market, the core element is that the huge pension and social security funds managed by provinces and autonomous regions in the past have not entered the market. The scale and structure of the funds entering the market, which is determined by the State Council to decide the pension and social security funds managed by provinces and autonomous regions, should be entered into the market according to specialization.

The huge gap in China is pensions. No investment and only the supply of primitive capital can not provide protection for more and more retirees, so we must invest in supply. Why do Americans do not have this problem? It has investment supply, community pension, Harvard University and Yale University. The scale is not due to the large amount of money donated, but because of the relatively good investment. China has not yet had the concept. All of them must complete a transformation of investment capability.

We must open up. I strongly agree with the reform of Shanghai and Hong Kong and Shenzhen and Hong Kong. Secondly, foreign enterprises go to China to go public. These thresholds will be demolished in the future.

We have such a good goal that we accelerate development, but this time there are some problems. There is no mistake in developing the capital market. It is very correct, but we have some inexperience in the development process, some lack of risk control ability, and a little specialization level. The Chinese market is a highly leveraged market. The global leverage market is the highest. Since 2013, our leverage ratio is particularly high. The highly leveraged market will inevitably bring about structural and fragility. It must rise rapidly and fall rapidly. China is a three lever market, one is equity pledge loan, and the other is Bank 60%-80% and second, which is 100%-200%. Third off the field capital allocation 300%-1000%, three tier financing together, they are constantly matching, continuous melting, so there is a turnover of 25000 billion, the Chinese market value is only less than 40% of the US market, our trading volume is more than the total volume of the global market volume, this market is no problem. At this time, we must take measures to reduce the lever quickly. We should not clear the lever at the beginning. We must adjust the leverage ratio. The adjustment of the adjustment should not be cleaned up at a very high level. It is very fragile.

Identifying risks is also important. China lacks financial talents. It is also important for us to abide by the basic rules of the market. It is also understandable to make the necessary measures in a necessary period.

There are two things to do in the future market. First, we must clear the lever and make sure that the off-site allocation must be cleared. All the over-the-counter allocation should be cleared up as a system. The two financial rules must be standardized. At present, 9% interest is a very obvious problem. Second, a variety of false information is flooded. A company makes thirty million yuan into an Internet company. It becomes Internet +, develops Internet finance, and makes ten trading boards. This is totally false. We can not do this. Our regulatory authorities should strengthen supervision and not change the company by ten times by changing its name. This is totally undesirable. It should be improved and attention should be paid to changes at any time.

The direction of China's financial reform is not to be moved. To build a modern financial system based on capital market is an open, international financial center. This goal can not be changed, and I believe it will not be changed. I said so much. Thank you.