Stock Market Disaster Should Not Be Abducted. Financial Reform Needs To Improve Market System And Supervision Technology.

Financial liberalization is in line with the general trend of globalization. It is a move to promote the development of an open economy. The overall advantages outweigh the disadvantages.

At present, we should focus on how to improve the market system and supervision technology.

Financial liberalization has been reduced to

A scapegoat.

Since the June stock market crash, discussions and Reflections on its causes and lessons have been heard.

Some financial officials and market participants believe that the stock market crash can be controlled more rapidly by the government. Fortunately, the capital account has not yet been fully opened.

Reform measures such as exchange rate liberalization should also be postponed.

This view of losing the big and putting the cart before the horse is not enough.

Stock market development and capital account liberalization are different levels.

No matter from which point of view, the stock market crash should not abduct financial reform and shake up financial liberalization. In particular, the Central Committee's decision to push ahead with interest rate and exchange rate reform and achieve convertibility under capital terms should not be substantially affected.

We need to know that financial liberalization is not the main reason for the cost of the stock market crash.

The stock market crash is attributable to the fact that the fundamentals do not support the previous bull market, which is attributed to the strong leverage and the sudden collapse of the bubble. In the final analysis, the stock market crash is still caused by the immature capital market in China.

As the intellectuals have said, China's stock market is dominated by small and medium-sized retail investors.

This has caused the stock market to go up and down, and the huge bar inside and outside the field has greatly strengthened this effect.

In the case of regulators, both the excessive leverage and violent deleveraging, or the panic and gaffe in the rescue market, have exposed the defects of the market regulation system.

Therefore, the current reflection on lessons learned from the stock market crash should focus more on how to improve the market system and regulation technology.

There is neither a factual basis nor a basic logic to put the board on financial liberalization.

China has been making limited progress in the opening of capital markets, and the channels and magnitude of foreign capital entering China's stock market are still very limited.

And in the more stringent capital control of 2007 -2008,

The stock market crash continued.

It can be seen that there is no correlation between the two financial opening-up and stock market disasters.

The core goal of financial reform is to help the development of the real economy.

With China's entry into the WTO and further opening up to the outside world, China's economy has been deeply integrated into the globalization process.

China urgently needs to build an open economic system, enhance its own international competitiveness, and achieve effective allocation of resources on a global scale.

In particular, the International Monetary Fund (IMF) is carrying out an assessment of the introduction of RMB into the special drawing rights (SDR). China's accession to the SDR requires that currency be widely used internationally, and it is necessary for China to speed up the process of capital account liberalization.

From this background, interest rate, exchange rate reform and the convertible convertibility under capital account are of great strategic significance.

Even in the near future, these reforms can greatly facilitate foreign trade, facilitate the internationalization of the renminbi, and match the status of China's rising power. In the long run, these reforms are the prerequisites for the pition period of growth rate and long-term stable development.

This is more about the overall situation.

Needless to say, financial openness also involves risks in raising the efficiency of capital use, such as haste, and the domestic economic order may be impacted. The stock market is no exception.

For example, if we further promote capital account liberalization, we may increase the scale and speed of capital flowing into and out of domestic and foreign markets, and the volatility of stock market will also increase correspondingly.

This puts forward higher requirements for the ability and level of market supervision.

However, international experience shows that financial liberalization will not necessarily lead to a sharp rise or fall in the stock market.

The volatility of the stock market index should not naturally become a criterion for testing whether financial openness is necessary.

If we take account of the ups and downs of the stock market and abandon the financial reform and opening up, it will be penny wise and pound foolish. In the long run, it will be neither conducive to economic development nor to the perfection of capital market.

Financial reform should be coordinated in all aspects, but it is necessary for the backward departments to catch up, but it does not mean that the areas to be advanced should be stopped.

It has been nearly 20 years since China announced the realization of convertibility of current account in 1996.

In the process of promoting the opening of capital account, we must pay more attention to strengthening macro Prudential Management, speeding up the supervision level and monitoring technology, and improving the ability of monitoring and resisting risks.

Three things must be done.

First of all, we should speed up the reform of interest rate liberalization and the capital account liberalization supporting system in accordance with the deployment in the third Plenary Session of the 18th CPC Central Committee. We should coordinate capital account liberalization with interest rate and exchange rate reform, and steadily promote financial liberalization. Secondly, we must strengthen the construction of financial infrastructure, including the establishment of a unified financial data platform, and the integration and standardization of payment and settlement system, removing barriers from the level of technology and hardware facilities, and laying a solid foundation for financial openness. Third, we need to adjust the current pattern of financial supervision and line division, adapt to the realities of cross-border finance, and promote the pformation of functional supervision of.

Financial liberalization is in line with the general trend of globalization. It is a move to promote the development of an open economy. The overall advantages outweigh the disadvantages.

It is necessary to attach importance to the risks involved in opening up, but closure and control are more dangerous than openness and mobility.

And some of the interests of people in the stock market to self weight, incite the people to fatten themselves, not hesitate to alarmist, more vigilant.

When implementing the duty of maintaining financial stability, the government must identify the strategy of stabilizing the root cause.

It is imperative to push ahead with interest rate liberalization, exchange rate liberalization and capital account liberalization.