Ba Shu Song Talked About The June Stock Market Crash And Led The Regulatory Unit To Actively Reform.

Chief economist of Hongkong exchanges and chief economist of the China Banking Association, Ba Shu song, yesterday (19) said that the mainland stock market crash in June was the trigger for reform and supervision units.

The future may merge into a large institution similar to the Taiwan monetary authority.

Yesterday, Mr. Jiang Bingkun gave his speech on the topic of "the future development trend and challenges of mainland China's financial market".

Reuters recently quoted sources as saying that the mainland is considering merging the CBRC, the CIRC and the SFC to become a unified super oversight and Management Committee.

Part of the reason for the collapse of the stock market this summer is the lack of coordination between regulators.

Ba Shi Song said that if there is no institution that can grasp the complete situation when the market fluctuates, the official decision will be very passive. This time, the mainland stock market crash will be solved only after the people are in the market.

He said that at present, there are proposals for the merger of the three regulatory bodies of the CBRC, the SFC and the CIRC, a bit like the Taiwan Financial Management Commission, which is a very large institution.

It is pointed out that since the stock market crash, the mainland stock market is at the stage of market self repair. The mainland's financial regulatory system has been widely criticized for its strong fluctuations in the stock market. It is expected that there will be great changes in the near future.

Ba Shu Song said that the important reason for the stock market going up was that the leverage increased and the financing increased. Both the stock financing and the third party organization financing, as well as the funds from the Internet financial enterprises, at that time, how many funds came into the stock market at any point, the mainland Securities Regulatory Commission faced almost a "black box".

After reflection, the mainland

Has been highly cross-border, resulting in the pmission of financial risks, but regulatory aspects are divided.

Ba Shu song also pointed out that if there is no big accident, RMB will join the International Monetary Fund (IMF) special drawing rights SDR currency basket at the end of this month. It is logical that RMB becomes the fifth currency of SDR. The main reason is that the proportion of mainland trade volume in the world and the extent of currency use have no obstacles, and Europe and the United States have already expressed support.

He believes that for IMF, the renminbi will help the international community to identify with SDR, improve the proportion of SDR in the global GDP, and enhance the representativeness of SDR; for the mainland, it can enhance the global market's recognition of the renminbi, and it can also be regarded as endorsement of Renminbi denominated assets and promote the mainland's financial reform and opening up.