China'S Capital Market Development Strategy

The proposal of the Central Committee of the Communist Party of China on formulating the thirteenth five year plan for national economic and social development proposes that we should speed up the reform of the financial system and improve the efficiency of financial services in the real economy.

We should foster an open, pparent and healthy capital market, push forward the reform of stock and bond issuance and trading system, raise the proportion of direct financing and reduce leverage.

Why are we so highly leveraged? What is the development goal of the capital market? It should be built into a fair, pparent and efficient market, making an important contribution to the effective allocation of China's economic resources and becoming more open and efficient.

The market will play its due role in the international financial system.

First, we should continue to develop multi-level capital markets and expand the scale of capital markets.

The plan for 13th Five-Year will double the national economy in 2010. To achieve a well-off society in an all-round way, there must be a strong capital market to support it in 2020.

At present, China is still mainly indirect financing. The capital market has not really played the role of allocating social resources and enterprise resources. It can be said that for 25 years, it has not been implemented and basically failed to play. We are talking about the two level market, which is not the essence of our capital market.

Here is a table, the data and structure of the scale of social financing from 2002 to present. Let's look at the social capital raising in 2002 only 20112 billion. In that year, our stock issue was 62 billion 800 million, and the bonds were mainly corporate bonds. We were about 30000000000, but how many bank loans were there in that year? 18000 billion.

By 2014, the scale of our social financing has reached 16 trillion, but bank financing is not another loan, 97813 billion.

Let's see how many shares were issued in 2014, 435 billion of which accounted for about nine trillion of the loans, and we saw the proportion of them. From 2002 to now, we have made some progress, which accounts for 91.9% of the total financing scale of our banks. Other forms, including stocks and bonds, account for less than 10%. In 2002, our share accounted for 3.1% of the total financing, and in the 1.82014 year we fell, and the direct bank loans accounted for 59.6% of the total. We should say that this structure has changed greatly. Other loans, trust loans, foreign exchange loans, but bonds and stocks, bonds are 14.5, and shares account for 2.7% of the current financing amount.

So we basically make money for such loans. In recent years, our currency has increased by almost ten trillion a year. Our M2 has been 120 trillion, the world's number one, surpassing the Federal Reserve, that is to say, China's economy is solved by this currency.

And our efficiency is getting lower and lower. In 2002, we probably produced 1 yuan GDP needed 55 Fen cents, now output 1 yuan GDP need two yuan, so that can develop the Chinese economy? By increments, this is not possible, so we have to expand the scale of direct financing, and develop more equity and equity financing, but bonds can also be, corporate bonds are social stocks are not new money, so China has to develop the stock market.

The main board, medium and small board, gem, the new three boards must be developed; and other equity markets should be developed.

Equity funds, equity investors and so on. Now, what is the innovation of the public and what is the innovation of the stock market? It is equity financing. It is equity. It is not a bond. We want to develop the equity economy. In this case, we need to develop corporate bonds, corporate bonds, and focus on asset securitization. In fact, there is a physical guarantee called asset securitization. In addition, we regulate the development of the financial derivatives market. I have just said that these derivatives still need to be developed, but this derivative can never be separated from the real economy for speculation. The United States is out of this. CDS, CDO, the global financial crisis and stock index futures should also control development, including options, all of which are innovations, but this innovation has a very big problem. Private placement

Second, we must adhere to the direction of market-oriented reform, gradually build a market oriented innovation mechanism, and implement the registration system for securities issuance.

In addition, we must correctly deal with the relationship between the government and the market. We must let the market do what the market can do, and the market can not help the government to do it. This is what the government must do in order to play the market. Therefore, marketization is a general direction.

Third, enhance

We should constantly improve the standardization of capital market, improve the legal system of capital market, rule the city according to law, strictly enforce the law, crack down on crimes and protect the legitimate rights and interests of investors.

Rather than "save the market" than the city, of course, China's laws are not sound enough, and the securities law is still sound. In fact, we have many laws now; second, lax enforcement, no violation of laws and regulations, and no law to punish the public. Now, there are some problems. It is not like corruption or corruption. Now they are all handed over to the courts, and the courts are not clear about insider trading. The initial lawsuit of our insider trading lawsuit was submitted to the Shanghai court. The Shanghai court did not accept it.

China has three legal responsibilities in law enforcement. First, the administrative responsibility is fines. This time it is a fine flush, Hang Seng, and a leading brother, Xu Xiang, who has fined them. In fact, there are civil liability for compensation, and serious criminal responsibility.

Fourth, speed up the pace of internationalization of the capital market and improve the international competitiveness of China's capital market.

It is necessary to further internationalize China to become a capital power and make China's capital market an indispensable part of the international financial market, for example, continue to develop QFII and QDII; develop Hong Kong and Shanghai through Hong Kong, Shenzhen and Hong Kong, set up an international board market, allow overseas enterprises to raise funds in the territory, and encourage conditional enterprises to go overseas, of course, encourage enterprises to participate in the reorganization and acquisition of international enterprises, and acquire strategic enterprises or resource enterprises, high-tech enterprises.

China should gradually turn from a capital utilizing country to a capital exporting country. Now it has begun, so that our capital power can become a real economic power.

Looking forward to the future, with the gradual improvement of the legal system and regulatory system, the expansion of market size and efficiency, and the enhancement of international competitiveness, China's capital market will play an important role in the construction of a harmonious society in the future. With the growth of China's economy, it will develop into an international competitive market and play its due role in the international financial system.

Therefore, we should have confidence in China's capital market, and of course be patient.