Interpretation of key points

In response to the important signals released by the meeting of the Financial Committee of the State Council, the reporter of the International Finance News interviewed many experts for interpretation.

Wu Chaoming, vice president of the Financial Information Research Institute, told the International Financial News that the meeting of the Financial Committee of the State Council mainly released three signals, namely, stable growth, stable expectations and stable finance.

Stabilizing growth: reiterate the importance of stabilizing growth, effectively invigorate the economy in the first quarter, and take the initiative to respond to monetary policy.

On the one hand, development is the first priority and economic construction is the center. The meeting clearly pointed out that "under the current complex situation, the most critical thing is to adhere to development as the first priority of the Party in governing and rejuvenating the country, and adhere to economic construction as the center", which is consistent with the contents of the central economic work conference and the government work report, and pointed out that it is necessary to "effectively invigorate the economy in the first quarter", achieve a good start, a stable door, and "stable growth" Has been placed in a more prominent position. It is expected that all regions and departments will take the responsibility of stabilizing the economy and achieve the economic growth target of 5.5% this year.

On the other hand, monetary policy should take the initiative to respond, and the signals of monetary and credit easing are obvious. In order to keep the economic operation within a reasonable range, the meeting proposed that "monetary policy should take the initiative to respond, and new loans should maintain a moderate growth", indicating that monetary policy will be more proactive, increase the intensity of countercyclical adjustment, guide banks to increase credit supply, and hedge China's current lack of credit demand. After the financial data in February was significantly lower than the market expectation, the market's concern about the obstacles to the expansion of real credit increased significantly. The precise response to the above statement will boost market confidence.

Stabilizing expectations: timely respond to hot issues such as real estate, platform economy, and China Concept stocks that are concerned by the market, stabilize market expectations, and maintain financial stability.

First, regarding real estate enterprises, the meeting proposed that "it is necessary to study and propose effective risk prevention and resolution solutions in a timely manner, and propose supporting measures for the transformation to the new development model", indicating that macro decision-making departments, including the Central Bank, will continue to strengthen coordination and support for the current liquidity constraints and increased default risks faced by real estate enterprises, We will achieve the goal of "stabilizing land prices, housing prices and expectations" and prevent expectations from deteriorating, causing financial risks and affecting financial stability. From January to February 2022, the source of funds for domestic real estate development decreased significantly by 17.7% year on year, of which domestic loans decreased by 21.1% year on year, reflecting that the source of funds for real estate enterprises is facing severe challenges. It is expected that the financing environment or margin faced by real estate enterprises will be significantly improved in the future.

Secondly, regarding China Concept Shares, the meeting proposed that the regulators have been actively responding and made positive progress, which reassured the market and also released the signal that the regulators will actively maintain stability in the face of fluctuations; At the same time, the meeting said that it would continue to support all kinds of enterprises to list overseas, indicating that the opening of the capital market is a long-term direction.

Third, with regard to platform economic governance, the meeting required that "through standardized, transparent and predictable supervision, the rectification work of large platform companies should be steadily promoted and completed as soon as possible, and the red light and green light should be set up", responding to the problem that capital investment in platform economy has become more cautious due to unclear supervision. It is expected that in the future, specific regulatory policies will speed up the determination of what is a red light, what is a green light, and what areas will be set up for traffic lights, avoid generalizing the traffic light system to other industries and enterprises, and truly achieve standardized, transparent and predictable regulation, so as to dispel capital doubts and boost confidence and investment demand; Only in this way can we "promote the steady and healthy development of the platform economy and improve international competitiveness". At present, China's digital economy and green economy have a leading edge in the world, but other latecomers are also catching up. To maintain and improve international competitiveness, we need to solve the system and mechanism problems of platform economic governance. The platform economy is an important part of the digital economy, and the digital economy is becoming the key force to restructure the global factor resources, reshape the global economic structure, and change the global competition pattern. Therefore, accelerating the healthy development of the platform economy, strengthening and optimizing the digital economy, is related to the improvement of China's international competitiveness, but also to high-quality development. The positive response of this meeting is undoubtedly conducive to the expected stability.

Stabilize finance: release positive signals to stabilize the capital market and boost investor confidence.

First, actively introduce policies conducive to the market. The meeting stressed that the relevant departments should earnestly assume their responsibilities, actively support the smooth operation of the capital market, actively introduce policies conducive to the market, carefully introduce contractive policies, and have a clear intention of protecting the market.

Second, all policies that have a significant impact on the capital market should be coordinated with the financial management department in advance. The meeting clearly put forward that "all policies that have a significant impact on the capital market should be coordinated with the financial management department in advance to maintain the stability and consistency of policy expectations", indicating that the Financial Committee has great determination and strength to stabilize the capital market, and stressed that the introduction of policies should be coordinated and communicated in various ways to avoid synthetic fallacies that affect economic and financial stability. In order to implement this mechanism, "the Finance Committee of the State Council will, according to the requirements of the Party Central Committee and the State Council, strengthen coordination and communication, and hold accountable when necessary". Therefore, it is expected that the stability and consistency of future capital market policy expectations will be improved to help stabilize the capital market.

Third, increase the medium - and long-term liquidity support for the capital market. The meeting proposed that "long-term institutional investors are welcome to increase their shareholding ratio", indicating that medium and long-term capital such as insurance, wealth management and trust is expected to bring important incremental funds to A-shares in the future. In studying and implementing the spirit of this meeting, the CBRC also clearly stated that it should guide trust, wealth management and insurance companies to establish long-term investment concepts, become the backbone to promote the development of the capital market and maintain the stability of the capital market, guide insurance institutions to allocate more funds to equity assets, and support wealth management companies to increase the proportion of equity products.

Fourth, stabilize Hong Kong's financial market. It was mentioned at the meeting that the regulators of the Mainland and Hong Kong would strengthen communication and cooperation and actively deal with the fluctuations in the capital market.

Yang Delong, chief economist of Qianhai Kaiyuan Fund, told the International Financial News that the special meeting held by the Financial Stability and Development Commission of the State Council had become an important turning point in the A-share market. At the bottom of the market, confidence was more important than gold, which greatly encouraged investors' confidence. According to this meeting, we can see that the Financial Committee has requested the following:

First, financial institutions must proceed from the overall situation and firmly support the development of the real economy.

Second, we welcome long-term institutional investors to increase their shareholding.

Third, all parties must have a deep understanding of the significance of the "two establishment", firmly achieve the "two maintenance", maintain the long-term trend of healthy development of China's economy, and jointly safeguard the stable development of the capital market.

"These are all conducive to the stability of the capital market. The A-share market is also expected to reverse the previous downward trend and return to the upward channel." Yang Delong told reporters.

China Securities Regulatory Commission made a quick statement

On March 16, after the special meeting of the Financial Committee of the State Council was held, the Party Committee of the Securities Regulatory Commission quickly held an expanded meeting to convey the spirit of the study meeting, and made research and deployment on the implementation.

The CSRC said that since this year, China's national economy has continued to recover, the main macroeconomic indicators have operated within a reasonable range, the policy of stabilizing growth in all aspects has continued to work, the performance of listed companies has been stable and improving, the stable operation of the capital market has a solid foundation, and short-term fluctuations in the market have not and will not change the long-term healthy development trend.

The CSRC stressed that under the unified command and coordination of the Financial Commission of the State Council, it will conscientiously implement the deployment of the Central Economic Work Conference and the National "Two Sessions", adhere to deepening reform and expanding opening up, adhere to the principles of marketization and rule of law, actively strengthen communication and coordination with macroeconomic management departments, industry competent departments and other aspects, and maintain the stability and consistency of policy expectations, To help stabilize the macro economic market and financial operation. We will implement the tasks of the government work report, solidly promote the comprehensive implementation of the reform of the stock issuance registration system, improve the bond financing support mechanism for private enterprises, and promote the development of venture capital. Give play to the role of the endogenous stability mechanism of the market, vigorously promote the quality of listed companies, encourage listed companies to increase their shareholding and repurchase efforts, and guide fund companies to purchase shares by themselves. We will improve the system and mechanism conducive to the participation of long-term institutional investors in the capital market, increase the cultivation of various types of institutional investors such as public funds, and encourage long-term investment and value investment. We will further promote high-level opening up, strengthen practical cooperation between the mainland and the Hong Kong capital markets, and jointly safeguard the healthy and stable development of the Hong Kong market. Continue to strengthen communication with the US regulatory agencies, and strive to reach an agreement on Sino US audit supervision cooperation as soon as possible. We will accelerate the implementation of new regulations on the supervision of overseas listing of enterprises, support all kinds of qualified enterprises to list overseas, and keep the channels for overseas listing unblocked. We will continue to support the rational financing of the real economy, actively cooperate with relevant departments to effectively resolve the risks of real estate enterprises, promote the standardized and healthy development of the platform economy, and improve international competitiveness.

In the next step, the CSRC will, in accordance with the deployment requirements of the Financial Committee of the State Council, earnestly improve its political position, closely follow the theme of promoting high-quality development, further deepen and refine various work measures, ensure effective implementation, and spare no effort to maintain the stable operation of the capital market.