Author | Jia Weizhong
Source | Car selection network
Recently, the A-share market has fluctuated sharply. As a result, the "Financial Stability Guarantee Fund" that appeared in this year's government work report has attracted much market attention, and the voices from relevant departments have gradually made the promotion process of the project gradually clear.
In late March, the spokesperson of the China Banking and Insurance Regulatory Commission answered questions about the "Financial Stability Guarantee Fund" in response to reporters' questions, which were widely reported by the media.
What is the Financial Stability Guarantee Fund? The answer to this question dates back to the Government Work Report of the Fifth Session of the 13th National People's Congress on March 5. It clearly states that "the establishment of a financial stability guarantee fund, the use of market-oriented, rule-of-law methods to resolve hidden risks, and firmly adhere to the bottom line of no systemic risks."
Why the Financial Stability Guarantee Fund? Scholars from Shandong University of Finance and Economics pointed out: "As a financial innovation at the national level, the financial stability guarantee fund is managed by the public sector, using public funds or industry resources to rescue and dispose of specific financial institutions and clear the market to deal with major financial risk events, which emphasizes the resolution of financial risks through marketization and rule of law, weakening the market's excessive dependence on the central bank, and the purpose is to ensure the stability and security of the financial system and even the economy and society." ”
Who is funded by the Financial Stability Guarantee Fund? A spokesman for the China Banking and Insurance Regulatory Commission said: "The work related to the establishment of the Financial Stability Guarantee Fund is being studied and promoted, and preliminary consideration is that the Financial Stability Guarantee Fund is used for the disposal of major risks with systemic hidden dangers, and the deposit insurance and industry guarantee fund that play a role in the routine risk disposal are all indispensable parts of the mainland's financial safety net, and are taken from the market, used in the market, and differentiated between different industries and different entities to implement differentiated charges." ”
What's next? In the "Opinions on the Implementation of the Division of Labor in the Key Work of the Government Work Report" issued by the State Council, the arrangement for this task is: the People's Bank of China takes the lead, the National Development and Reform Commission, the Ministry of Justice, the Ministry of Finance, the Banking and Insurance Regulatory Commission, the Securities Regulatory Commission, the State Administration of Foreign Exchange, etc. are responsible for the division of labor according to their duties, and the work related to the raising of the Financial Stability Guarantee Fund will be completed by the end of September, and it will continue to advance during the year.
Prior to this, the mainland had previously set up a similar risk disposal system in the fields of banking, insurance and other segments, which was called the "safety net" of various sub-industries in the financial sector by industry insiders.
If this is the case, why is there a special "Financial Stability Guarantee Fund"? Ming Ming, co-chief economist of CITIC Securities, said: "The Financial Stability Guarantee Fund is a higher dimensional national fund that is different from related funds such as deposit insurance funds. It not only further enriches the sources of funds for risk disposal and improves the 'safety net' in the mainland's financial sector, but also covers areas that cannot be covered by the industry guarantee fund from an overall perspective, which is conducive to preventing and resolving systemic financial risks. ”
What will be the impact on the market after the establishment of the Financial Stability Guarantee Fund?
Northeast Securities believes: "In the short and medium term, the financial and other sectors with greater systemic risks have benefited the most, for example, after the establishment of the Stability Fund in the European Union, the rise and fall of the financial sector in 3 months has reached 21.85%, mainly due to the direct financial assistance of the Financial Stability Fund to member states; in the long run, the performance of the industry is more dependent on economic fundamentals, such as the gradual recovery of the US economy, the pro-cyclical sectors such as energy, materials and industry have performed the most well, and the European stock market has also faded with the European debt crisis, consumption, The energy and high-boom communication equipment segments also performed better. ”
Overall, under the background of increasing uncertainties in the external environment and increasing downward pressure on the economy, the timely introduction of the financial stability guarantee fund by the mainland is a major measure to ensure financial stability and security and no systemic financial risks, which will make the "safety net" of the mainland financial market more perfect.
(Image source: Internet)