Zeng Gang: Do a good job in the "five major articles" to serve high-quality development

(Zeng Gang is the director of the Shanghai Finance and Development Laboratory)

Since 1997, the CPC Central Committee and the State Council have convened five national financial work conferences. As the highest-level meeting of the financial system, each national financial work conference has had a significant impact on the direction and policies of the mainland's major financial reforms in the next stage. From October 30 to 31, 2023, on the basis of the establishment of the Central Financial Commission and the Central Financial Work Commission, the "National Financial Work Conference" was renamed the "Central Financial Work Conference" and was held in Beijing. Overall, the Central Financial Work Conference comprehensively summarized the financial work since the 18th National Congress of the Communist Party of China, analyzed the situation facing the high-quality development of finance, and deployed the financial work in the current and future periods.

The Central Financial Work Conference clearly put forward the need to "do a good job in science and technology finance, green finance, inclusive finance, pension finance, and digital finance", which reflects the people-centered value orientation and the fundamental purpose of financial services for the real economy, and also points out the direction for finance to better serve high-quality development.

Focus on the difficulties and improve the quality and efficiency of science and technology financial services

In order to accelerate the development of science and technology finance, it is necessary to focus on the difficulties and blockages in the science and technology finance business, and solve a series of problems in a targeted and innovative manner, including the limited means of collateral, the imperfect risk sharing mechanism of science and technology innovation projects, and the relatively simple products and services.

Build a market for technological elements and promote the development of intellectual property finance. Intellectual property and technology are the main assets owned by science and technology enterprises, but compared with tangible assets such as real estate, intellectual property rights are subordinate and exclusive, and generally can only generate commercial value under the use of specific industries and enterprises, and it is not easy to form a comparable and referential market price. At the same time, its value is susceptible to technology, market and other factors, and the risk of fluctuation is greater. From the perspective of the development of science and technology finance, accurately evaluating the value of enterprise intellectual property is the key to understanding its level of scientific and technological innovation, and it is also the key to solving the difficulties in the development of science and technology finance. In this field, the focus is on the following aspects: first, strengthen the construction of the intellectual property market and build an intellectual property exchange with national and even international influence; Second, encourage and support the development of intellectual property operation institutions, give full play to the core role of science and technology investment banks in the science and technology innovation financial system, improve the ability of intellectual property market-oriented operation, and accelerate the construction of an international, market-oriented and professional new intellectual property service system; Third, deepen the innovation of intellectual property financial products and services, and promote the transformation and value realization of intellectual property capital; Fourth, while strengthening cooperation with external intellectual property intermediary service institutions, financial institutions can also establish and improve their own evaluation capabilities, and set up specialized evaluation institutions and talent teams to specialize in the evaluation and disposal of intellectual property rights, so as to build the internal intellectual property service capabilities of financial institutions; Fifth, promote the extensive innovative application of financial technology in the field of intellectual property services, comprehensively use new technologies such as big data and artificial intelligence, strengthen basic data collection and intelligent Xi, build intelligent assessment model tools, improve the efficiency of intellectual property assessment, and effectively control risks.

Based on the needs of science and technology enterprises, we will build a diversified and multi-level science and technology financial system. It should be gradually upgraded from a loan-based service model to a comprehensive and all-round service of "on-balance sheet + off-balance-sheet", "commercial bank + investment bank", "debt + equity" and "financing + financial intelligence". By using financial technology to improve the supply chain platform, help accurately identify the needs of specialized, special and new small and medium-sized enterprises and enterprises, and actively expand the direct financing channels of science and technology enterprises while further exploring the innovation of investment and loan linkage business, so as to form a diversified and multi-level technology financial system. The first is to build an innovation risk sharing mechanism. Further improve the relevant systems, especially to gradually establish and improve the guarantee and compensation fund capital (capital) replenishment channels, to ensure the sustainability of the risk compensation system. At the same time, the assessment of the guarantee compensation fund will be further refined to ensure the efficiency of the use of relevant funds, and leverage more social funds to enter the field of "specialization, refinement, and innovation". Second, the role of the government should be further brought into play. Through local bank-enterprise services and docking platforms, as well as the establishment of industrial funds, etc., we will improve the financing service capabilities of financial institutions for investment and loan linkage business. The third is to optimize regulatory rules. Relax restrictions on the relevant business of commercial banks, especially in terms of capital constraints, and appropriately reduce the capital requirements for investment-loan linkage business. Fourth, expand direct financing channels for small and medium-sized enterprises in science and technology. The ability of the capital market and the bond market to support scientific and technological innovation will be further enhanced by promoting the expansion of the scale of bond issuance by technology-based enterprises, promoting the construction of a high-yield bond market, and enriching science and technology innovation bond products.

Focus on the "dual carbon" goal and improve the green financial system

Adhering to and accelerating green development has become an important strategic goal of the mainland in the medium and long term. The "dual carbon" goal proposed by the mainland, that is, to achieve "carbon peak" by 2030 and "carbon neutrality" by 2060, fully demonstrates the mainland's responsibility and responsibility as a major country. The report of the 20th National Congress of the Communist Party of China further clearly pointed out that Chinese modernization is "the modernization of harmonious coexistence between man and nature"; It is necessary to accelerate the green transformation of the development mode, implement a comprehensive conservation strategy, develop green and low-carbon industries, advocate green consumption, and promote the formation of green and low-carbon production methods and lifestyles; We will further promote the prevention and control of environmental pollution.

Overall, the "dual carbon" goal has established the core task and roadmap of the mainland's green development, and the financial industry must focus on this core task, continuously improve the green financial system, and improve the quality and efficiency of supporting green development.

Continuously enrich and improve the green financial product system. At present, green financial products are mainly concentrated in green credit and green bonds, and the supply of green insurance, green securities and other innovative green financial products cannot meet the needs of market investment. The structural contradiction between the supply and demand of green financial products is still relatively prominent, and the role of guiding enterprises to change their production methods and pay attention to environmental protection has not been fully utilized. At the same time, the coverage area and audience of green financial products are relatively single, and the development of green financial products pays relatively little attention to the consumer side. In addition, most of the existing green financial products are targeted at corporate businesses, and in the future, we should take the opportunity of supporting the development of green consumption to strengthen the innovation of retail green financial products for the public and ordinary residents. In addition, in terms of market construction, in the future, it is necessary to gradually expand the scope of the implementation of the carbon emission rights market around the mainland's emission reduction pathway, and guide financial institutions to participate in the investment and services of the carbon emission rights market in an orderly manner when the time is ripe, so as to give full play to the potential of the carbon emission rights market in guiding emission reduction.

Comprehensively strengthen the green finance business capacity of financial institutions. First, we should incorporate green finance into corporate governance and promote the comprehensive development of green finance business. Fully implement relevant national policies and deepen the green business philosophy. Second, we need to speed up the construction of systems and comprehensively promote green finance business. Financial institutions should improve relevant systems, and gradually build green finance management systems such as organizational structure, human resource allocation, risk management and control, statistical monitoring, information disclosure, and due diligence and exemption; Improve credit policies, adjust credit policies in a timely manner in accordance with scientific and prudent requirements, and clarify key areas of green credit support, restrictions and prohibitions; Optimize process management, make full use of big data and Internet technology to implement credit process reengineering, and improve the service efficiency of green finance customer contact, due diligence, review, approval, and lending. Finally, enrich the product system and create business characteristics. Specifically, it includes the development of green credit and green bonds and other tools, promoting innovation in business processes, products and services, opening up green channels for green finance business, and improving the efficiency of approval of green credit. Focus on supporting the construction of ecological protection and ecological civilization demonstration zones, promote the sustainable development of agriculture and rural areas, and actively carry out green finance innovations such as pledge of accounts receivable, equity pledge, pledge of future usufruct rights of contract energy management, and pledge of emission rights and carbon emission rights.

Focus on weak links and strengthen inclusive financial services

Since the 18th National Congress of the Communist Party of China, the mainland has attached great importance to the development of inclusive finance The Third Plenary Session of the 18th Central Committee of the Communist Party of China (CPC) put forward the concept of "developing inclusive finance" as one of the contents of comprehensively deepening reform, and since then inclusive finance has been promoted to a national strategy. In October 2023, the State Council issued the Implementation Opinions of the State Council on Promoting the High-quality Development of Inclusive Finance (hereinafter referred to as the "Implementation Opinions"), which further clarified the guiding ideology, basic principles and main objectives of promoting the high-quality development of inclusive finance in mainland China, covering the optimization of products and services in key areas of inclusive finance, the improvement of the organizational system of multi-level inclusive financial institutions, the improvement of the high-quality inclusive insurance system, the improvement of the efficiency of capital market services for inclusive finance, and the orderly promotion of the development of digital inclusive finance. Efforts should be made to prevent and resolve financial risks in key areas, strengthen financial literacy and consumer protection, improve the level of rule of law in inclusive finance, strengthen policy guidance and governance coordination, optimize the environment for the development of inclusive finance, and strengthen organizational safeguards.

According to the Implementation Opinions, the key areas and objects of inclusive financial services focus on small and micro business entities, the national strategy of rural revitalization, people's livelihood, green and low-carbon development, and other subjects and fields. In terms of supporting the sustainable development of small and micro business entities, the "Implementation Opinions" put forward relevant requirements such as "increasing the provision of first loans, renewal loans, credit loans, medium and long-term loans" and "standardizing the development of small and micro enterprise supply chain bills, accounts receivable, inventory, warehouse receipts and order financing". In addition, the "Implementation Opinions" also support the promotion of the expansion of direct financing channels for small and micro business entities, reduce financing costs, require "improve the regional equity market system and business pilots, broaden the financing channels for small and micro enterprises", and "encourage enterprises to issue special debt financing tools for innovation and entrepreneurship." Optimize the monitoring mechanism for the issuance of corporate bonds and capital flows in the fields of small and micro enterprises, 'three rural', scientific and technological innovation, etc., and effectively reduce financing costs." In terms of helping the national strategy of rural revitalization, the "Implementation Opinions" pointed out: "Broaden the financing channels of agriculture-related entities, and steadily promote the right to operate rural contracted land, the right to use collective construction land and the mortgage loan of forest rights." Actively explore and carry out mortgage loans for agriculture-related assets such as live livestock, breeding enclosures, agricultural machinery, and greenhouse facilities. Develop agricultural supply chain finance, focusing on supporting county-level advantageous and characteristic industries. In terms of strengthening support for people's livelihood, the "Implementation Opinions" require the enrichment of financial products and services, strengthen financial services for college students, the elderly and other groups, and put forward the requirements of "supporting financial institutions to enrich financial products such as college students' education and entrepreneurship under the premise of legal compliance and risk control", and also pointed out: "Support the development of savings, wealth management, insurance, funds and other products with pension attributes." Encourage trust companies to develop trust products in the field of pension. In terms of supporting green and low-carbon development, the "Implementation Opinions" require that "green and low-carbon development goals be integrated into services in key areas of inclusive finance".

Chinese modernization is the modernization of a huge population and the common prosperity of all people, which inevitably requires a high-quality inclusive financial system that is compatible with it. The "Implementation Opinions" point out the direction for the next development of work in related fields.

Focus on practical needs and accelerate the development of pension finance

With the deepening of the aging population in the mainland, pension has become a major livelihood issue that the country attaches great importance to and is trying to solve. In recent years, driven by policies, financial institutions have generally recognized the strategic opportunities of pension finance, and are increasing resource investment, accelerating ecological construction, strengthening cooperation with the government, building service brands, and striving to gain first-mover competitive advantage. However, on the whole, the path of pension finance needs to be clear, the fragmentation of products and services needs to be coordinated, resource investment needs to be improved, product supply and innovation need to be strengthened, and the level of financial cooperation needs to be improved.

Looking forward to the future, focusing on the requirements of the Central Financial Work Conference, financial institutions must seize the opportunity, plan scientifically, accelerate the implementation of national policies, accelerate strategic layout, strengthen business coordination, enrich the service system, do a good job in scientific and technological empowerment, and consolidate the foundation of risk control. In terms of the construction of the product and service system of pension finance, there are four areas that need to be focused on: First, in the field of pension finance. Financial institutions should give full play to the rich experience and advantages accumulated in the process of carrying out the first and second pillar business, and take advantage of the opportunity of the development of the third pillar, focusing on increasing innovation in financial products such as pension funds and wealth management around the third pillar, and comprehensively enhance the core competitiveness in design, investment, operation and other aspects, so as to promote the balanced development of the three pillars of pension insurance and improve the supply of the pension system to play a greater role. The second is in the field of pension service finance. Financial institutions should strengthen the construction of pension service scenarios, strengthen the analysis of customer pension service needs, start from the whole life cycle pension service needs of bank customers, and promote the development of commercial banks' pension financial services to comprehensive and personalized financial services including asset management, financing, payment, consulting, consumption, etc. The third is in the field of pension industry finance. Financial institutions should actively explore all-round support for the pension industry, focusing on exploring the development of pension community construction and transformation loans, pension institution construction and transformation loans, intelligent pension base project loans, etc., to open a breakthrough to support the development of the industry. Fourth, strengthen institutional coordination and build a multi-level and wide-coverage pension financial system. Under the financial pattern of separate supervision and operation in the mainland, all kinds of financial institutions have their own strengths, commercial banks have advantages in individual and corporate customers, industrial projects, insurance companies have advantages in pension products and long-term investment, funds and securities companies have advantages in equity investment, wealth management companies have advantages in fixed income investment, trust companies have advantages in products and pension services, and it is necessary for different types of institutions to deepen cooperation and synergy in product and service innovation to achieve complementary licenses. Resource sharing, mutual benefit and win-win results.

Focus on efficiency and security to promote the development of digital finance

The rapid development of the digital economy has brought profound changes in business models and user Xi, and has also laid a good foundation for the all-round digital transformation of financial institutions. The wide application and empowerment of digital technology has greatly improved the quality and efficiency of financial services for the real economy. On the one hand, digital technology has improved the operational efficiency of financial institutions, effectively reduced the cost per unit of customer service, and expanded the coverage of financial services, making financial products and services more inclusive and reaching more long-tail customers. On the other hand, digital technology has also greatly improved the ability of financial services to be embedded in Internet scenarios, and on the basis of big data, financial institutions can effectively improve the accuracy of customer identification and portraits, thereby improving the quality of financial services.

In the future, financial institutions should accelerate digital transformation and enhance digital financial innovation capabilities, and should do a good job in the following aspects: First, strengthen strategic guidance and do a good job in top-level design. Digital transformation is an important project of overall and systematic nature, and strengthening top-level design is the primary task to ensure that digital transformation work starts and advances in a scientific and orderly manner. Financial institutions need to focus on business strategies, clarify the matching degree between transformation needs and their own resources and capabilities, formulate bank-wide and actionable digital transformation strategies on this basis, clarify transformation goals, blueprints and implementation roadmaps, identify transformation breakthroughs, and carry out all-round planning for organizational structure, resource allocation, and cultural construction. The second is to improve technology and data governance capabilities and consolidate the foundation of digitalization. Fully understand the importance of data elements as production factors, promote the orderly sharing and comprehensive application of data, fully activate the potential of data elements, and effectively improve the quality and efficiency of financial services. The third is to deepen the scene service capability and reshape the business model. Deepen the financial application of digital technology, innovate the research and development of financial products, continuously develop scenario-based financial services, expand the boundaries of financial services, and reduce the cost of financial services. Fourth, we need to strike a balance between security and development. On the one hand, financial institutions should build a sound risk management system for digital risks. On the other hand, the regulatory authorities should also continue to strengthen the supervision capacity of technology risks, implement penetrating supervision of fintech innovation, and effectively prevent digital financial risks.