Interview with Liu Feng, Chief Economist of Galaxy Securities: Accelerate the reform of the capital market and stimulate the potential and vitality of sustainable economic development

Per reporter: Wang Yandan Per editor: He Jianling

After the reform and opening up, China's economic dragon took off and achieved world-renowned achievements. Among them, the contribution of the capital market to the development of the socialist market economy, the popularization of the concept of marketization in the hearts of the people, and the role of improving the efficiency of resource allocation are obvious to all.

2021 is the beginning of the "14th Five-Year Plan" and the beginning of a new journey of comprehensively building a modern socialist country. Under the new starting point and the new development pattern, the capital market has become more and more important to the development of the real economy.

How to evaluate the role and historical position of the capital market in China's economic development? In the future, what are the new missions and tasks of the capital market? In this regard, the Daily Economic News reporter interviewed Liu Feng, chief economist of Galaxy Securities.

Talk about the role: to help the transformation and upgrading of the real economy

Liu Feng said that the rapid development of China's economy in the past four decades is inseparable from the support and assistance of financial services and capital markets. At the same time as the real economy is developing, the capital market is also developing and growing, which is interconnected. In terms of scale, the progress of China's capital market in the past three decades has been very remarkable, and it has traveled the road of developed countries for more than two hundred years in thirty years, which is a very remarkable achievement. In terms of total economic volume, China currently ranks second largest in the world, and the size of the stock and bond markets also ranks second in the world. At a GDP growth rate of 6%, China will most likely surpass the United States and become the world's largest economy in the next decade. This also puts forward higher requirements for the high-quality development of China's capital market.

He pointed out that in the past four decades, China has actually implemented a financial system based on indirect financing, that is, whether it is monetary policy or fiscal policy, mainly through the transmission of the banking system to support the development of the real economy, commercial banks undertake the main task of providing investment and financing and capital operation for the real economy. However, in the process of credit delivery, banks are constrained by the scale of credit, capital adequacy ratio, deposit-loan ratio and other regulatory constraints, single bank credit is difficult to meet the growing diversified financing needs of the real economy, especially the financing channels, costs and efficiency of private enterprises are affected and restricted to a certain extent, financing difficulties and financing expensive problems, long-term has not been well solved, so that the marginal output rate of investment has dropped sharply, and the ability to innovate is also declining. In this context, the urgency and importance of increasing the proportion of direct financing and improving the adaptability of financial services have become more prominent. Standing at a new starting point, the capital market needs to exert more efforts to build capacity that matches the global status of China's economy and help the transformation and upgrading of the real economy.

At the same time, Liu Feng pointed out that on the investment side, with the development of China's economy, the middle class continues to expand, and the demand for residents to diversify asset allocation and increase property income is increasing. Capital markets can broaden the scenarios and tools that provide enterprises and society with investment and financing, and optimize the allocation of assets and risks. Enriching the variety of investment and financing and developing the capital market can give investors the opportunity to share the benefits and dividends of enterprise growth and expansion by purchasing the stocks and bonds of relevant listed enterprises, and bear risks in the form of holding rights and interests; as shareholders and creditors, truly experience the "ownership" consciousness and rights of "being the master". Effective capital market can reduce unfair arbitrage opportunities through the high-speed flow of information, so that the value of enterprises is more reasonable, so as to form a market ecology of survival of the fittest; so that limited capital and other factor resources can be optimally allocated, but also help residents to rearrange their financial portfolio, improve income and risk structure, increase the proportion of property income and the opportunity to achieve "financial freedom"; so that the people can truly experience the sense of participation, responsibility and sense of gain. Thus, the overall welfare and happiness level of society has been continuously and effectively improved.

Talk about ideas: five aspects to promote the development of the capital market

For the next development of the capital market, Liu Feng put forward five ideas:

One. Continue to improve various systems, make up for shortcomings, and create conditions for the reform of the market-wide registration system. The reform of the registration system of the Science and Technology Innovation Board has been implemented for more than a year, and the reform of the registration system of the ChiNext Board has also exceeded half a year, and it is necessary to summarize the problems exposed from practice, comprehensively sort out the shortcomings in the reform of the registration system, actively improve and optimize various systems; promote the implementation of the new delisting regulations and continuously improve them in the process of practice; create a market ecology of survival of the fittest to achieve the effective allocation of capital market resources.

Two. Enhance the investor experience and crack down on all kinds of violations of laws and regulations with "zero tolerance". In particular, it is necessary to strengthen investor protection, improve the efficiency of supervision and punishment, and quickly investigate and deal with violations of laws and regulations that infringe on the interests of investors, and crack down on them in a timely manner; investors can obtain compensation through legal channels for losses suffered in violations of laws and regulations.

Three. Enhance the professional level of institutional investors and vigorously develop the asset management industry. Compared with overseas mature markets, the overall scale of Asset Management in China accounts for a relatively small proportion, which includes historical reasons such as late start-up, as well as factors such as low professionalism and low investor trust among institutional investors. At present, the scale of financial assets for investment by Chinese residents exceeds 100 billion yuan, but the scale of asset management is only more than 50 trillion yuan, and the scale of wealth management still has room for growth exponentially.

Four. Improve the quality of listed companies, and encourage the listing of new formats and new economy companies. Encourage listed companies to revitalize stocks, improve quality and efficiency, and transform and develop. Strengthen the main responsibility of listed companies, increase the supervision of information disclosure, force listed companies to improve the quality of governance, and treat the rights and interests of all stakeholders fairly.

Five. Continue to promote the high-level two-way opening up of the capital market. Continuously optimize and enrich the paths and products for foreign investment in the domestic capital market, smooth the channels for domestic capital to invest in overseas markets, strengthen cross-border regulatory cooperation, enhance cross-border regulatory capacity building, and enhance the global financial resource allocation and management capabilities of financial institutions.

Liu Feng pointed out that the capital market shoulders a new mission and new task to help economic transformation and development, and comprehensively deepening the reform of the capital market is of great importance to achieving the economic and social development goals of the "14th Five-Year Plan". While summarizing the past experience, the reform of the capital market should grasp the key points and accelerate its progress, lay a solid financial infrastructure for China to cope with all the complex situations in the present and future periods, and stimulate the potential and vitality of China's economy for further sustainable development in the new era.

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