Monetary Authority of Singapore. (Source: Nanfang Plus)
Placing equal stress on supervision and innovation
“Regulation is one method of boosting innovation. The government should pay equal attention to both sides.” emphasized Dr. Pei, who has over 30-year experience in financial institutes and related government departments.
When talking about how Guangdong ought pay equal attention to regulation and development, Dr. Pei proposed that the regulatory departments should just stipulate a general plan or strategy, aiming to optimize the financial mechanism, create a better environment and cultivate a proper ecosystem, leaving the details to institutions and professionals.
More specifically, Dr. Pei advised that Guangdong should focus on accelerating supply chain financing, international trade financing and fintech innovation, based on its own conditions. For instance, the province could accelerate the deployment of block chain technologies in logistics to increase productivity.
Many experts and finance professionals indicated that regulators should maintain the stability of policies and avoid over regulations when keeping strict supervision. New problems brought by FinTech could be settled by progressively perfecting our country's legal framework and enhancing the guild’s self-regulation.
They also believe that the financial regulators should define the scope of regulation and clarify the aim of boosting economic development, focusing on regional and national economic strategies.
Dr. Pei recommended that Guangdong’s high-quality economic growth is relying on an effective financial regulatory mechanism. Only when the focus is on providing services to representative industries and exploring new roads and cooperation with industries, can the regulator fulfill its duty.