The central financial work conference was held in Beijing from Oct. 30 to 31, at which Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, Chinese president and chairman of the Central Military Commission, delivered an important speech.
Li Qiang, Zhao Leji, Wang Huning, Cai Qi, Ding Xuexiang and Li Xi, members of the Standing Committee of the Political Bureau of the CPC Central Committee, attended the meeting.
Xi reviewed the financial work since the 18th CPC National Congress in his speech and analyzed the situations facing high-quality development of the financial sector and arranged relevant work for the current and future periods. Li Qiang made specific arrangements for the financial work.
It was stressed at the meeting that the financial sector is the lifeblood of a nation's economy and a crucial component of a country's core competitiveness. It is imperative to accelerate the building of a nation with a strong financial sector, comprehensively strengthen financial regulation, improve the financial system, optimize financial services, and effectively forestall and defuse financial risks. China will remain committed to the path of financial development with Chinese characteristics and boost the high-quality development of its financial sector to provide strong support for fully building China into a strong country and achieving national rejuvenation through Chinese modernization.
It was pointed out at the meeting that since the 18th CPC National Congress, under the centralized and unified leadership of the CPC Central Committee, the financial sector has provided strong support for the country's overall economic and social development, resolutely prevented and defused major risks, and made important contributions to achieving the goal of building a moderately prosperous society in all respects, and the realization of the First Centenary Goal on schedule.
The Party Central Committee has adapted Marxist financial theory to the specific realities of contemporary China and excellent traditional Chinese culture. It has made great efforts to grasp the regularities of financial development in the new era, continuously promote innovation in practice, theories, and institution in China's financial sector, and explore the path of financial development with Chinese characteristics. It has emphasized the need to follow the centralized and unified leadership of the CPC Central Committee over financial work, upheld the people-centered approach as value orientation, upheld serving the real economy as the fundamental mission of the financial sector, and upheld risk prevention and control as the eternal theme of financial work. The Party has persistently promoted financial innovation and development in the market-oriented approach and by the rule of law, deepened financial supply-side structural reform, coordinated financial opening up and security, and followed the underlying principle of pursuing progress while ensuring stability. These practical and theoretical achievements have not come easily. But we must be very clear that various issues and problems in the financial sector are intertwined and affect each other, and some of them are quite prominent, such as potential financial risks, low quality and efficiency of financial services to the real economy, repeated financial disorders and corruptions, and weak financial supervision and governance capacity. The financial sector should earnestly strengthen its political awareness, bear in mind the country's most fundamental interests, strengthen its sense of mission and responsibility, be determined to solve all these problems, and contribute to building China into a strong country and advancing national rejuvenation by high-quality financial development.
It was stressed at the meeting that now and in the near future, the work in the financial sector must be carried out by upholding and strengthening overall Party leadership, with Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guidance, to implement the guidelines of the 20th CPC National Congress, fully and faithfully apply the new development philosophy in all fields, thoroughly understand the political significance of the financial work and its importance to the interest of the people. It is imperative to accelerate the building of the country's financial strength, promote high-quality development of the financial sector, deepen the financial supply-side structural reform, improve the integrity, expertise and ability of the financial professionals, and strengthen comprehensive regulation to prevent and defuse risks. It is essential for the sector to follow the underlying principle of seeking progress while maintaining stability, strike a balance between development and security, hold the red line of forestalling systemic financial risks, adhere to the path of financial development with Chinese characteristics, accelerate the building of a modern financial system with Chinese characteristics, continue to meet the needs for financial services in the economic and social development and the people's increasing needs for such services, and constantly break new ground in financial work in the new era.
It was emphasized at the meeting that high-quality development is the primary task in comprehensively building a modern socialist country, and the financial sector must provide high-quality services for economic and social development. It is necessary to create an enabling monetary and financial environment and effectively strengthen the provision of high-quality financial services to major strategies, key areas, and weak links. We must maintain a prudent monetary policy and pay more attention to cross-cycle and countercyclical adjustments, enriching the toolbox of monetary policy. We need to optimize the structure of fund supply, channel more financial resources into promoting technological innovation, advanced manufacturing, green development, and supporting small, medium-sized, and micro enterprises, vigorously support the implementation of the innovation-driven development strategy, and coordinated regional development strategy, and ensure national food and energy security. It is essential to activate financial resources that are inefficiently utilized and improve the efficiency of fund utilization. We must make significant efforts in the areas of technology finance, green finance, inclusive finance, pension finance, and digital finance. It is essential to build modern financial institutions and a modern market system, and clear up channels for funds to enter the real economy. It is equally important to optimize the financing structure, give full play to the pivotal role of the capital market, advance the registration-based initial public offering system, develop diversified equity financing, significantly improve the quality of listed companies, and cultivate first-class investment banks and institutions. We should promote the high-quality development of the bond market. It is essential to improve institutional positioning, support large state-owned financial institutions in becoming stronger and better, playing a major role in serving the real economy, and being a cornerstone for financial stability. Strict admission standards and regulatory requirements for small and medium-sized financial institutions must be enforced, and their operation should be based locally with their own distinctions. The functional positioning of policy-based financial institutions should be strengthened, and the insurance industry as an economic shock absorber and stabilizer for social harmony should be given full play.
It is important to strengthen market rules, create a unified and coordinated regulatory framework for the financial market, and promote the formation of long-term capital. Improvements should be made in corporate governance, the modern financial enterprise system with Chinese characteristics, and the management of state-owned financial capital. The channels for bank capital replenishment need to be broadened, and risk isolation between industries and finance must be ensured. We should promote high-standard financial opening up and ensure national financial and economic security. With equal emphasis on both "bringing in" and "going global," we should steadily expand institutional opening up in the financial sector and facilitate cross-border investment and financing, so as to attract more foreign financial institutions and long-term capital to invest and operate in China. We should boost the competitiveness and influence of Shanghai as an international financial center and consolidate and upgrade the status of Hong Kong as an international financial center.
The need was emphasized at the meeting to comprehensively strengthen financial regulation and effectively forestall and defuse financial risks. Financial regulation should be more effective and cover all financial activities in accordance with the law. Regulation of financial institutions, behaviors and functions should be strengthened, and measures should be more penetrative and long-lasting, so as not to leave any room for regulatory gaps or blind spots. Strict law enforcement is required to crack down on illegal financial activities. Risks in small and medium-sized financial institutions should be addressed without delay. It is imperative to put in place a long-term mechanism on handling local government debt risks and a government debt management mechanism suited for high-quality development, and optimize the structure of central and local government debts. Measures should be taken to promote a virtuous cycle between finance and real estate, which includes a better regulatory system for real estate enterprises and fund management, macro-prudential management of real estate finance, and equal treatment for different types of real estate enterprises in meeting their reasonable financing needs. City-specific targeted policies should be adopted to better support both rigid housing demands and demands for improved housing. Quicker steps should be taken on the "three major projects," including affordable housing, so as to build a new development model for the real estate sector.
To ensure that the financial market is operated in a robust and stable manner, issuance of financial products and their transactions should be regulated, expectations should be guided rationally, and efforts should be made to prevent risks from passing through and resonating across different regions, markets and borders. The management of foreign exchange markets should be strengthened, and the RMB exchange rate should be kept generally stable at a reasonable and balanced level. To guard against and defuse financial risks, it is imperative to properly handle the relationship between power and responsibility and refine the accountability system for handling risks that ensures a correspondence between power and responsibility and compatibility between incentives and constraints. The relationship between speed and stability should also be properly handled, and a balance among time, extent and effects should be struck under the basis of ensuring overall stability to defuse risks in a down-to-earth and stable manner. Illegal, criminal and corruption-related activities must be resolutely cracked down on to guard against risks of moral corruption. Risks must be identified, warned, revealed and handled as early as possible, and the mechanism for rectifying financial risks at an early date with hard constraints must be refined.
It was noted at the meeting that strengthening the centralized, unified leadership of the Party Central Committee over the financial work is the guarantee for its good performance. It is imperative to improve the systems and mechanisms for the Party leadership of the financial work, give full play to the role of the Central Financial Commission, and ensure proper coordination. We should also give full play to the role of the Central Financial Work Commission, and strengthen Party building throughout the financial system in a down-to-earth manner. We should give full play to the role of financial commissions and financial work commissions under local Party committees, and ensure that their due responsibilities are performed. The standard of being politically upright, professionally competent and strictly disciplined in conduct must be upheld in training financial officials who are high-caliber, professional, loyal, upright and responsible. Fine traditional Chinese culture should be promoted throughout the financial sector, and all those involved must remain committed to honesty and trustworthiness, never gaining benefits at the expense of moral principles, being prudent and cautious in work, and being in compliance with law and regulations. Efforts must be intensified to advance the rule of law in the financial sector, and promote legislation in key and emerging areas in a timely manner to ensure the sound development of the financial sector.
It was stressed at the meeting that the important speech made by General Secretary Xi Jinping answered a series of major theoretical and practical questions concerning financial development in a scientific manner. It is an important component of Xi Jinping Thought on Economy, an important innovative outcome of Marxist political economics concerning financial issues, and provides fundamental guidance for promoting the high-quality development in the financial sector on the new journey in the new era. All regions and departments must study it thoroughly, have a good command of its gist and consciously implement it. It is imperative to improve the macro financial regulations, accurately grasp the regularity and characteristics of currency and credit supply and demand, and strengthen the dual regulation of the total amount and structure of the currency supply. Efforts must be made to provide high-quality financial services, expand high-level financial opening up, provide quality services for "go global" strategy and the Belt and Road Initiative, and steadily and cautiously push forward the internalization of RMB. It is imperative to optimize the financial supervision mechanism, establish and improve the system of holding those in charge accountable, and therefore effectively forestall and mitigate financial risks in key fields. It is a must to do a good job as far as key tasks are concerned in the financial sector, step up efforts to implement the policies, to keep liquidity reasonable and adequate and financing costs constantly decreasing, and stimulate the capital market so as to better support expanding domestic demand and stabilize foreign trade and investment. Financial support should be strengthened for new technology, new track and new market, and work should be done to accelerate the pace of cultivating new driving forces for economy and new advantages.
It was required at the meeting that all regions and departments, especially the financial sector, should further align their thoughts and actions with the spirit of Xi's important speech and the decision and plans of the Party Central Committee. They should remain goal-oriented and problem-oriented, and comprehensively strengthen the Party's leadership over financial work, do a solid job in strengthening financial regulation, preventing and defusing financial risks and promoting high-quality financial development, accelerate the building of the country's financial strength, do a good job in giving publicity to and implementing the gist of the meeting, strengthen the training of financial professionals, and ensure that the arrangements for specific work are implemented to the letter.
He Lifeng made a concluding speech. Leading officials of the People's Bank of China, the National Financial Regulatory Administration, the China Securities Regulatory Commission, Beijing municipality, and Liaoning, Hubei and Sichuan provinces delivered speeches.
Members of the Political Bureau of the CPC Central Committee and members of the Secretariat of the CPC Central Committee, relevant leading officials of the Standing Committee of the National People's Congress, state councilors, president of the Supreme People's Court and relevant leading officials of the National Committee of the Chinese People's Political Consultative Conference attended the meeting.
Also present at the meeting were members of the Central Financial Commission, leading officials of provinces, autonomous regions and municipalities, and cities specifically designated in the state plan, Xinjiang Production and Construction Corps, relevant central Party and government departments, relevant people's organizations, relevant departments of the Central Military Commission, centrally administered financial institutions, and some enterprises.