Mayor Chen Jining, Governor Yi Gang, President He Ping, Chairman Yi Huiman, Administrator Pan Gongsheng, ladies and gentlemen, dear friends:
It is a great pleasure to attend the 2020 Annual Conference of Financial Street Forum. First, I would like to extend warm congratulations on the convening of this year’s forum, and wish it a complete success. Facing the profound changes in our internal and external environments, China’s financial sector has unswervingly followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, deepened reforms on all fronts, strictly held the bottom line of risk prevention, served the real economy, and contributed to high-quality development. We will work in accordance with the requirements laid out just now by Vice Premier Liu He in his remarks, and reshape the new edges for financial development in the creation of a new development pattern. Here I would like to share my opinions on four aspects.
I. We will comprehensively enhance the inclusiveness of finance
The nature of socialism with Chinese characteristics determines that our financial sector must cater to hundreds of millions of people in the country. In a capitalist society, finance is an important cause of polarization. Amid the COVID-19 pandemic, the gap between the rich and the poor in some countries is widening, which is largely attributed to the considerable divergence of their financial markets from the real economy. For instance, the stock market in some country has witnessed exceptional boom, as reflected by the fact that since the beginning of this year, the increased market cap of five large companies has accounted for over 80 percent of the total rises in its market. Here in China, however, we shall remain even more committed to the new development philosophy, and better leverage the role of finance in adjusting industrial structure, optimizing income distribution and improving social welfare.
In China, 99 percent of the population now has access to basic financial services, with banking outlets covering 96.6 percent of towns. Each Chinese resident has 8.06 bank accounts and 6.01 bank cards on average, and the personal settlement accounts opened in rural areas take up 40 percent of the total. Two-thirds of micro, small and medium-sized enterprises (MSMEs), as well as tens of millions of self-employed businesses and ordinary rural households can obtain bank loans. Government-funded or government-subsidized medical and health insurances have benefited all urban and rural residents. These are extraordinary achievements even in the global context. However, that’s not enough. Given that the contradiction between the unbalanced and inadequate financial supply and the multilevel and diverse financial demand remains relatively salient, much work remains to be done to achieve the goal of inclusiveness in the finance sector.
We must steadfastly advance the supply-side structural reform of the financial sector. To be specific, we should cultivate small and medium-sized financial institutions, while developing large and super-large financial enterprises. In the meantime, we should also foster both specialized professional institutions and one-stop institutions with a comprehensive business scope. Financial entities of different types should remain committed to their roles, learn from each other’s strengths to offset their own weaknesses, and benignly compete and cooperate with each other, in a bid to build together a prosperous financial sector. All financial institutions should speed up digital transformation, which is an inevitable way to improve their ability to serve the public.
Deepening the internal governance reform of financial institutions remains an imperative task. In this regard, we must face up to the hidden risks and violations of laws and regulations that have been exposed, resolutely punish corrupt officials, and spare no efforts to recover the losses of the country and the people. Financial institutions of all sizes, including city commercial banks, rural credit cooperatives, trust companies and leasing companies, must establish and improve the modern corporate system. In this process, the key is to strengthen the corporate governance structure, and strictly select senior executives who are loyal, professional,clean and pragmatic.
Supervision and regulation should be further strengthened and improved, so as to channel financial resources to…