On The Theory And Practice Of Chinese Construction Of The Modern Financial System Since The 18th Party Congress Of The Communist Party Of China

Finance is the core and lifeline of the modern economy and the financial reform is an important part of the economic reform.Building a modern financial system stable,inclusive and sustainable is of far-reaching importance for promoting economic and social stability and healthy and sustainable development.Since the 18 th Party Congress,the CPC Central Committee and the Chinese government have improved the theoretical and practical exploration of China's modern financial system.It is the continuation and development of the CPC Central Committee and Central Government's exploration of the theory of financial system reform and the construction of modern financial system after the implementation of reform and opening up in 1978.Before the reform and opening up,China implemented a highly centralized socialist planned economy system.In order to meet and meet the needs of a highly centralized planned economic system,the financial sector has established a "unified" banking system model.The organization of the banking system is single and completely with a planning orientation.The banks are in one set of management and operation.There is no independent central bank mainly relying on administrative means rather than economic and legal means to engage in financial activities.The bank credit has too many dead tubes and other defects.All these result in the entire financial system lack of vigor and vitality.There is no initiative,enthusiasm and creativity.Therefore after a long period after the start of economic system reform,the main task of financial reform is to solve such problems as imperfect financial organization,lack of market-based subject and object,lack of innovation power,imbalance of financial market structure and imperfect financial laws.From the implementation of the reform and opening up to the 18 th Party Congress,China's financial reform has undergone two stages.The first phase is the recovery of financial organizations and the construction phase of the financial system(from the third Plenary Session of the 11 th CPC Central Committee in 1978 to the third Plenary Session of the 14 th CPC Central Committee in 1993).At this stage,the following major decisions of the CPC Central Committee took great effect on the reform of the financial system.The first one is that in December 1978 the third Plenary Session of the 11 th CPC Central Committee decided to implement the reform and opening up and is the opening of China's reform and opening to the outside world.The second one is that in October 1984 the third Plenary Session of the 12 th CPC Central Committee adopted “The Decision of CPC Central Committee on Reform of the Economic Structure”.This is a preliminary and clear top-level design for the reform of China's economic system.The third one is that in 1987 the 13 rd Party Congress put forward for the first time that operation mechanism of the socialist planned commodity economy system is the “the state regulating the market and the market guiding enterprises”.It is clear that the reform of China's economic system should be introduced into the market mechanism.After this stage of reform,China's financial organization system has been initially formed and the market mechanism of the financial field has been expanded.The second stage is the comprehensive market-oriented reform and the preliminary formation stage of the modern financial system(from the third Plenary Session of the 14 th CPC Central Committee of 1993 to the 18 th Party Congress of 2012).At this stage,the two decisions made by the Party Central Committee and the State Council speeded up the pace of financial system reform.The first one is “The Decision of the Central Committee of the Communist Party of China on Establishing socialist market economic system” in the third Plenary Session of the 14 th CPC Central Committee in 1993.The second one is “The Decision on the Reform of the Financial System” made by the State Council on December 25 th of the same year.These two decisions have set the tone for China's financial reform.The financial reform at this stage includes two aspects.Firstly,the governance and rectification of the financial industry and the supporting reform.It includes such concrete measures as to integrate the official exchange rate,the exchange rate adjustment,the black market exchange rate implemented for many years,to carry out the floating exchange rate regime to accelerate the pace of advancing China into the global economy and the world the financial system,to establish three policy banks,i.e.National Development Bank,China Import and Export Bank and National Agricultural Development Bank to separate the policy operations from the commercial ones,to rename the original city credit cooperatives as City cooperative banks later changed its name to the city commercial bank,to promote to establish modern commercial banks named after a city in relatively developed cities such as Beijing,Shanghai and Shenzhen,to promulgate and implement “The Law of People's Bank of People's Republic of China”,“The Law of Commercial Bank of People's Republic of China”,“The Law of Negotiable Instruments Law of People's Republic of China”,“The Law Insurance of People's Republic of China”,“The Law of Security of People's Republic of China” so as to carry out the initial formation of the legal system framework for financial activities,to carry out the management of assets and liabilities for the commercial banks,to cancel the credit scale management to improve the financial supervision,the establishment of Chinese Securities Regulatory Commission(hereinafter referred to as CSRC),China Insurance Regulatory Commission(hereinafter referred to as the CIRC),so as to form the people's Bank Supervision,monetary policy and banking Chinese Commission is responsible for the securities and futures industry regulation,Chinese CIRC is responsible for the regulation of the insurance industry regulatory system.Secondly,the overall reform of the financial system,including the state-owned financial institutions market reform and perfect the financial supervision system,deepen the reform of the capital market,accelerate the pace of reform of the interest rate market to promote the all-round opening of the financial industry,improve the RMB exchange rate system,promote the reform of the rural financial system,and vigorously promote the financial infrastructure construction,construction of inland port mutual financial industry interaction,actively respond to the new problem of financial field etc..In a word,great achievements have been made in the financial reforms and the construction of the financial system before the 18 th Party Congress,but the reform and the financial system itself still have shortcomings.One is the paying of more attention to the problem oriented and less emphasis on the value orientation in the process of reform and construction of financial system in finance i.e.lacks comprehensive and systematic exploration and three-dimensional financial reform theory and construction.The second is that the established financial system still has structural and functional deficiencies risks the ability is not strong enough in the global allocation of resources.The third is that the financial policy system is not perfect,the operation mechanism of monetary policy in regulating the number of effect declines,poor transmission mechanism,interest rate policy is not enough,the lack of independence of monetary policy.The banks cannot effectively regulate the balance of payments,maintain the higher cost of a stable exchange rate,the interest rate market reform process is slow,the problem of enterprise risk consciousness.The fourth is that the trend of mixed operation of financial institutions and supervision mode does not match.We can not fully guarantee the sustained and healthy development of the financial industry.To solve the above problems,since the 18 th Party Congress the Central Committee of the party and the Chinese government's construction of socialism China around financial theory system,market system and supervision system,discussed in-depth,systematic and comprehensive theory,made China economic development has entered a new normal judgment,“the development of ideas and innovation,supply coordination,green,open and sharing” measuring structural reforms into the financial reform and build a modern financial system,“clearly put forward to promote sound macroeconomic stability,support the real economy development of the modern financial system” as the financial system reform of the basic objectives and main tasks,puts forward the idea of a more comprehensive system of financial reform and build a modern financial system.These ideas include:To further improve the financial market system,financial system,financial management system of state-owned capital and foreign exchange market system;To further improve the modern enterprise system,improve corporate governance structure,ownership structure,incentive mechanism and risk control mechanism;To further open up the financial industry,the development of non-state-owned small and medium sized banks;the construction of multi-level capital market,equity financing channels,develop and standardize the bond market,increase the proportion of direct financing;To improve the insurance financial compensation mechanism,establish catastrophe insurance system,the development of Inclusive Finance;abundant levels of financial markets and products,improve the RMB exchange rate formation mechanism;improve the degree of internationalization of the RMB,sound reflecting market supply and demand Treasury yield curve;To promote two-way capital openness,cross-border capital and Convertibility of financial transactions,to strengthen the construction of capital flows and external debt management system under the framework of macro Prudential Management,capital account convertibility;To sound financial supervision and coordination mechanism,make up the risk supervision early warning and early intervention mechanism of the short board;To strengthen the financial infrastructure and regulatory co-ordination and interoperability,clear central and local financial supervision and risk management responsibility to protect the financial interests of consumers,strengthen financial orderly competition,improve financial risk prevention and control mechanism;the establishment of a deposit insurance system,improve the market exit mechanism of financial institutions;To strengthen the financial infrastructure;To fully guarantee the stable and efficient operation of financial markets;Thus,the structure of the socialist financial theory with Chinese characteristics has been formed.In the construction of financial reform and practice of the modern financial system,with the China entered the deepening of reform in new era,the CPC Central Committee to actively explore and develop a series of effective measures.To accelerate the establishment of China socialism modern financial system,to correct the excessive pursuit of JDP growth,as the scale of economic development,ignoring the quality of economic development,unreasonable industrial structure,financial the development of the virtual reality,tend to deviate from the service of the real economy;To summarize the domestic and foreign financial industry development experience,the development of deepening the reform measures,improve the financial organization,to promote the country's financial legislation,to guide and promote the essence of financial service entity economy to return;To deepen financial reform,including actively and steadily push forward the reform of financial institutions.To strengthen the construction of multi-level capital market system,broaden the channels of insurance funds to support the real economy;We should develop Inclusive Finance and green finance,improve the framework of financial regulation and control,improve financial risk prevention and control system,improve financial supervision system,improve financial supervision measures,and improve the specialization level of financial supervision.After five years of steady hoof walked quickly push forward the comprehensive deepening of reform,resolutely get rid of the drawbacks of the financial system and mechanism,strengthen systemic reform,integrity,collaboration,expand the breadth and depth of the reform pressure stubble,the breakthrough of financial reform,the basic realization of the goal of financial reform party of the 18 th Party Congress and established in the third Plenary Session of the 18 th CPC Central Committee.Since the 18 th Party Congress the main experience of Chinese financial reform can be effectively promoted and achieved a series of significant achievement.First,always adhere to the centralized and unified leadership of the party to the financial work,insist on maintaining stability of the general work guideline,strictly follow the rules of the financial reform and development,unswervingly follow the road of reform and development of financial market;Second,adhere to financial services in the real economy,correctly handle the relationship between finance and economy,guarantee the correct development direction of financial reform;Third,adhere to the correct understanding and handling of the financial reform,development and stable relationship,always put the service of the real economy,prevention and control of financial risks,deepen financial reform "as the three main tasks in the field of Finance Party,to emphasize the inherent connection between the three tasks,the dialectical relationship between the embodiment of financial reform,development and stability in practice.That is,reform is the motive,development is the purpose of the reform,stability is a prerequisite for reform and development;Fourth,adhere to the prevention and control of systemic financial risk in a more important position,strengthen financial risk prevention awareness and sense of responsibility,construction and adapt to the development of the financial market supervision system of financial supervision,clear targets and goals specification and scope of financial regulation,financial supervision innovation means;Fifth,adhere to financial innovation and financial supervision and coordination development,promote the reform of the financial governance of Institutional Firms,and actively solve the mixed operation and divided supervision of the mismatch problem,promoting the corporate governance structure and the supervision system reform,change the regulatory power scattered,low efficiency phenomenon,solve the asymmetric regulatory responsibilities the problem.Of course,the reform is a process of gradual deepening and continuous development,and financial reform and development are the eternal theme of economic reform and development.Chinese the current financial system still needs further improvement and development,and should be in the following aspects.The first one is to further meet the conditions of the construction of modern financial theory system,including: financial reform and innovation concept,improve the system of financial theory,relationship between right and scientific process of financial reform,development and stability,conducive to the construction of financial the healthy development of the relationship between government and market;The second one is to continue to promote prudent financial system reform,including: promoting financial reform with democracy and the rule of law and the way of thinking,adhere to the overall system of coordination of financial reform,constructing a steady and efficient and inclusive development of the financial system;The third one is to improve the governance structure of financial companies,including: construction a scientific and reasonable incentive mechanism,enhance the risk control ability,strengthen the effectiveness of governance institutions perform their duties,We should give full play to the leading function of the party organization of the enterprises.The fourth one is that we should build an integrated regulatory system,including: building a unified regulatory mode,improving the macro prudential regulatory framework,strengthening the supervision of market conduct,and promoting the innovation of financial regulation.