The report of the 19th National Congress of the Communist Party of China put forward that speeding up the improvement of the socialist market economic system focuses on building an economic system that is effective in market mechanism, vigorous in micro-subject and in macro-control. How do you understand these important statements of the report? As an important task of building a modernized economic system, how to improve the pace of socialist market economy?
The report suggested that the capacity of financial to service real economy should be strengthened and the proportion of direct financing should increase.
Direct financing requires the relative stability of the market, the full disclosure of information and the protection of the interests of small and medium investors. Only by building an open and fair capital market can our country effectively and orderly increase the proportion of direct financing.” Tian Lihui, head of Nankai University Institute of Financial Development ,said that regulators should continue to crack down on market holding and cheating, effectively prevent the capital idle asset bubbles, appropriate constraints of relevant regulations, keep the market develop steadily, and direct money to take off the virtual to real.
There will also be failures in market mechanisms, such as over-allocation of financial resources to high-risk areas. Yan Jianfeng , zheshang bank's chief economist said, only by defining the government governance reasonably, dividing the local governance reasonably, and strengthening new momentum to drive development can we make the market become decision power of resources allocation and make the market mechanism more effectively.
Dong Ximiao, a senior research fellow of chong Yang institute of finance in RenMin University, believes that China's financial development is entering a period of accelerated shift, which poses challenges to the current financial regulatory regime. Relevant departments should take targeted measures to deepen the reform of the regulatory system, strengthen the construction of laws and regulations, and improve the corporate governance mechanism.
The report of the 19th National Congress of the Communist Party of China put forward that to deepen the reform of the commercial system, break the administrative monopoly, prevent from market monopoly, we should accelerate reform of the marketization of factor prices, ease the services access restrictions and improve the oversight system for market.
According to zhu Lijia, a professor at the National School of Administration said that in addition to further implementing the reform of the commercial system, there is also a need to strengthen during and after supervision. If bad companies are not strictly regulated, then the penalties for good companies are considerable. Like nature evolution, we encourage to accelerate the birth of new enterprises, to encourage entrepreneurial innovation, but also to speed up elimination violation, severe pollution and unsafe stock enterprise,.the metabolism of market smoothly, the micro main body more vitality.
The report of the 19th National Congress of the Communist Party of China proposes that we should innovate and improve macro-control. National development planning should play a strategic guiding role. At the same time, we should improve the coordination mechanism for fiscal, monetary, industrial and regional economic policies.
How to make fiscal and monetary policy play a good role and make macro-control more effective?
In the aspect of fiscal policy, the 19th report proposes to speed up the establishment of a modern financial system, and establish a central and local financial relationship with clear accountability, financial coordination and regional balance.
In terms of monetary policy, the 19th report proposed a sound monetary policy and a dual-pillar regulatory framework for macro-prudential policies to deepen the reform of interest rate and exchange rate liberalization.
