Following Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, Yi Huiman, chairman of the China Securities Regulatory Commission, also "appeared" on the news network this evening and was interviewed on the relevant situation of China's capital market.
Yi Huiman said that the impact of Sino US economic and trade frictions on the capital market is objective, but the degree is controllable. At present, the price earnings ratio of the Shanghai composite index is 13 times, which is lower than the world's major stock indexes. It is a market valuation at a historically low level. In the long run, we are very confident in maintaining the sustainability, stability and health of the capital market.
Yi Huiman also said that the total leveraged financing in our market was only 1.2 trillion, only 20% of that in 2015, and the leverage digested 80%. Fully capable and confident to maintain the stable development of the capital market.
Top 10 points of Yi Huiman's interview with news broadcast
1. The impact of Sino US economic and trade frictions on the capital market is objective, but the degree is controllable. The resilience of China's capital market is increasing and the ability to resist risks is improving.
2. In the long run, we are very confident in maintaining the sustainability, stability and health of the capital market.
3. At present, the P / E ratio of Shanghai composite index is 13 times, which is lower than that of major global stock indexes. The market valuation at a historical low shows the great potential of market development.
4. The total amount of leveraged financing in our market is only 1.2 trillion, only 20% of that in 2015. Leverage has digested 80%.
5. The overall off-site allocation is spot like and scattered, and the relevant risk disposal has achieved phased results.
6. We have also prepared a rich and series of toolbox. We are fully capable and confident to maintain the steady development of the capital market.
7. The sci-tech innovation board can help Chinese sci-tech innovation enterprises develop by leaps and bounds, which is completely unaffected by Sino-US trade frictions.
8. The establishment of science and innovation board and pilot registration system reform has entered the sprint stage
9. As always, the capital market will be promoted in a more open market environment. The limit on the proportion of foreign shares of joint venture securities, fund management and futures companies has been raised to 51%, and there will be no limit in three years.
10. The next step will be to deepen and improve the interconnection mechanism of domestic and foreign stock markets, expand the opening of exchange bond markets and improve the opening level of futures markets.
The following is the full text of Yi Huiman's interview on the news network
Yi Huiman, chairman of China Securities Regulatory Commission: the resilience of China's capital market has been enhanced and the ability to resist risks has been improved
Yi Huiman, chairman of China Securities Regulatory Commission, said in an interview with reporters that the impact of Sino US economic and trade frictions on the capital market is objective, but the degree is controllable. The resilience of China's capital market is increasing and the ability to resist risks is improving.
Since the United States upgraded Sino US economic and trade frictions in early May, Shanghai and Shenzhen stock markets have fluctuated to varying degrees. In this regard, Yi Huiman said that from the market operation for a period of time, the capital market has gradually digested and reflected the impact of Sino US economic and trade frictions.
Yi Huiman, chairman of China Securities Regulatory Commission: this also shows that the resilience of the whole capital market is further enhanced and the ability to prevent and control risks is further improved. The market also gradually tends to be rational, and the ecology of the capital market has been further improved. Therefore, with regard to this trade friction issue, I think in the long run, we are very confident in maintaining the sustainability, stability and health of the capital market.
Yi Huiman said that economic fundamentals provided strong support for the capital market. A series of policies and measures to deepen reform and opening up and boost the real economy are gradually implemented, and the overall judgment of stable and good economy is in line with the current reality and future trend.
At present, the P / E ratio of Shanghai composite index is 13 times, which is lower than major global stock indexes such as Dow Jones (19 times), CAC40 (19 times), Nikkei 225 (16 times), DAX30 (16 times) in Germany and FTSE 100 (17 times). The historically low market valuation shows the great potential of market development.
CCTV reporter Zhao Shuguang: how do you evaluate the risks existing in the current capital market?
Yi Huiman, chairman of China Securities Regulatory Commission: we feel that some risks that bring unstable factors to the capital market are generally controllable, which is a very important basic judgment to judge the sustainable health of the capital market. The total amount of leveraged financing in our market is only 1.2 trillion, only 20% of that in 2015. Leverage has digested 80%.
Yi Huiman said that the risk incidence of private equity funds is 0.39% according to the number of institutions in the industry as a whole; The default rate of the exchange bond market was 0.96% by the end of last year (2018); The market value proportion of stock pledge touching the closing line is small; The overall off-site allocation is spot like and scattered, and the relevant risk disposal has achieved phased results.
Yi Huiman, chairman of China Securities Regulatory Commission: as for whether there will be drastic fluctuations if there are major changes in the external environment in the capital market in the future. We have also fully studied and judged this. Under the leadership of the CPC Central Committee and the State Council, the financial stability and Development Commission makes unified dispatching, fully abides by the market law, and fully adheres to the bottom line thinking. We have also prepared a rich and series of toolbox. Therefore, we are fully capable and confident to maintain the stable development of the capital market.
Yi Huiman said that the healthy development of the capital market is inseparable from the support of the real economy, and serving the development of the real economy is the bounden duty of the capital market. At present, the CSRC is firmly promoting the establishment of the science and innovation board and the pilot registration system, so as to enhance the service level of the capital market to improve China's key core technology innovation ability.
Yi Huiman, chairman of China Securities Regulatory Commission: we have basically completed the design of the basic institutional framework, and more than 100 scientific and innovative enterprises have applied. In fact, we can help China's economic transformation and the leapfrog development of China's science and innovation enterprises. This is completely unaffected by the Sino US trade friction. We feel that under this background, we have the responsibility to make the science and Innovation Board better and more stable, and truly achieve our strict standards and steady start.
Yi Huiman said that the establishment of the science and innovation board and the pilot registration system reform has entered a sprint stage. This reform will not only achieve a breakthrough in key institutional innovation, but also become a test field for reform, so as to drive the comprehensive deepening reform of the capital market.
Yi Huiman, chairman of China Securities Regulatory Commission: for example, how to increase the judicial supply to increase the cost of violation of laws and contracts. How to increase medium and long-term funds to further improve our market structure. Another example is how to further improve the supervision of the whole transaction and improve the effectiveness of supervision. For example, how to judge the current refinancing, reduction, delisting, etc. I think these key and sensitive issues need to be gradually solved by the CSRC in the next reform.
Yi Huiman said that the reform of China's capital market will, as always, be promoted in a more open market environment. At present, the CSRC has raised the limit on the proportion of foreign shares of joint venture securities, fund management and futures companies to 51%, and there will be no limit after three years. Next, the CSRC will deepen and improve the interconnection mechanism of domestic and foreign stock markets, gradually expand the opening of the exchange bond market, and further improve the opening level of the futures market.
Guo Shuqing: China's financial system can withstand the impact of external changes
On May 27, Guo Shuqing, Secretary of the Party committee of the central bank and chairman of the China Banking and Insurance Regulatory Commission, also received a news broadcast interview.
What impact will the US side's escalating Sino US economic and trade frictions have on China's economy? Does China's financial industry have enough ability to resist external shocks? How will the financial industry respond to market changes? Guo Shuqing, Secretary of the Party committee of the people's Bank of China and chairman of the China Banking and Insurance Regulatory Commission, was interviewed by reporters on the 27th.
With limited influence, China is fully capable of coping with economic and trade frictions
Reporter: Recently, the United States has been escalating economic and trade frictions. How much impact has it had on China's economy?
Guo Shuqing: from China's perspective, the United States can certainly increase tariffs to the limit level, but its impact on China's economy is limited. The impact of economic and trade frictions is completely controllable, and we have the ability and confidence to deal with it well.
First, China's domestic consumption has become the most important driving force for economic growth. The vast majority of products exported to the United States are very suitable for domestic sales. China is in a period of consumption upgrading, and the rapidly expanding huge market will absorb a large part of them.
Second, great progress has been made in market diversification. One belt, one road initiative has been successful in the overseas sales of China's products, and the market outside the United States welcomes more Chinese products.
Third, the United States cannot completely restrict the export of Chinese products to the United States. A considerable part of Chinese products will also be exported to the United States, either because there is no substitute, or because American Importers are willing to share the cost of tariffs.
Fourth, China's industrial structure is accelerating adjustment and upgrading, and a certain proportion of production needs to be transferred overseas, which is conducive to our industrial upgrading, further improve labor productivity and accelerate China's high-quality development.
Fifth, the impact on China's financial market is limited. Financial markets are often sensitive and prone to overreaction. There were strong fluctuations last year. China's economy has made a good start in 2019, which can form an effective support for the financial market. At present, its toughness is significantly enhanced and its further impact will be less.
History has long proved and will continue to prove that blockade or sanctions can not stop China's development, but will stimulate our determination to start businesses and innovate and accelerate the pace of transformation and development. China's economy has strong resilience, complete industrial structure, broad market space and great development potential. The long-term sound economic fundamentals are the fundamental support to deal with risks and challenges. In particular, we have unique political and institutional advantages, which is a strong guarantee to deal with all kinds of risks and challenges.
Stable operation China's financial system can withstand the impact of external changes
Reporter: the market is worried about whether China's financial system can withstand changes in the external environment under the background of the US escalation of Sino US economic and trade frictions. In your opinion, what is the ability of China's financial system to deal with external shocks? Is there any need to worry?
Guo Shuqing: worry is unnecessary. In recent years, we have continued to deepen reform, expand opening up, improve corporate governance structure, optimize institutional system, standardize market order, prevent and resolve financial risks in key areas. The governance effect of financial chaos is obvious, the industry runs smoothly and the risks are generally controllable.
In recent years, we have dismantled shadow banks and focused on illegal, nested, low transparency and hidden risk products. In the past two years, we have reduced the high-risk assets by 12 trillion yuan. The banking system strengthened the disposal of non-performing assets, revitalized the credit stock, and disposed of 3.48 trillion yuan of non-performing loans in two years. We severely investigated and dealt with illegal financial activities, resolutely punished illegal financial groups and high-risk institutions, significantly reduced the pressure on illegal online lending platforms, and curbed the barbaric growth in the financial field.
Frankly speaking, when the Sino US economic and trade frictions first occurred last year, everyone was not prepared enough and was a little confused. The financial market overreacted a little, and the stock market and foreign exchange market fluctuated greatly. But after more than a year, it seems that the problem is not so serious, and the actual impact on the economy is very limited. The economic trend is stable and positive, structural adjustment is carried out in an orderly manner, and the transformation of old and new kinetic energy continues to advance.
So far, this year's financial market, whether the stock market, bond market or foreign exchange market, is relatively stable. I believe the impact will be smaller. image