Thread by @ChinaFinance40

CF40 just released its 2019 Jingshan Report. Marking its third volume, this year it
focuses on how and what kind of financial innovation can better serve the
high-quality development of the economy. Overall, it has put forward eight
policy recommendations:

1. Create a policy, institutional and legal environment that can better support
innovation;protect intellectual property rights;implement competitive
neutrality; further optimize the legal system for firms’ bankruptcy and
restructuring; and establish a market clearing mechanism;

2. Develop an “optimal financial structure” that is compatible with high-quality
economic development; develop multi-layer capital markets and encourage financial institutions to better serve innovation activities and #SMEs;

3. Reduce direct government control over the #capital market and lower policy
uncertainties;

4. Explore the synergy between banks and the capital market, and promote the
transformation of banks’ service model to one that combines the function of
commercial #banks and #investment banks;

5. Control the pace and intensity of shadow banking regulation to reduce policy distortion; unify regulatory standards for asset management products to
mitigate regulatory arbitrage;

6. Expand regulatory coverage to all industries; regulate the business model and activities of the digital financial industry;

7. Internationalization of #RMB should serve as the anchor of #China’s financial opening; implement transparent and prudent monetary and exchange rate policies; develop a rational system of financial markets and institutions and adopt a negative-list regulatory approach;

8. Adapt the regulatory system to reflect emerging financial innovation; balance the relationship between innovation and stability.

The overview of the report: mp.weixin.qq.com/s/2AZX9k5WkacM…