Marking its third volume, CF40’s 2019 Jingshan Report 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 & legal environment that can better support innovation; protect #IP 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.
Report in English: cf40.org.cn/uploads/201911…
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