A Proposal Meeting for National Social Science Fund Special Project Chaired by Professor Li Guangzhong of SYSBS on Research and Interpretation of the Spirit of the 19th NCCPC Was Held in Beijing
On April 15, 2018, a proposal meeting chaired by Professor Li Guangzhong of SYSBS for research and interpretation of the spirit of the 19th NCCPC on National Social Science Fund Special Project: “Research on a sound financial coordination and supervision system: based on the perspective of systemic financial risk prevention” was held at Guangzhou Hotel Beijing. At the meeting, the background, framework and main contents of the research project had an in-depth discussion, and the possible problems and countermeasures were analyzed in depth.
Main experts who were invited and attended the meeting include: Chen Yunxian, former vice governor of Guangdong Province and honorary president of Senior Financial Research Institute of Sun Yat-Sen University, Xu Zhong, director of Research Bureau of People’ s Bank of China, director of Prudential Regulation Bureau of China Banking Regulatory Commission, Li Shanmin, vice-president of Sun Yat-Sen University, Wang Shouyang, dean of School of Economics and Management, UCAS, Jing Linbo, dean of CASSES, Zheng Hongliang, executive deputy editor of Economic Research Journal, Li Tao, assistant principal of School of Economics, Central University of Finance and Economics, Xiong Xiong, professor of College of Management and Economics, Tianjin University, et al.
Professor Chen Yunxian delivered an opening speech
Chen Yunxian, former vice governor of Guangdong Province and honorary president of Senior Financial Research Institute of Sun Yat-Sen University, delivered an opening speech, and pointed out that a series of strategic arrangements for the stability and development of financial reform had been made at the 19th NCCPC, among which the most important is to prevent and resolve systemic financial risks. Today’s proposal meeting is held very timely. It is an important measure to thoroughly implement the spirit of the 19th NCCPC, as well as a useful exploration to perfect and improve the coordination mechanism of financial supervision.
Professor Li Guangzhong, chief expert of the project, on behalf of the research group, reported the project declaration background and main research contents. Professor Li stressed: The report of the 19th NCCPC had repeatedly mentioned the policy guidance of building a sound financial supervision system and holding the bottom line of avoiding systemic financial risks. Professor Li also pointed out the existing merits and demerits of the existing Britain and American supervision models after the financial crisis, based on this, he also said that a systemic imbalance of the market risk distribution state arises because of today’s excessive financial innovation and complicated contracts, and discussed with experts present on the formation logic of real estate bubble, shadow banking, local governmental debt risk as well as their relationship with systemic risks. Finally, Professor Li elaborated the logic relation between the project subtopics, and made an in-depth explanation on the research contents of subtopics.
At the expert proposal stage of the report meeting, Xiao Yuanqi, director of Prudential Regulation Bureau of China Banking Regulatory Commission, spoke first. He pointed out that financial supervision should be based on its national conditions and appropriately learn from the experience of foreign models, and the optimal supervision model should be suitable to the national conditions. He stressed that the purpose of regulation is not only to prevent risks, but also to allow financial support for the development of the real economy and stimulate the endogenous power of financial institutions to prevent risks.
Xu Zhong, director of Research Bureau of People’ s Bank of China, stressed that financial regulation and financial innovation should not be separated but be carried out at the same time. He also pointed out that the incentive mechanism of financial regulation should be improved so as to maximumly avoid the loss of supervision talents and improve the efficiency of supervision. In the future research, the research group can consider the incentive compatibility of regulatory departments in combination with their own advantages in corporate governance research.
Zheng Hongliang, executive deputy editor of Economic Research Journal said that financial risks and financial innovation should be a dynamic relationship that cannot be separated from each other. Risk prevention is the core of supervision. We should be good at summarizing the law of financial risks from the reform and opening-up, and cannot ignore the impact of external shocks on financial risks.
Jing Linbo, dean of CASSES, pointed out that China’s systemic financial risks mainly come from two aspects: one is the self and accumulated risks of the financial system, the other is external shocks, including the extrusion effect of China’ s macro economy and spillover effect of foreign policies; in addition, Jing also put forward his own opinions to the research group on technical operations.
Wang Shouyang, dean of School of Economics and Management, UCAS, stressed that attention should be paid to the accuracy, diversity and independence of scientific research. Academic research should broaden international horizons and expand the influence of research results at home and abroad. Dean Wang took Sino-US Trade War as an example to expound how to apply academic research to specific problems, and indicated the policy significance of paying attention to the research.
Li Tao, assistant principal of School of Economics, Central University of Finance and Economics, said that we should not ignore the subjective and objective cognitive process of financial risks, and attach importance to the connection from objective existence to subjective cognizance. Though there is an objective existence of financial risks, economic individuals may not be able to have a subjective cognizance; therefore, we should strengthen the research of subjective risk cognition. In addition, we should pay attention to the problem of brain drain on the supervision level.
Xiong Xiong, professor of Tianjin University, said that we can make full use of big data to analyze financial risks and use some open source data to collect information extensively. He pointed out that the regulatory focus of financial risks is to define the supervision scope and organizational responsibility.
Li Shanmin, vice-president of Sun Yat-Sen University, on behalf of Sun Yat-Sen University, extended the gratitude for the support of the experts present! For subject research, Professor Li Shanmin emphasized that the future research should be based on the principle of scientific laws and respect of rules and focused on a certain of aspects. On the basis of comprehensively studying the experience and models of different countries, we should take root in China’s reality and adhere to the Party's leadership in financial supervision.
Finally, Professor Chen Yunxian made a summary and said that the focus of research is financial supervision and coordination, including financial policy coordination and regulator coordination, macro and micro prudent coordination, financial regulation vertical coordination, international coordination, etc.
The experts at the meeting said that the project has solid demonstration and abundant data and is of sound research foundation, and pointed out that the future research of the project should be based on China’s national conditions and highlight Chinese characteristics. Chief expert of the project, Professor Li Guangzhong, and main members of the research group including Professor Zhu Shushang, Professor Li Jie, Associate Professor Wang Jiancheng and Associate Professor Zhang Junsheng extended heartfelt graduate for the speeches and guidances of expert leaders at the meeting, and expressed that the research group would turn pressure into impetus and live up to the expectations of the Party and the country. The meeting came to a successful conclusion