Last week, the 14th Lujiazui Forum opened in Shanghai. This forum is the first time that major leaders of the national financial management department have collectively spoken out on public platforms after the National People's Congress and the National People's Congress announced the reform of the national financial regulatory system, and many expectations have been placed on it. Jingtai interpreted the guest's comments and trends as follows.

01 | Li Yunze, Secretary of the Party Committee and Director of the National Administration of Financial Regulation: Li Yunze, who officially launched the "International Board" of Shanghai Reinsurance, said that he would spare no effort to support the upgrading of the Shanghai IFC and constantly enhance its global influence and radiation. The State Administration of Financial Regulation and Shanghai Municipality will jointly release the Implementation Rules on Accelerating the Construction of Shanghai International Reinsurance Center, officially launching the "International Board" of Shanghai Reinsurance. Increase financial support for new types of consumption and service consumption, and promote bulk consumption of new energy vehicles, green household appliances, etc. Improve foreign trade credit and export credit insurance services, assist enterprises in stabilizing orders and expanding markets, seize new opportunities in new fields and tracks, continue to increase financial supply in key areas such as advanced manufacturing, strategic emerging industries, and traditional industry transformation and upgrading, and strongly support the acceleration of the construction of a modern industrial system. Continuously rectify the chaos in the financial market and severely punish serious illegal and irregular behaviors. Steadily resolve existing risks and resolutely curb incremental risks. Focusing on the structural adjustment and optimization of the financial system, we will continue to optimize the financing structure, financial institution system, market system, and product system, and further enhance the adaptability of financial services to the real economy. Guide financial institutions to firmly establish a correct business, performance, and risk perspective, strengthen corporate governance, transform business mechanisms, improve management processes, and accelerate the establishment of a modern financial enterprise system with Chinese characteristics. Adhere to the combination of "bringing in" and "going out", steadily promote the high-level opening up of the financial industry to the outside world, and continue to create a market-oriented, legal, and international business environment. In the fields of wealth management, green finance, elderly care and health, asset management, etc., we warmly welcome foreign institutions with stable operations and excellent qualifications to come to China for business development, and encourage qualified foreign institutions to participate in various business pilot projects.

02 | Yi Huiman, Chairman of the CSRC: Strengthen the influence of a large number of commodity futures prices. Yi Huiman mentioned in his speech that the CSRC will seriously focus on the next round of three-year action plan to promote the improvement of the quality of listed companies, work together with relevant parties to improve the long-term comprehensive regulatory mechanism, continue to improve the quality of information disclosure, maintain a high-pressure situation, and severely punish financial fraud, illegal occupation and other acts to promote listed companies to improve their governance capabilities Competitive ability, innovation ability, risk resistance ability, and return ability, solidifying the internal foundation of the valuation system with Chinese characteristics. Yi Huiman pointed out that we should strengthen the coordinated supervision of stocks, bonds, funds and futures, and promote the formation of joint regulatory forces. Accelerate the regulatory transformation of various business lines such as issuance, listing, institutions, and bonds, strengthen the construction of regulatory transparency, and focus on improving the level of regulatory technology and intelligence. Continue to adopt a "zero tolerance" attitude, crack down on various illegal and irregular behaviors and market chaos, and focus on strengthening the maintenance of market order and ecological shaping after the comprehensive implementation of the registration system. At the same time, Yi Huiman said that in the next step, he would continue to vigorously develop equity funds, promote the total amount of public funds industry, optimize the structure, support the steady development of securities, funds, futures, and private equity management products, guide private equity investment institutions to standardize and develop healthily, and further promote various medium and long-term funds to increase equity asset allocation. At the same time, it is closely focused on the high-quality direction of serving the real economy to study the system of capital market differentiation, increase innovation and institutional supply of products such as stock bond financing and merger and acquisition financing, and strengthen the influence of a large number of commodity futures prices. In addition, Yi Huiman said that recently, stock volatility has increased, the rotation of hot spots in the sector has accelerated, and discussions on quantitative trading, market fairness, short-term speculation of funds, and responsibilities of industry institutions have increased. The CSRC attaches great importance to the supervision of the capital market, will continue to strengthen the monitoring and supervision of market transactions, do a good job in tracking and analyzing new trading methods such as quantitative trading, resolutely crack down on insider trading, Market manipulation and other violations, and earnestly maintain a healthy market order and ecology.

03 | Pan Gongsheng, Deputy Governor of the People's Bank of China and Director of the Foreign Exchange Bureau: China's economic operation has generally maintained a steady upward trend. In recent years, China's financial cycle has been relatively stable. Since 2020, the Yield to maturity of 10-year treasury bond has fluctuated narrowly between 2.4% and 3.4%, with the range between the highest and lowest points being less than 100 basis points, which is significantly lower than the fluctuation of the yield of 10-year treasury bond of the United States by nearly 400 basis points over the same period. Pan Gongsheng responded to the recent exchange rate fluctuations. He stated that since 2022, with the rapid tightening of financial conditions in the United States, the global financial cycle has entered a downward period, and emerging economies are once again facing pressure such as currency depreciation. Compared to several times in history, this round of currency depreciation in emerging economies has been relatively slow. As for the reason behind China's relatively stable financial cycle, Pan Gongsheng said that it is China's long-term adherence to a prudent monetary policy. China's monetary policy adheres to the principle of "giving priority to ourselves", adheres to cross cycle and internal and external balance orientation, does not follow the Federal Reserve's "big expansion", and does not engage in competitive Zero interest-rate policy or quantitative easing policies. "China's stable financial cycle provides a suitable environment for the operation of the economy and financial market. The market liquidity is reasonable and abundant, providing sufficient and stable financing for the real economy. The credit pulse is an important indicator to describe the changes in the financial cycle, reflecting the marginal change direction of the financial cycle. Since 2023, China's credit pulse has turned positive and upward, indicating that the role of credit in supporting the economy is increasing." Pan Gongsheng said. He pointed out that the competitive real interest rate of RMB assets provides a good hedging ability for the RMB assets held by China's trade and investment partners. Against the backdrop of global high inflation, RMB bonds have good portfolio diversification value.