Yi Xianrong'S Interpretation Of The Huge Impact Of Financial Markets

Premier Li Keqiang said at the two sessions press conference that China allowed case financial risks to happen, but there would be no systemic or regional risks, because China's economy is still in a reasonable range, with a higher savings rate and higher capital adequacy ratio.

It allows individual financial risks to be liquidated according to the principle of marketization. This is to prevent moral hazard and enhance people's risk awareness.

It can be said that Premier Li Keqiang's statement, that is, to break the rigid payment of financial market, will bring great impact and impact on China's financial market in the future.

It will change the concept and behavior of investors in China's financial market, and will also change the business philosophy and methods of domestic financial institutions, risk pricing tools and profit models.

Generally speaking, any financial paction is the pricing of credit risk, but different financial market trading behavior has different ways and means of credit risk pricing.

In a mature market economy, the credit of market players will be obtained through repeated market games and long-term performances, and there is a set of effective legal and judicial systems to guarantee it.

However, for China's financial market, because it is pformed from the planned economy, its credit can not be obtained from the repeated game of the market main body paction process, nor is it formed by the long-term evolution of the market. It basically comes from the government, from the government's implicit guarantee for the financial market.

Because the credit of China's financial market is government.

On the one hand, the government controls various financial markets. On the other hand, it also determines that the main body of the financial market, whether investors or financial institutions, will return its financial market operation to its own cost and pfer the cost of its financial market operation to the whole society.

In this case, on the one hand, the interests of financial market pactions are often related to the power of the government. On the other hand, the main body of the financial market is more inclined to high-risk markets and projects.

Because the higher the risk of financial market, the greater the profit opportunities of the market players, the higher the risks they face, but these risks may be pferred to the whole society.

This is the reason why the speculation in China's financial markets prevailed earlier.

China allows case financial risks to happen, which means that the government will gradually withdraw from the implicit guarantee for domestic financial market credit.

This means that not only domestic financial institutions are allowed to go bankrupt, but also domestic financial institutions and investors are responsible for their trading activities.

That is to say, domestic

Under the present laws and regulations, any financial market product, financial paction tool, or any financial paction can be created to be responsible for its own behavior.

These financial pactions make money, and the proceeds can go to these financial institutions. If they lose money, they have to take responsibility for themselves.

The actor is conceited and won the deficit.

The same is true for investors.

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Don't make money as you used to be. If you lose money, look for a country.

For example, China's characteristic "housing trouble" is such.

Bought a house to earn money is their own, and bought a house loss to the sales office to make trouble.

Because the government does not undertake implicit guarantee for financial market behavior, the financial institutions in the future market will have to improve their credit risk pricing ability, because if the ability is not high, the losses caused by them must be borne by themselves.

For example, if banks lend money, they have to have a clear understanding of the credit status of enterprises, repayment ability in the future and the trend of enterprises in the industry. This will reduce the possibility of non-performing loans.

To face fierce market competition, we must change the way of business, otherwise it will be easily eliminated by the market.

Also, for domestic residents, if they want to invest, the higher the rate of return is, the better the income will be.

Only by taking account of the profits and risks of the investment projects of these financial institutions can we reduce the risk of investment.

For example, with the full liberalization of deposit rates, which banks do residents deposit into, it is not that the higher the deposit interest rate is, the better the bank credit and quality should be.

If the credit of the bank is not good, the deposit of the residents into these banks will be faced with the risk of bank bankruptcy.