On Jan. 16th, PBCSF Global Finance Forum hosts “Technology Innovation Leading the Future” Strait-City Summit in Xiamen. Renowned guests from the industry carried out the round table discussion on 3 issues: ‘New Normal, New Finance’, ‘Internet Innovation and Supervision’ and ‘Technology and Finance’. Most guests presented, agreed that, basing on the analysis of the new normal in China’s economic development, reformation time window should be seized and be used to achieve the reformation goals.
PBCSF Associate Dean Zhao Cen made the opening speech. In the discussion of ‘New Normal, New Finance', Li Jian’ge, co-head of Tsinghua University National Institute of Financial Research, pointed out that the ‘new finance’ means financial innovation. As a matter of fact, we have made great progress in financial innovation. Li also pointed out that, financial innovation is taking place in form of trading methods and financial product. Due to innovation and internet, a lot of trading has moved from off-line to on-line, which promotes the efficiency, lowers the costs, and promotes trading accuracy, safety and inclusion.
Wei Yingning, member of the PBCSF Academic Advisory Committee and former Vice Chairman of CIRC, talked about the current insurance development in China in his speech titled “Insurance Development and Internet Strategy”. He believes that there are four fundamental principles on China’s internet insurance supervisions that the quality of service should be guaranteed, safety of fund should be ensured, insurance corporate bodies should be unified for operation, and a third party-platform must obtain license before operation. O2O and big data analysis and application, he predicted, will be the main mode of future internet insurance development in China, and the internet insurances will connect more closely with the daily life.
During the discussion, Peng Wensheng, global chief economist and the director of research department at CITIC Securities, analyzed the global macro-economic trend. Through analyzing the falling of global stock price, large commodity price, the rise of risk premium and currency depreciation in the emerging markets, Peng thinks that the phenomenon is indicating the tightening of financing conditions which would affect the entities.
Sun Yuqi, associate director of financial research department at People’s Bank of China, pointed that, the development curve of further China’s economic development will be in ‘L’ shape. The development rate will keep at 5% after 2021, while the development rate will be at no less than 2% after the year 2035. Basing on the analysis of macro-economics, she thinks the side reform of structure of supply and demand should seize the reform time window. There are 5 missions in current side reform in supply and demand structure: reduce productivity, reduce inventory, reduce leverage, make up the short board, and reduce cost.
Zhang Xiaoling, Deputy CEO of China Asset Management Company, also emphasized on the importance of de-leveraging and risk prevention, which he thinks is the core mission of China’s development. He pointed out that China’s debt structure is characterized as corporate debt being extremely heavy. To change the current situation, great efforts should be made to seize the window period of reform and carry out the de-leveraging and restructuring measures in China. He also said that the time when bad debt starts to be stripped out and capital to be replenished is the turning point for the adjustment of China’s economy.
Liao Li, Executive Associate Dean at PBCSF, pointed out that, through analyzing American P2P company LendingClub’s development from promissory note and banking to stocks, it is clear that the USA is taking P2P into its supervision under its current monitoring model. Thus lessons can be learned in 4 aspects: 1) the entry requirements of the protection of capital and security system; 2) full and timely information disclosure concerning the team, finance, dividend, transaction and violation; 3) the supervision and control of funds; 4) the requirements of borrower and investor.
Other gusets including Hu Tao, president of Zhima Credit, Zhang Jun, CEO of ppdai.com, and Luo Chuan, CEO of daokoudai.com, also spoke at the Summit.
PBCSF Global Finance Forum, in search of the directions of China economic reform and development, mainly focuses on issues on three levels, World and China, Reform and Policy, and academic and practice. The Strait-City Summit is the first Summit in Xiamen, hosted by Tsinghua University PBC School of Finance, co-hosted by Daoyuan Capital Management (Beijing) Co. Ltd., and supported by Xiamen Municipal Commission of development and Reform and local enterprises.
