It Is Imperative To Improve The Framework Of Financial Supervision.

The CPC Central Committee adopted in the fifth Plenary Session of the 18th CPC Central Committee the recommendations of the CPC Central Committee on formulating the thirteenth five year plan for national economic and social development (hereinafter referred to as the "proposal") clearly pointed out that innovation is the first driving force for development, and we must adhere to the development of innovation and build a new system of development.

We should thoroughly study and understand, conscientiously implement and strive to improve the market system that plays a decisive role in the allocation of resources and play a better role in the government. We will form an institutional mechanism conducive to innovation and development, accelerate the pformation of the mode of economic development, and achieve a higher quality, more efficiency, more equitable and more sustainable development.

It is pointed out in the article that building a new system of development is a comprehensive deepening.

The important content of the overall goal is to fully mobilize the enthusiasm, initiative and creativity of all aspects, and let all the vitality of labor, knowledge, technology, management and capital compete to burst forth, so that all sources of social wealth can be fully inflow, so that the fruits of development can be more equitable and benefit to all the people.

In terms of financial reform, Yang Jing stressed that finance is the core of the modern economy, and it is very important to take this move.

We should strengthen coordination and coordination, reform and improve the financial regulatory framework to adapt to the development of modern financial markets, improve the regulatory rules in line with China's national conditions and international standards, and strengthen the supervision of systemically important financial institutions.

Full coverage of regulation.

In addition, we should improve the management system of state-owned financial capital and foreign exchange reserves, establish a safe and efficient financial infrastructure, effectively use and develop financial risk management tools, and guard against the bottom line of systematic regional risks.

Yang Jing said that the key tasks of comprehensively implementing the new system of development include six major aspects, namely, to further pform the functions of the government, to play a good role in the two hands of the government and the market; to adhere to the public ownership as the main body, and to develop jointly the diversified ownership economy; to deepen the reform of state-owned enterprises, to strengthen and expand the state-owned enterprises; to deepen the reform of fiscal and taxation systems, to establish and improve the modern financial system; to accelerate the reform of the financial system, to improve the efficiency of financial services, to improve the income distribution system and to form a rational and orderly pattern of income distribution.

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Wu Xiaoling, vice chairman of the Standing Committee of the National People's Congress and vice chairman of the finance and Economics Commission, said at the annual meeting of Finance and economics that the stock market movement reflects the contradiction between the excessive anticipation of the market and the short-term economic performance, and also reflects the defects of the capital market's basic system and regulatory system. In the future, we need to strengthen the system construction, prevent and defuse financial risks, and speed up the revision of the Securities Law on the basis of summing up the experience and lessons of the stock market fluctuations.

Wu Xiaoling thinks that the abnormal fluctuation of stock market reflects the defects of the basic system of capital market and the defects of the regulatory system.

It is mainly reflected in five aspects: first, the pition, disorder and imperfect supervision of leverage pactions, amplifying the defects of capital type; second, the uneven mechanism of air and space, losing the ability of self balancing of the market, resulting in a unilateral uptrend and a sharp fall; third, the lack of effective fusing mechanism in the stock market; fourth, the defects of the new stock issuing system, resulting in the great new capital's endless enjoyment, and the new system of issuing new shares that has frozen funds has a short-term impact on the stock market pactions; fifth, the structure of Chinese investors is irrational, and the tendency of retail ownership is serious, and the trend of catching up and selling is down.

Wu Xiaoling said that in the future, we need to further strengthen institutional building to prevent and defuse financial risks.

First of all, we should speed up the revision of the securities law and lay a legal foundation for the development of capital market.

Wu Xiaoling emphasized that the capital market is a direct financing oriented market. It is necessary to introduce the implementation of registration system, improve the responsibility of the relevant parties in stock issuance, clarify the responsibilities of listed companies, law firms and accounting firms, decide on the requirements of information disclosure and distinguish between different levels of market according to the number of investors and the appropriateness of investors. Second, we must build a multi-level capital market in China; third, strengthen investor protection.

We should further protect investors from strictly disclosing information, standardizing the behavior of listed companies, emphasizing cash dividends and improving the channels for investors' legal relief.