How Should The Soil Of Financial Risks Be Thoroughly Consolidated?

Regulators recently mentioned the regional systemic risks of finance. Many behavioral logic can be explained from the perspective of preventing systemic risk.

In October, with the return of capital allocation, leverage and interest rates were higher and demons were emerging one after another. In the A share market, gambling was not changed. Such a market is indeed prone to systemic financial risks.

No matter what the name is for financial innovation, the essence of finance is to control risks and allocate accurate funds.

Financial innovation must be carried out, but it can not be divorced from the bottom line of risk prevention.

On October 22nd, when Premier Li Keqiang met with former US Treasury Secretary Paulson, he said that in the middle of this year, the Chinese government adopted measures to stabilize the stock market to prevent possible systemic financial risks.

16 days ago, at the forum of financial enterprises, Li Keqiang stressed that the bottom line of regional systemic financial risks should be firmly maintained.

Mention of systemic risk also includes central bank officials and market institutions.

In October 14th, Lu Lei, director of the Research Bureau of the people's Bank of China, published the article entitled "building a financial power in the course of reform and opening up" in the people's daily.

At the end of the article, we should set up a modern financial supervision system and strictly observe the bottom line of systematic and regional financial risks.

The A share strategy weekly released by Orient Securities, as the reason for promising the market, pointed out that under the background of policy easing, systemic risk was covered by the market, and the rebound in the market before it is expected to boost investor confidence.

Of course, no one will forget President Xi Jinping's interview with us before the visit to the United States. He pointed out that the government's intervention in the market to stabilize the selling tide is a necessary action to prevent systemic risks. Even in some mature overseas markets, the local government has a similar stabilizing action.

Looking back further, financial expert Wang Qishan often referred to the bottom line theory as early as the second half of 2008 to 2009. "China must first do its own things well" and firmly defend the bottom line of systemic and regional financial risks. This is the premise for accelerating the pformation of the financial industry development mode, adjusting the financial structure, deepening reform and opening wider to the outside world.

The frequency of systemic risk mentioned is almost the same as that of financial innovation and RMB internationalization.

China attaches great importance to systematic and regional financial risks because of the existence of soil that breeds financial risks in China.

For example, at present, the number of electronic trading platforms is large. According to the incomplete statistics of China Commodity and circulation Federation, by the end of 2014, there were 739 domestic commodity trading markets, of which 661 were in operation.

The number of stock exchanges and stock exchanges is even more alarming.

Starting from the Tianjin literary exchange, some pactions were challenged by professionals and investors.

These exchanges are financing to a certain extent, once funds break down.

It is hard to avoid.

The regulatory power of various commodity exchanges supported by local governments or in the name of innovation is still very weak.

Many investors are lacking in common sense and easy to believe in falling things.

before

The high rate of return on investment at a high rate of more than 10% is impressive, and investors still believe that high earnings can be easily obtained.

Take the stock market turbulence in June this year as an example. Many people who do not support the stability of the market do not think that it will constitute a major crisis. In fact, it contains systematic financial risks.

Is it systematic?

It depends on the spread of risk toxin.

The subprime mortgage crisis in the United States is not only the crisis of derivatives Department of mortgage companies, insurance companies, and large financial institutions, but also spread to the crisis of all large financial institutions and the bankruptcy crisis of all participants, and spread from the United States to Europe and even East Asia.

The domestic stock market turmoil in June was like a storm.

After June 15th, the leading gem index dropped from 4038 to 1779 in 3 months, or 56%.

The Shanghai Composite Index dropped from 5178.19 in June 12th, down to 2850.71 points in August 26th, or 45%.

The main reasons are leverage and short selling. Deleveraging affects investors, institutions and trusts, which ultimately affect banks.

The stock market turmoil is highly contagious to the financial markets, causing the market to panic.