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Part 1: Model Measures for Financial Services to the Real Economy
key word: financial service Trade liberalization; Financial regulation; economic policy
CLC No.: F83
Document ID: A
Article No.: 16723198 (2014) 02012201
Financial regulation under the liberalization of trade in financial services
In the context of the liberalization of trade in financial services, financial markets and financial risks have taken on new characteristics. Financial control measures are formulated to ensure the stability of the financial system and safeguard the interests of consumers. Financial regulation has its necessity and importance. For developing countries, taking financial regulation measures can better protect their financial security and promote national Economic development.
1.1 Take healthy financial development as the foundation of market development
The premise of financial market opening is to ensure the healthy development of the financial industry. We should make it clear that opening the financial market is to better introduce advanced management experience and technology and improve our market mechanism. The blind opening of the financial market will only affect the stability of the domestic financial system and hinder the development of the domestic economy. Some western economists believe that the improvement of domestic financial efficiency is the result of the opening of the financial system, although this theory has been confirmed to some extent. But in fact, if a country's financial industry is relatively weak, it may not be able to cope with the huge pressure after the opening of the financial system, leading to domestic economic turbulence and consumer interests damaged. Therefore, the development of the financial market must be strategic and gradual.
1.2 Establish a market constraint oriented financial management model
In the context of the liberalization of trade in financial services, the traditional financial regulation model must be reformed to better meet the needs of modern social development. The realization of the market-oriented financial management model is an innovation of the financial regulation model. It requires the realization of the market-oriented development of the price mechanism of financial products, the allocation of financial resources, and the economy of financial institutions, and the construction of a more fair, just, rational, and open financial market mechanism. Publicity refers to the transparency of financial market information, which is the premise of fair competition. Justice means putting an end to insider trading. Fairness means treating domestic and foreign financial service providers fairly.
1.3 Make full use of agreements related to financial services
This mainly refers to the application of the prudential exception clause in the Financial Services Agreement. The international financial system is relatively complex, and the Financial Services Agreement cannot cover all aspects. Therefore, its appendix stipulates that members can take appropriate measures for prudential reasons measures 。 However, in the appendix of the Financial Services Agreement, there is no specific regulation on prudential measures. The implementation of prudential financial control measures has a strong purpose and autonomy, that is, if there are sufficient reasons, you can not accept the constraints of the World Trade Organization. Due to the different social and economic development conditions of each country, the prudential measures of each country will be different. That is to say, the same event is prudent for one country, but it may become a tool of trade protection for another country. In order to better promote the development of the world economy, safeguard the interests of developing countries, promote the fairness of world trade, the World Trade Organization gives developing countries certain special rights. The particularity of this right is mainly reflected in flexibility. As a developing country, China should make full use of prudential provisions to ensure the stability of its financial system to the maximum extent.
1.4 Strengthen financial supervision cooperation of all departments
The liberalization of trade in financial services often brings certain threats and risks to the financial security of a country, such as the capital flow risks brought about by the liberalization of international delivery. These risks may have a certain impact on the domestic economy, and seriously may threaten the national economic security. The liberalization of trade in financial services requires that capital must be liberalized in international circulation. Many financial crisis events have proved that a fragile financial system coupled with international capital circulation is likely to lead to financial crises. Therefore, necessary financial control measures must be taken to improve the stability of the financial system.
To strengthen international cooperation in financial supervision, it is necessary to establish a unified financial supervision standard while fully considering the economic and social development level and national development level of different countries. Countries should strengthen the control of the flow of joint capital, and the control of working capital is the focus of international financial regulatory cooperation. Strengthening the information exchange between the central banks of various countries can effectively improve the ability of the entire financial system to respond to the financial crisis. On the basis of establishing bilateral cooperative relations, we should establish a regional cooperative economic system, strengthen cooperation with neighboring countries, achieve stable development of regional economy, and ensure financial security in the region. In addition, the establishment of the International Financial Coordination Organization has improved the ability to prevent the global financial crisis. For example, the establishment of international institutions such as the International Monetary Organization and the International Bank has effectively strengthened the cooperation of countries around the world and improved the flexibility and initiative of international assistance.
2 Conclusion
With the continuous development of economic globalization, developing countries are often in a weak position. In the context of trade in financial services, the necessary financial control measures are to ensure the legitimate interests of developing countries. The financial system of developing countries is relatively more fragile. If there is no corresponding control measures, there may be a risk of chaos in the financial system. Therefore, there is no contradiction between the necessary financial control measures and the liberalization of trade in financial services. On the contrary, the necessary financial control measures can not only ensure the security of the national financial system, It is also important to ensure the stability of the global financial system.
reference
[1] Zeng Letian. Analysis on the Current Situation and Economic Effects of China's Financial Service Trade Liberalization [D]. Zhejiang University of Technology, 2010
[2] Wang Yongling. Liberalization of financial service trade and the development of China's financial industry [D]. Yunnan University of Finance and Economics, 2008
Part 2: Model Measures for Financial Services to the Real Economy
[Key words] Liberalization of financial services; Financial stability; Financial efficiency
[CLC No.] f830.2 [Document Identification Code] a [Article No.] 1004-518x (2010) 08-0081-06
Wang Liwen (1966 -), male, PhD candidate, School of Economics and Finance, Xi'an Jiaotong University, majoring in market and circulation. (Xi'an, Shaanxi 710061)
1、 Literature review and research progress
The competitiveness of the financial industry has two meanings: first, it is reflected in the satisfaction of social demand for financial products and services provided by banks and other financial institutions, the speed of capital clearing, and the growth rate of profitability and capital profitability of financial institutions. Macroscopically, it refers to the efficiency of savings investment transformation and the efficiency of financial resource allocation in the financial system. Second, the ability of a country's financial system to prevent financial risks and even resist national economic risks. Only a financial system that meets both conditions can show that the financial industry has strong competitiveness.
The existing theoretical research and empirical analysis have shown that the liberalization of financial services has a positive effect on promoting market competition and improving market efficiency. For the host country, the entry of foreign banks directly increases the number of financial service providers participating in market competition, and increases the scale of financial service products that can meet the needs of diversified markets, thus changing the market structure to a more fully competitive direction, and maximizing the benefits of market competition to improve the efficiency of resource allocation.
Lensink&hermes [1] believes that for the banking industry in developed countries, the competitive effect of foreign banks' entry is greater than the technology spillover effect, which directly leads to the lower interest margin in the domestic banking market, and the declining profits and costs, which is a direct reflection of the enhanced market competition. Classens [2] and others conducted an empirical analysis on the relationship between the opening up of financial services and the efficiency of their respective financial industries in eight emerging market countries (regions) in Asia. The results show that the interest margin and operating costs are negatively correlated with the share of foreign banks, while the profit level is positively correlated with the degree of entry of foreign banks. This shows that although the competitive effect of foreign banks' entry forces domestic banks to reduce their operating costs, domestic banks have expanded their business space through other intermediary businesses and innovative businesses at the same time as the interest margin has decreased, so they can still improve their profitability under the condition of narrowing the net interest margin. The positive impact of financial service liberalization on improving the efficiency of the financial industry in the host country is obvious, although the impact may be slow and long-term. In Argentina, the ratio of operating costs to assets in the banking industry decreased from 1.3% in 1990 to 0.5% in 1997, while the proportion of foreign banks in total assets increased from 15% to 22% [3] [4]. Peng Runzhong, a domestic scholar, believes that the main ways for foreign banks to improve the efficiency of the banking industry in the host country are: competition effect; Technology transfer effect; Human capital cultivation effect; Perfect effect of financial system. [5]
The liberalization of financial services is of great significance for improving the efficiency of macro finance. In the process of financial service liberalization, due to the gradual reduction of restrictions on the entry of financial institutions, especially the reduction of barriers against foreign financial service providers, the competition in the financial service market has gradually intensified. At the same time, the stability of the financial system has been affected, forcing the regulatory authorities to strengthen prudential supervision and regulation to prevent financial risks and financial instability that may result from liberalization. Liberalization may lead to financial instability, but if it abandons the liberalization of financial services or hinders the process of liberalization, protectionism will bring serious consequences that will damage financial efficiency. Practice has proved that in the process of financial service liberalization, it is entirely possible to improve the ability to withstand risks and increase the degree of openness at the same time. For example, in the process of promoting regional financial service integration, the EU and the United States have simultaneously achieved the goals of financial service liberalization and building a sound financial system. However, some Southeast Asian countries failed to build a sound financial system and prevent and resolve financial risks in the process of financial service liberalization, which became the fuse of financial crisis.
2、 Financial Industry Competitiveness under Financial Service Liberalization: International Comparison and Empirical Research
（1） The correlation between the openness of financial services trade and a country's economic aggregate and its growth rate
The opening and internationalization of the financial services sector is an important part of a country's economic internationalization. It is often closely related to the structural reform of the domestic financial sector, so it is of great significance to macroeconomic stability. It can be seen that at present, the developed countries are more developed than
We take the banking industry as an example to examine the basic situation of the efficiency and robustness of the financial industry in different regions. All data are from the Bank for International Settlements. Asset profitability is an economic indicator reflecting the efficiency of the financial industry. The proportion of non liquidated loans and the proportion of weighted risk capital reflect the safety and soundness of the operation of financial institutions such as banks. Table 1 reflects the following characteristics and trends.
First, in Europe and other regions, the profitability of banking assets is high, while the proportion of unliquidated loans is low, and the proportion of risk weighted capital is also high. These regions are relatively developed in financial service trade, with a high degree of openness in financial services. For example, in the EU with a high degree of integration, the policy barriers faced by member states in areas such as the provision of financial services and investment in cross-border financial institutions have basically been eliminated, so the global trade in financial services in these regions is large and intensive. Collection.
Second, Eastern European countries have a high degree of openness in financial services, especially in Hungary, the Czech Republic and other countries. The share of foreign banks in the financial market has reached more than 70%. These countries have the highest degree of openness in banking services among transition countries. Therefore, the operating efficiency of the banking industry in these countries is improving rapidly. The asset profitability has increased from 0.9% in 2002 to 1.5% in 2004. At the same time, the proportion of unliquidated loans has also decreased to a certain extent, and the proportion of risk weighted capital is also high.
Third, in Latin American countries with a high degree of financial liberalization, the rate of return of the banking industry has gone out of the trough formed in the 1990s, the profitability has improved significantly, the proportion of unliquidated loans has decreased significantly, and the proportion of risk weighted capital is also high. The transformation and restructuring of domestic financial institutions by foreign financial institutions have improved the overall operating efficiency of the banking industry in the region. According to the statistics of Thomson financial, during 1998-2003, the scale of cross-border mergers and acquisitions of financial departments in Latin America reached $41 billion, far higher than that of Asian countries, with an average annual growth rate of more than 40 times ①.
Fourth, for East Asian countries, adopting different degrees of restricted financial service opening policies is their established financial market opening strategy. Before 1997, foreign financial institutions had a relatively low degree of control over the financial market. But after the mid-1990s, especially after the East Asian financial crisis, Asian emerging market economies opened their markets to foreign banks to a greater extent. With the moderate relaxation of capital account control, financial institutions represented by foreign banks experienced rapid growth in FDI in East Asia and Southeast Asia, Fdi in the financial sector increased significantly. Although there is no accurate statistical data on foreign financial institutions' FDI, according to Thomson fi financial's statistics on cross-border mergers and acquisitions in financial sectors, the scale of cross-border mergers and acquisitions in Asian financial sectors reached US $23 billion in 1998-2003. At the same time, international bank loans tend to be localized. If the proportion of local currency claims in foreign claims of international banks is used to measure the localization of international bank loans in capital inflow countries, the localization of international bank loans in most East Asian countries has exceeded 60%. Therefore, the scale and degree of trade liberalization in financial services in Asian countries have reached unprecedented levels.
3、 Financial Efficiency, Financial Stability and Financial Regulation under the Condition of Financial Service Liberalization
（1） The Relationship between Financial Efficiency, Financial Stability and Financial Regulation
1. Financial efficiency and financial stability are both unified and contradictory
A competitive but not robust financial market is unsustainable. The lack of stability will not only lead to the disintegration of the financial system sooner or later, but also lead to economic turbulence. A stable but non competitive financial market will lead to the loss of efficiency in the financial system and the economic field. Because the financial system is the center that directs social resources to efficient economic sectors, an inefficient financial system will reduce its capital distribution function and reduce the mobilization of savings, thus reducing the potential for economic growth and social welfare. Theoretically, in the long run, financial stability and financial efficiency are not contradictory. A stable financial ecological environment is the basic guarantee for improving financial efficiency, because the stable financial environment enables the costs and benefits of micro entities to be accurately analyzed and predicted, and each transaction subject can accurately assess the transaction risks and benefits. At the same time, the long-term stable financial ecological environment itself is a manifestation of higher financial efficiency. Without higher financial efficiency, the long-term stability of the financial industry cannot be guaranteed [7]. Under the condition of financial openness, how to coordinate the efficiency and stability of the financial system is an important issue faced by regulators.
2. Prudential supervision and regulation are of great significance to maintain the efficient and stable operation of the financial system
(1) The particularity of financial sector's competitiveness and soundness
The financial sector is different from other productive industries and competitive sectors. To achieve the goal of improving the micro efficiency of the financial sector and the efficiency of savings investment transformation and financial resource allocation, it must maintain a certain degree of competitiveness of the financial sector; To maintain stability, it is necessary to regulate the micro behavior and business activities of financial institutions, standardize the competition order, and resolve and prevent possible financial risks while improving financial efficiency.
(2) Prudent financial regulation and supervision must be required to maintain the internal coordination between competitiveness and robustness of the financial system
The internal risks of the modern financial system mainly include: the financial system has the characteristics of internal vulnerability, the vulnerability of financial institutions, the limited rationality of financial subject behavior, and the internal volatility of financial asset prices. Based on the inherent instability of the financial system and the existence of financial risks, it is very necessary to strengthen financial regulation and supervision. The supervision of the modern financial system by regulators should not only achieve the goal of enhancing the stability of the financial system, but also aim to ultimately promote the efficiency of the financial system. Since the 1980s, the regulatory principles of financial regulators in developed countries have basically changed from emphasizing security to emphasizing the equal importance of financial security and financial efficiency. Countries have changed the regulatory goal of focusing solely on security in the past, and have taken ensuring the safety and vitality of the financial system and the fairness and efficiency of the financial market as the primary task. For example, the United Kingdom put forward six principles of "good supervision" in the Financial Services and Market Law. The Financial Services Modernization Act adopted by the United States in November 1999 clearly indicates that "the United States has begun to take international competition and win the global market as its goal". Therefore, China's banking regulatory legal system should also fully reflect the new concept of efficiency and competitiveness, combine risk prevention with promoting financial development, and improve the international competitiveness of China's banking industry.
（2） Financial regulation framework under the trend of financial service liberalization
1. The entry of foreign financial institutions will intensify competition, and financial integrity may be threatened
Foreign financial institutions may take unfair competition methods after entering, which will damage the competition order. At the same time, the capital flow caused by liberalization needs to monitor its scale and structure to keep in line with the development of economic aggregate. Therefore, it is particularly important to establish a risk early warning system.
The liberalization of trade in financial services plays a positive role in promoting economic growth, improving efficiency and promoting financial stability, but its necessary conditions are macroeconomic stability and sound financial supervision and regulation systems. As an important part of financial liberalization, trade in financial services may also cause financial turbulence under certain conditions. According to the theoretical analysis of financial liberalization and the change of franchise value, under the condition of financial liberalization, no matter whether the bank initially made prudent investment, when the degree of competition of the bank increased and the deposit interest rate rose rapidly, thus reducing the franchise value of the banking sector, once the interest rate rose above the critical value, The risk premium that banks expect to obtain from successful speculation will exceed the franchise value in the case of failed speculation, thus stimulating the speculation of banks engaged in prudent investment; The banks that originally speculated will try to reduce the holding of free capital to increase expected profits. At the same time, the insufficient self owned funds of the banking sector will generate incentives for them to engage in high-risk investment, because for enterprises, even if the investment fails, the owners will only bear the losses of their own capital, and most of the losses are borne by creditors. If successful, the opposite is true.
2. The strict market access restricting the entry of foreign institutions will be replaced by prudent regulation
The relationship between the liberalization of trade in financial services and financial prudential supervision has become an important part of the wto multilateral trade legal system. The World Trade Organization may apply the principle of "prudent exception" to member countries whose liberalization policies may be inconsistent or contradictory with their domestic policies in the process of promoting the liberalization of trade in financial services, which is clearly reflected in the financial annex of the World Trade Organization. That is, regardless of any other provision of this Agreement, a Member shall not be prevented from taking measures for prudential reasons, including measures taken to protect investors, depositors, policyholders or persons to whom financial service providers have fiduciary obligations, or measures taken to ensure the unity and stability of the financial system. However, the prudential exception requires that when the prudential measures taken by a member are inconsistent with its obligations or financial commitments, the prudential measures shall not become an interface for it to evade its obligations and commitments. Moreover, wto applies this rule through the dispute settlement mechanism.
The policies of the financial industry are mainly divided into four categories: macroeconomic policies, prudential regulation, non prudential regulation beyond the trade restriction goal of pursuing market access or national treatment, and trade restrictions on market access or national treatment.
Among macroeconomic policies, monetary policy and balance of payments policy have a greater impact on trade in financial services. The formulation and implementation of these measures will have an impact on the overall financial market and the breadth and depth of financial services. It is a prudent measure to ensure the stability and unity of the financial system.
International payment policies have an important impact on maintaining financial stability. In most cases, the measures taken by a country to restrict short-term capital flows in order to maintain financial stability and prevent financial crisis are not within the scope of gats adjustment. The reasons why the host country restricts the international payment are: first, when the balance of payments is unbalanced or there is a payment crisis, the host country can limit the specific commitments it has undertaken according to the provisions of gats; Second, if the restrictions on international payments are intended to maintain the stability of the financial system, these measures constitute prudent measures.
Trade restrictions on market access or national treatment are of great significance to prudential regulation, which mainly include trade restrictions on market access of commercial existence (such as restrictions on its legal entity form and restrictions on the proportion of shares of foreign financial institutions in financial institutions of the host country), restrictions on the number of permits (including indicators and economic needs testing) Restrictions on the number of operating institutions of financial institutions and on the trading volume or assets of financial institutions. As far as the market access restrictions for businesses are concerned, although they may be for the need of protecting the domestic financial industry, they may also be for regulatory considerations, so they can also be converted into prudential measures. Because the supervision of businesses requires sharing regulatory information with the home country regulatory authorities, it is difficult to supervise them. The restrictions on the number of licenses, the number of business institutions and the amount of assets do not constitute prudential measures in a large sense.
National treatment may constitute prudent measures, especially when the host country is in crisis and rescues financial institutions.
3. Institutional framework for coordinated development between the financial market that maintains effective competition in the host country and the sound financial system
The establishment of an institutional framework compatible with the principle of giving consideration to both financial efficiency and financial stability under the conditions of the opening of the financial services market is an important goal of financial supervision, as well as the main goal of the healthy development of the financial services industry and the financial industry organization system. To achieve this goal, we must follow the basic rules and development of WTO
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Part 3: Model Measures for Financial Services to the Real Economy
Key words: wto financial service trade agreement financial liberalization securities supervision legal system
Its value orientation lies in freedom, efficiency, order and security. The legal value orientation and relevant provisions of wto agreements on trade in financial services will have an impact on the legal system of securities supervision.
The agreements on trade in financial services in the WTO system provide binding fundamental principles, rules and systems for the development of financial liberalization, build a multilateral negotiation mechanism and legal framework for the development of international trade in financial services, and open the prelude to the multilateralization of laws on trade in financial services. The liberalization of the securities industry, as an important part of financial liberalization, is one of the objectives to be achieved by the wto agreement on trade in financial services. The legal system of securities supervision may become an obstacle while safeguarding the liberalization of the securities industry advocated by the wto agreement on trade in financial services. there is an interactive relationship between the wto agreement on trade in financial services and the legal system of securities supervision.
1、 Wto agreement on trade in financial services and its value orientation
The wto legal framework for international trade in financial services includes the general agreement on trade in services (gats), the annex on financial services, the understanding on commitments in financial services, and the global agreement on trade in financial services.
GATS and the Financial Services Annex are the core parts of the WTO agreements on trade in financial services. The role of GATS is as stated in its purpose, "to establish a multilateral framework for trade in services, so as to expand free trade and promote economic development of all parties under the conditions of transparency and gradual liberalization". WWw.133229.COM The main principles and provisions of the legal framework of international trade in services are concentrated in gats, so gats constitute the first basic law on the multilateralization of international trade in services.
In view of the special important position of financial service industry in service trade, and the strict regulation of financial industry by all countries, these regulations constitute the main trade barriers for the development trend of financial industry liberalization. Wto members have reached the annex on financial services as a supplement to gats. The annex clarifies the scope of application of gats and stipulates prudential measures and their recognition, settlement of disputes over trade in financial services, and definition of financial services. The Second Annex to Financial Services is mainly about the exemption of MFN treatment clauses in financial services, and the provisions on the improvement, modification and cancellation of financial services in the specific commitments of members.
The Understanding on Financial Services Commitments defines the basis for some developed country members to draft their own financial services commitments, and proposes that Uruguay Round participants can undertake specific commitments on financial services under the Agreement in a way different from the third part of GATS, but not in conflict with the provisions of GATS, It must also ensure that the specific commitments reached are implemented on the most favoured nation basis.
Among the contents of the Agreement on Global Trade in Financial Services, what is of great significance is the Schedule of Specific Commitments and the Exemption List of Article 2 of each member on financial services. On the basis of the comprehensive principle of most favored nation treatment, more than 95% of global banking, securities and financial information trade will be included in the WTO's management and dispute settlement mechanism.
As a multilateral legal framework for the development of financial liberalization, the WTO agreements on trade in financial services enable countries to open their financial markets through market access, the principle of non discrimination, the principle of transparency and the specific commitments of each member party, so as to promote countries to gradually reduce government administrative intervention in trade in financial services, relax controls, and ensure that financial resources are allocated on the basis of the market, Realize the rational and optimal allocation of resources worldwide.
As a rule to adjust international service trade, the wto agreement on financial service trade is in essence a multilateral legal system to promote the development of financial liberalization, which has its specific value orientation. This paper argues that the legal value orientation of wto agreements on trade in financial services lies in freedom, efficiency, order and security. Freedom is the value orientation of the whole modern rule of law. The freedom promoted by the WTO agreement on trade in financial services focuses on economic freedom. Among the necessary factors to achieve economic freedom, economic system plays an important role. If an economic system cannot achieve certain economic freedom, it is an imperfect and defective system. Practice and theory have proved that economic freedom can only become reality under the market economy system, The market economy needs extensive economic freedom. Only on the basis of fully realizing the freedom of production, exchange, competition and income can the market economic system operate normally, so as to play a more effective role in resource allocation. On the other hand, only the market economic system can effectively prevent the damage to economic freedom caused by the excessive expansion of state power, Only in this way can we guarantee the promotion of freedom of competition, freedom of contract and freedom of operation through the implementation of effective legal rules, The essence of the liberalization of financial service trade advocated by the WTO agreement on financial service trade is to require a government to gradually reduce the government's administrative intervention in domestic and foreign financial service trade, relax control, take the market as the basis of resource allocation, realize the rational and optimal allocation of resources, and obtain the best economic benefits, This process is premised on the formation of a market economy in the world. It can be said that the greatest impact of WTO on all members is the establishment and improvement of their domestic market economic system. It can promote the liberalization of world financial service trade by ensuring the freedom of their domestic financial industry, The wto financial service trade has promoted the realization of trade freedom and competition freedom by establishing the principles of market access, non discrimination, transparency, etc.
Efficiency refers to the utilization of economic resources by economic organizations to obtain the maximum output with the given input. As far as the value of law is concerned, freedom and efficiency are homogeneous. As mentioned above, the function of freedom in the market is mainly to promote efficiency. Adequate economic freedom is a necessary means to improve the efficiency of resource allocation, Wto agreements on trade in financial services improve the efficiency of the financial industry by establishing the purpose of financial liberalization. The principles of market access, national treatment, most favored nation treatment, and transparency enable financial service trade providers of all countries to actively participate in the allocation of financial resources worldwide to improve efficiency. It can be seen that efficiency is also an important value orientation of WTO agreements on financial service trade.
However, The attention to freedom and efficiency in the WTO agreements on trade in financial services does not mean that there is no restraint. The high risk, instability and huge destructiveness of the financial industry have prompted the WTO to also pay attention to the order and security of the financial industry. It proposed that the domestic policy objectives of members should be respected, and recognized that members have the right to regulate the provision of relevant services in China and apply new laws, It stipulates the principle of "prudent exception" and clarifies the attitude of WTO towards the relationship between the efficiency brought about by the liberalization of the financial industry and the regulatory legal system to ensure the safety of the financial industry, that is, to ensure the efficiency brought about by the liberalization of the financial industry on the premise of ensuring the safe and stable order of the financial industry. The latter is the main line and the former is the auxiliary means. Therefore, security and order are also important legal values of wto agreements on trade in financial services.
2、 The influence of wto agreements on trade in financial services on the legal system of securities regulation
The relevant financial service agreements of the WTO have established the principles and legal framework for the liberalization of the securities industry, and have not made direct provisions on the legal system of securities supervision. However, as a multilateral trade rule affecting the operation of the global economy, the WTO, due to the special significance of the legal system of securities supervision on the liberalization of the securities industry, The value orientation and specific provisions of wto agreements on trade in financial services, which advocate financial liberalization, will have a profound impact on the regulatory legal system of various countries.
In the wave of financial liberalization promoted by the WTO, the securities regulatory legal systems of various countries are faced with the dual task of promoting the development of securities industry liberalization and ensuring the stability of the securities market. In order to deal with this dilemma, the spirit of freedom, efficiency, order and security must be permeated into the securities regulatory legal system under the guidance of the basic principles of the WTO on financial leisure trade, So that the domestic legal system of securities regulation can be improved and transformed under the guidance of the value objectives and principles of the wto on trade in financial services. The pursuit of freedom and efficiency of WTO requires the relaxation of strict administrative control, which provides an opportunity and impetus for the reform of domestic securities regulatory legal system. From this perspective, financial liberalization is in the development of economic transformation
The country is essentially divided into two levels. The first is to eliminate the domestic financial repression, that is, to achieve domestic financial liberalization. Domestic financial repression mainly refers to the direct administrative intervention of the government in the financial industry and the closed state of the domestic financial market. Domestic financial liberalization is to deregulate and open the trade in financial services; The second level is to open the domestic market to foreign financial industries. In order to guarantee the correct development direction of securities industry liberalization and prevent the spread of securities market risks, its members are objectively required to reform the domestic securities regulatory legal system. The main direction of the reform is to relax the administrative control and unnecessary intervention of the government, and take the market as the basis for the allocation of capital resources. So as to eliminate the domestic financial repression caused by excessive government intervention. The excessive government intervention in the securities market and the restriction of the market's role in the allocation of capital resources will inhibit the development of the securities market, resulting in low efficiency and poor competitiveness of the securities industry. The securities market, as a place for the allocation of capital resources, cannot play its role, and a large number of rent-seeking phenomena have arisen. The government participates too much in the specific operation and business of the securities market, ignoring the prevention and resolution of the risks in the securities market. Once integrated into the wave of financial liberalization, it is very easy to expose its shortcomings, be impacted, and induce financial risks. Therefore, in order to integrate into the development of financial liberalization, the domestic legal system of securities supervision must be changed in the direction of marketization and legalization, relax government administrative control, gradually open the capital account, let the market play a leading role, improve the legal system of securities supervision, and more use economic and legal means to supervise. In addition, the government should focus on preventing and resolving risks, at the same time, strengthen international cooperation in securities regulation, jointly prevent risks that threaten countries, strengthen the prevention of risks in the securities market and the fight against illegal securities acts, ensure the security and order of the securities market, and promote the healthy development of the liberalization of the securities industry.
Although the agreement on trade in financial services of the WTO does not directly stipulate the legal system of securities supervision in various countries, due to the close relationship between the legal system of securities supervision and the liberalization of the securities industry, the relevant provisions affecting the legal system of securities supervision are still made in the agreement on trade in financial services of the WTO. From the relevant provisions in gats and its annexes, we can see w'lo's attitude towards the relationship between the wave of financial liberalization guaranteed by multilateral agreements on financial services and the domestic legal system of securities regulation. The preamble of the gap clearly stipulates that "while properly respecting domestic policy objectives", bilateral negotiations should be promoted on the basis of mutual benefit to gradually achieve a higher level of liberalization of trade in services. In the preamble, by recognizing that members have the right to regulate the provision of relevant services within their territory and apply new laws, it ensures the autonomy of its members to apply laws based on the consideration of special domestic circumstances in order to achieve domestic policy objectives. As far as the securities industry is concerned, if members are implementing the provisions or commitments of gats on financial services trade, which makes their domestic securities industry face serious difficulties, Then have the right to take securities regulatory measures appropriate to the financial difficulties to prevent the risk of the securities market from continuing to expand. The provision positioned the process of service trade liberalization as "gradual". Instead of ignoring the reality of its members' domestic situation "one size fits all", so that countries, especially developing countries, have eliminated their anxiety in the face of wto agreements and expanded the scope of application of relevant wto agreements.
Article 2 of the gats financial services appendix stipulates that member states may take relevant measures for reasons of prudence, without considering whether they violate relevant commitments or obligations. As an appendix to financial services under gats, this provision provides a direct basis for the adoption of domestic securities regulation in various countries. In order to ensure the leading direction of financial liberalization, the adoption of prudential regulatory measures is also restricted. First, the adoption of relevant regulatory measures should ensure that, for the purpose of prudential regulation, whether it will actually cause damage to relevant commitments and obligations of gats, Not considered, but restricted from the purpose, which fully guaranteed the right and possibility of members to use the provisions of this article for "prudent reasons". It includes measures taken to protect investors, depositors, policyholders or financial service providers who have fiduciary obligations to them, or measures taken to ensure the unity and stability of the financial system and other prudential purposes. To determine whether a regulatory measure of a country is for prudential purposes, it should generally be judged according to the specific circumstances of the country, Otherwise, it is likely to lead to the consequences that members cannot use regulatory measures to maintain financial stability or hinder the development of financial liberalization. Secondly, the prudential measures taken by a member shall not be used as a means of evading its commitments or obligations under this Agreement, If the country concerned considers that the regulatory measures taken by the member party are not for reasons of prudence, it has the right to raise an objection and determine whether the regulatory measures are beyond the scope of prudence through the dispute settlement procedure.
In practice, many non discriminatory rules and regulatory systems constitute trade barriers, The WTO hopes that members will make an exception commitment to the regulatory measures that may constitute barriers to trade in services. The exception commitment is not an imposed obligation of the WTO. However, once members make an exception commitment through negotiations, they will incorporate the elimination of their own non discriminatory regulatory measures into their country's mandatory obligations under the WTO. The implementation of this commitment will be guaranteed by the WTO dispute settlement mechanism. In addition, the WTO proposes that all members should adopt a bilateral coordination mechanism to negotiate, reach agreements on mutual recognition of relevant certificates or qualifications, and allow other members to join such agreements through negotiations, thus providing the possibility for all members to coordinate with each other to gradually reduce regulatory barriers and promote the liberalization of the securities industry, At present, many countries have reached memorandums of understanding and assistance treaties on bilateral cooperation and supervision.] The WTO also advocates the establishment of recognition and coordination standards in the form of multilateral negotiations, and promotes these recognition and coordination standards through the establishment and participation of international organizations, ultimately establishing them as international securities regulatory practices or cultural rules, Regional and international securities regulatory cooperation organizations have been established one after another and have made many efforts for the coordination of securities regulation in various countries. They have formulated some recognized securities regulatory documents, and the international practice of securities regulation is in the process of being established.
3、 The Reaction of Securities Regulatory Legal System to Financial Liberalization
WTO regards the liberalization of trade in financial services as one of its important fields, and because of its role in promoting financial liberalization, it has established its basic position in the wave of financial liberalization. It can be said that after the 1990s, financial liberalization was mainly promoted by WTO, While wto agreements on trade in financial services affect the legal system of securities supervision, the legal system of securities supervision has a certain reaction to the financial liberalization advocated by wto, thus affecting the implementation of wto agreements on trade in financial services. Its adverse effects include positive and negative effects.
Theoretically, financial liberalization can improve the efficiency of the financial industry, reduce service costs, optimize the allocation of resources worldwide, and provide customers with a variety of services. However, the wave of financial liberalization has made international capital highly mobile and financial derivatives develop rapidly. The high flow of capital in the international market and the continuous production of financial derivatives are originally measures taken by the financial community to reduce risks. In fact, the rapid flow of a large number of international capital and financial derivatives have contributed to a series of financial crises, Financial liberalization has made financial risks spread and spread around the world, cross-border financial crimes are increasingly rampant, and the regulatory legal system is still limited to the territory of a country. Therefore, the wave of financial liberalization requires countries to change and improve their domestic regulatory legal systems, relax controls, and strengthen the coordination and cooperation of their regulatory legal systems, So as to ensure the steady development of financial liberalization and enable countries to share the benefits it brings. The advantage of financial liberalization depends on whether the wave of financial liberalization is based on a sound regulatory legal system. Without this foundation, the wave of liberalization will only lead to chaos and disorder. The liberalization of securities industry is an important part of financial liberalization advocated by wto. The high risk of the securities industry has become more prominent after the liberalization. With the integrated development of the securities market, the failure of the securities market caused by information asymmetry has exceeded the boundaries of a country and its own system and legal jurisdiction, spawned a large number of cross-border insider trading, manipulation and fraud, and increased the possibility coefficient of financial risks, The integration of the securities market will lead to the rapid spread of financial risks in the regional and international scope. The huge amount of hot money in the international capital market will transfer funds for the purpose of risk aversion or speculation, which will directly impact the domestic securities market, seriously damage the stability and prosperity of the securities markets in various countries, and quickly spread to the international scope, causing huge damage to the achievements of financial liberalization, Countries should improve their securities regulatory legal systems in order to minimize risks, and through the international coordination of their securities regulatory legal systems, increase joint supervision and combat illegal securities acts that threaten the international securities market, so as to avoid adverse factors in the process of securities industry liberalization. It can be said that the securities regulatory legal system of various countries
Part 4: Model Measures for Financial Services to the Real Economy
On December 11, 2001, after 15 years of arduous negotiations, China formally joined the WTO. In the hundreds of pages of protocol on China's accession to the WTO, trade in financial services has been heavily colored. Since then, the acceleration and timetable of China's financial opening have been set externally, and the era of all-round opening of China's financial industry has begun.
Opening up is China's basic national policy. For more than 20 years, it is precisely because of holding this banner high that China's economy has achieved considerable development and remarkable achievements. Based on the successful experience of the past 20 years, we have reason to expect that China's economy will gain greater benefits from this. Different from the overall economy, due to the relatively weak foundation, the domestic financial service industry will be under greater pressure of opening up, but it will also benefit a lot in the medium and long term. To sum up with Premier Zhu's words, (financial opening up) has both advantages and disadvantages. Do a good job and strive for more advantages than disadvantages. The so-called "doing a good job" should not be limited to simply responding to the impact mentioned above, but should transform the mechanism, update the system and comprehensively improve the competitive strength.
This chapter, based on the analysis of the rules of financial opening under the WTO framework, describes China's strategic plan to deal with financial opening, and then analyzes the challenges and countermeasures of the four aspects of China's financial opening - banking, securities, insurance, and capital account - item by item.
Section I Financial Opening Rules under the WTO Framework
The World Trade Organization (WTO), established on January 1, 1995, is an international organization dedicated to supervising world trade and liberalizing world trade. Its core is the WTO Agreement. Its basic functions are to implement the WTO Agreement, organize multilateral trade negotiations, solve possible trade disputes among member countries, and review the trade policies of each member. Its predecessor was the General Agreement on Tariffs and Trade (GATT) established in 1947.
For a long time, the main object of GATT was trade in goods. Until the Uruguay Round negotiations (September 1986 to December 15, 1993) went on for a period of time, the service trade parties entered the scope of GATT negotiations. In December 1993, eight years of Uruguay Round negotiations ended and the General Agreement for Trade of Service (GATs) and other important documents were concluded. GATs are the general rules regulating all international trade in services. They consist of the framework agreement, eight appendices and the country specific commitment form submitted by member countries. The text of GATs consists of six parts and twenty-nine articles. Including scope and definition, general obligations and disciplines, specific commitments, gradual liberalization, dispute settlement, etc., applicable to all service sectors. Among them, five clauses, including the most favored nation treatment (Article 2), transparency (Article 3), monopoly and exclusive service provision (Article 8), payment and transfer (Article 11), restrictions imposed to ensure the balance of payments (Article 12), and two financial services appendices, are more targeted to financial services trade and deserve our serious attention. Under the GATs framework, the understanding agreement on GATS financial service commitments reached in 1995 and the global agreement on financial service trade reached in 1997 made more specific provisions on the opening of financial services.
According to the definition of GATS financial services appendix, financial services refer to any finance provided by a service provider of a party (countries and regions participating in service trade negotiations). In GATS, the content of "financial services" is summarized into six categories, including credit, settlement, (securities, foreign exchange) trading, insurance, asset management, and financial consulting, totaling 16 items, which can be said to cover all for-profit businesses in the financial field.
1、 Five Basic Rules of WTO on Trade in Financial Services
（1） Market access
"Market access" is related to whether foreign service providers can effectively enter the markets of contracting countries. Article 16 of GATS stipulates specific rules for market access. First of all, when each Member State makes a commitment on market access in a specific service sector, the treatment it gives to the services and service providers of any other Member State shall not be less than the treatment given by the conditions and restrictions specified in the commitment table (paragraph 1 of Article 16). That is to say, the minimum standards for market access obligations determined by each member country in the commitment table represent the minimum limit for opening the market to other member countries, and in each subsequent round of negotiations, WTO members can only reduce restrictions in new commitments, rather than increase restrictions. Secondly, the departments making market access commitments must clearly list the following restrictions: (1) limit the number of service providers; (2) Limit the total amount of service transactions or assets; (3) Limit the total amount of service operation or service output; (4) Limit the total number of employees in specific service sectors; (5) Restrict the business form of service providers; (6) Limit the maximum share of foreign capital (Article 16, paragraph 2). If a member state promises to open a certain service sector, but does not explicitly list these restrictions under market access in the commitment table, it may not maintain or take measures of this nature in future practice. Such provisions make national laws and regulations transparent and predictable.
The understanding agreement also puts forward the status quo constraints on market access under the GATs framework, that is, any conditions and restrictions listed in the specific commitment table of each member country should be limited to its existing non-compliance measures (Section A), that is, the relevant member countries should not impose restrictions beyond the existing level on foreign financial services market access. This makes up for the shortage of GATs. The GATs framework agreement does not have the status quo constraint requirements, which is difficult to avoid random changes or even retrogression in the service trade market opening policies of some member countries.
（2） National treatment
National treatment is a traditional free trade principle, which requires non residents in a country to enjoy the same treatment as residents. That is, domestic laws should be applied equally to residents and non residents within the territorial jurisdiction of a country. GATS stipulates national treatment as the content of specific commitments, and each member country shall give national treatment to another member country according to the scope, conditions and restrictions specified in its specific commitment table. GATs further stipulates that if the same or different formal treatment changes the conditions of competition in favor of domestic services or service providers, such treatment shall be deemed to be detrimental to the same services or service providers in other Member States (Article 16.3). In other words, the standard of national treatment set by the GATT is de facto rather than de jure. This is because some domestic measures, even if seemingly non discriminatory, may in fact create unfair competition between domestic services or service providers and foreign services or service providers. Therefore, in the Uruguay Round of trade in services negotiations, OECD member countries put forward the concept of "equal opportunities for competition" for national treatment. GATs provisions on national treatment reflect this requirement to some extent. In the famous "Banana Case", the WTO panel and the Appellate Body made a brilliant explanation. The fundamental purpose of "national treatment" is to make the treatment enjoyed by foreign services and service providers no less competitive than that enjoyed by domestic same services and service providers.
The financial services understanding agreement also requires its signatory member states to fulfill two basic obligations of national treatment: (1) allow financial institutions in other member states located in their territory to use their payment and clearing systems operated by public institutions, and to obtain official funds and refinancing facilities that may be obtained in normal business activities. For example, foreign banks are allowed to obtain re loans or rediscount bills from the central bank of their country. (2) When foreign financial service providers enter the self regulatory institutions, securities or futures trading markets, clearing institutions and other associations and organizations within the territory of member states, the relevant member states shall grant national treatment to foreign financial service providers; When a Member State grants its own financial institutions direct or indirect financial service privileges, foreign financial institutions within its territory shall also enjoy such privileges.
Different from previous international agreements, GATs do not use the "nationality" of commercial existence as the basis for judging domestic and foreign service providers, but instead use "foreign investors" (mainly embodied in the meaning of "control") and "investment" (mainly embodied in the meaning of "ownership"). Accordingly, foreign-funded banks enjoying national treatment in a member country can be either subsidiaries and joint ventures with the nationality of the host country, or commercial entities such as branches and representative offices that do not have the nationality of the host country, as long as they meet the meaning of "financial service providers", especially those "owned" or "controlled" by natural or legal persons of another member country as stipulated in GATs Is enough.
（3） Most favored nation treatment
As two aspects of the principle of non discrimination, MFN treatment and national treatment complement each other and together form the basis of the multilateral trading system. National treatment is a comparison between foreign countries and domestic countries, which only involves the application of domestic measures; MFN treatment is a comparison between foreign countries, involving the application scope of domestic measures and customs measures of a country. GATs stipulates that: "Each Member State shall immediately and unconditionally provide services and service providers to any other Member State no less than that of that Member State
Treatment of the same services and service providers to any other country "(art. 2, para. 1). Here, the beneficiaries are services and service providers, and "any other country" should be understood to include non members of the agreement. In this way, MFN treatment actually involves three levels: (1) non discriminatory application of financial service specific commitments made in their respective country specific commitments or financial service specific commitments to all other member countries; (2) For areas where no specific commitment has been made, each Member State shall immediately and unconditionally grant all other Member States preferential treatment or exemption in respect of financial services it has granted to other Member States; (3) Each Member State shall apply to all other Member States non discriminatory preferential treatment and exemption granted to non Member States in respect of financial services. If a party has measures inconsistent with the above, it must give reasons and meet the conditions for exemption from obligations.
The application of MFN treatment in the field of financial services is also subject to a number of general permanent exceptions, mainly the exception of transactions in adjacent border areas, the exception of economic integration organizations (paragraph 2 of Article 2), the general exception, the security exception, and the exception of safeguarding the balance of payments; It is also subject to the reservation of MFN treatment made by member states. Due to the great disparity in the strength of financial services trade among countries, GATS also allows member countries to maintain measures inconsistent with MFN treatment within a certain period of time (in principle, it should not exceed 10 years) (Article 2.2).
（4） The principle of transparency
Transparency is more important for trade in services. The successful operation of foreign service providers in another country's market is based on a full understanding of the regulations and measures affecting service trade; This is also of great significance for fully preparing for future negotiations, as it will help to identify existing obstacles and thus promote gradual liberalization. Because of this, GATS stipulates that transparency is a universal obligation that member states must comply with. Article 2 of GATS stipulates that each member country shall publish in a timely manner relevant domestic laws, administrative orders and other decisions, rules and practices affecting measures for trade in services, as well as relevant international agreements it has signed or acceded to (paragraph 1); The member state shall timely and at least annually notify the Council for Trade in Services of the formulation or modification of laws, regulations and administrative directives that will have an important impact on its specific commitments on trade in services (paragraph 2); Each Member State shall establish an advisory body to respond in a timely manner to requests for information from other Member States (paragraph 3).
Transparency will undoubtedly help to ensure the fair implementation of measures related to trade in services, but it is not enough to eliminate the obstacles of domestic laws and regulations to liberalization. It is only a supplement to other mechanisms. Article 6 of GATS makes some principled provisions on the application of domestic laws and regulations. According to this provision, in the service sector where specific commitments are made, each Member State shall ensure that the relevant measures are implemented in a reasonable, objective and fair manner (paragraph 1); Establish judicial, arbitral or administrative bodies and procedures to enable service providers to obtain appropriate judicial or administrative remedies in a timely manner (para. 2); Ensure that qualification restrictions, procedural provisions, technical standards and licensing requirements do not constitute unnecessary barriers to trade in services (para. 4).
（5） Progressive liberalization
GATS has established gradual liberalization as a principle and confirmed that the level of liberalization should be gradually improved through several rounds of negotiations. GATs stipulate market access and national treatment as specific commitments, which means that they are not automatically applicable in all service sectors of all member countries, but that each member country makes its own commitments to the situation of undertaking these two obligations in specific service sectors and is bound by its commitments. Each member country has the discretion to choose the specific service sector in which to make market access and national treatment commitments. Articles 16 and 17 of GATS only stipulate the rules to be followed in the specific services/: Please remember that the domain name/department of our website makes commitments. The degree of liberalization of trade in services depends on the outcome of concessions made by member countries in these negotiations and varies greatly depending on the level of development of each country.
2、 Development Trend of WTO Financial Service Opening Rules
GATs and related agreements basically reflect the special requirements of trade in services and help promote the process of liberalization of trade in financial services. At present, however, GATs and related agreements still have some defects, which are mainly reflected in the application conditions of safeguard clauses and the restriction of market access on national treatment.
Paragraph 1 of Article 2 of the Appendix to Financial Services stipulates that Member States may take preventive measures to protect consumers and investors and ensure the integrity and stability of the financial system, but these measures cannot be used as a means for Member States to evade commitments or obligations. However, the article does not clearly define the definition and scope of preventive measures. This may cause controversy in practice. Another example is that prudential supervision measures are not subject to other provisions of GATs. However, the WTO did not define or list prudential measures, and member countries had heated debates on this issue on many occasions in the WTO. The focus of the debate was to clearly define prudential measures in order to establish necessary discipline and avoid abuse of regulatory measures and evasion of commitments and obligations.
In GATs, the boundaries between national treatment and market access are unclear. It is by taking advantage of the unclear boundary between national treatment and market access that member states rely on market access control measures to weaken their obligations of national treatment. For example, since countries generally do not assume the obligation of national treatment on market access, although a member country promises to give domestic foreign banks national treatment on capital requirements, it can still set higher capital requirements than domestic banks when approving the access of foreign banks, so that foreign banks can actually only enjoy lower treatment than domestic banks.
WTO is trying to solve these defects. Some documents have begun to require member countries to undertake certain obligations of national treatment in terms of market access. The "non discriminatory measures" in the "market access" part of the Understanding Agreement stipulates that, on the premise of non discrimination, each member country shall strive to eliminate non discriminatory measures that have a negative impact on the ability of financial service providers of other member countries to access the market of member countries. Discriminatory quantitative restrictions that require "prohibition" and "restriction" in the understanding agreement will be clearly defined as violations of market access obligations. This provision of the understanding agreement, in essence, requires member countries to undertake certain obligations of national treatment in terms of market access. The Global Financial Services Trade Agreement stipulates that "foreign companies have the same right to enter the domestic market as domestic companies". Although the agreement is only a "commitment" agreement, and its specific implementation still depends on the commitment of all countries, it is not mandatory, but it at least reflects a legislative trend. It can be seen that GATs are trying to implement the principle of national treatment in market access and eliminate the ambiguity of the scope of application of national treatment in GATs.
In the long run, to achieve a higher level of free trade in services, we need to solve the problem of differences in domestic laws. The approach is mutual recognition and harmonization of domestic laws. Although GATs do not stipulate "mutual recognition" as a multilateral obligation, they have allowed individual member states to mutually recognize the educational qualifications, licenses, qualifications, etc. obtained by service providers in their respective countries through coordination, agreement conclusion or automatic granting (Paragraph 1 of Article 7). Such "recognition" shall not contravene the principle of most favoured nation treatment, nor constitute a means of discrimination or a disguised restriction on trade in services (Article 7, paragraphs 2 and 3). In the field of financial services, the main content of mutual recognition is the preventive measures of each country (article 3 of the annex).
Although GATs have not defined a common minimum standard, they have emphasized the importance of common international standards. It stipulates that "recognition shall be based on multilaterally agreed standards. Where appropriate, member States shall cooperate with relevant intergovernmental and non-governmental international organizations to establish and adopt common international standards on recognition and on practices and professions in trade in services" (Article 7, paragraph 5). The application of common international standards in the field of trade in services is of great significance. It helps to overcome the differences between existing domestic laws, promote the convergence of domestic laws, regulations and policy objectives, and lay the foundation for recognition and coordination at the multilateral level in the future. In the field of financial services, common international standards for preventive measures are being adopted more and more widely. A typical example of this is the Basel Committee's Core Principles for Effective Banking Supervision, which stipulates the minimum standards for financial institutions in terms of business license, ownership transfer, bankruptcy liquidation, capital adequacy ratio, etc.
Section II The Significance and Planning of China's Financial Opening up
1、 Comprehensively view the opening of financial service market
For the opening of the financial service market, there has been a great shock at home and abroad. The biggest concern is whether China's financial system will be overwhelmed by foreign financial institutions? In fact, financial opening to the outside world is an objective need for China's economic development, and the financial sector will also benefit from it. Moreover, China's financial industry has certain competitiveness and is not vulnerable.
（1） Adapt to the objective needs of overall economic development
Economic globalization and financial globalization are the general trend. In the context of economic globalization, it is difficult for a country to develop independently from other countries. As a big country, China naturally cannot break away from the trend of economic globalization, resulting in economic marginalization. To participate in globalization, finance must be open. U.S. Commerce Secretary Daley declared that the most critical issues in the China US WTO accession negotiations fall in the fields of financial services such as banking and insurance.
The rapid development of China's foreign trade and foreign investment also needs foreign financial services to follow up. The establishment of branches by foreign banks in China can better meet the financial needs of multinational companies in their home countries, improve China's investment environment, and facilitate the flow of capital from the country to the Chinese market. It is estimated that after China's accession to the WTO, foreign direct investment (FDI) will rapidly rise from the current 50 billion US dollars per year to about 100 billion US dollars per year.
In the total amount of global transnational investment, the investment in the service industry is more than 50%. For foreign investors, China's manufacturing industry has become less attractive, and the service industry has become a hot spot for foreign investors to expect investment. The financial service industry is an industry that foreign investors are eager to invest in. International competition is a competition of comprehensive strength. Since the 20th century, any real power can not do without its financial strength, including Britain after World War I, the United States after World War II and Japan in the 1980s. The Asian financial crisis in 1997-1998 showed this more clearly. To become a first-class power, China must have a strong financial support. Financial opening up is one of the necessary conditions for becoming a financial power.
（2） Financial sector gains from opening up
This can be reflected in four aspects: the development effect of export-oriented economy, the innovation effect of financial system, the transfer effect of financial technology, and the effect of international operation.
China's entry into WTO will enable China to obtain equal foreign economic rules, which will inevitably promote the development of China's export-oriented economy. Joining WTO will also directly promote the increase of clothing and textile exports and agricultural trade volume. Based on two comprehensive considerations, the World Bank believes that China's export volume will increase from 3.7% to 7.3% in 2005, and its import volume will increase from 3.4% to 7.2%. The expansion of foreign trade volume will inevitably put forward new demands for financial services related to foreign trade. In particular, China's agricultural sector almost did not need commercial financial services before. After joining WTO, agriculture will become one of the main customers of commercial banks.
The entry of foreign financial institutions will generally promote the improvement of a country's financial quality. The process of China's financial reform will also be accelerated by opening up to the outside world, and China's financial industry will gain a good independent development environment more quickly. The acceleration of China's financial reform from 1999 to 2000, in addition to the urgent promotion of the task of expanding domestic demand, is a very important factor is the signing of the Sino US WTO agreement.
In the process of financial opening up, China can request developed countries to give more help in commercial technology and information network of banking services in accordance with Article 4 of GATS "Develop more participation of our country". At the same time, the entry of foreign financial institutions will also bring advanced business philosophy, management experience, professional technology, marketing methods, high-quality products and after-sales services, and promote the learning and follow-up of domestic financial enterprises through demonstration effects, talent flow, business exchanges and other ways.
Opening to the outside world has always had two sides. We should not only invite people in, but also go out. After joining WTO, according to the principle of reciprocity, Chinese banks can easily obtain the market access qualification of the signatory countries; On the other hand, the domestic regulatory authorities will also relax the restrictions on Chinese banks to set up institutions overseas and carry out overseas business. In this way, it will be easier to overcome the two institutional barriers that currently hinder the transnational operation of Chinese banks. The number of transnational enterprises in China will increase rapidly, which will provide rich business opportunities for China's banking industry to pursue overseas development strategies. The pace of overseas listing of Chinese enterprises is also accelerating, and both direct listing and indirect listing are very eager. At the same time, foreign enterprises and domestic foreign-funded enterprises can also access the domestic capital market for financing. This provides a rich source of business for the domestic securities industry.
（3） China's financial industry has preliminary competitiveness
The current Chinese banking system is formed in competition. This is fundamentally different from many domestic industries such as telecommunications and agriculture. After the promulgation of the Commercial Bank Law in 1995, China's commercial banks have achieved relatively standardized development in five aspects: (1) rapid expansion in number and scale. In particular, the rise of 100 joint-stock commercial banks and city commercial banks has improved the market structure of China's banking industry and promoted competition. (2) The ability to raise funds has been significantly enhanced. The capital relationship between commercial banks and the central bank changed from long-term net borrowing to net lending in 1997, and the net lending ratio reached 17.6% in 1999. (3) Diversified service varieties and income sources. The business variety has developed from simple deposit, loan and remittance to comprehensive financial services including investment consultation, personal finance, online banking, e-commerce, etc. The income composition of commercial banks reflects this change. In 1999, non interest income accounted for one of the operating income, with an average of 10.2% for the five major banks and 27.1% for the nine joint-stock commercial banks. (4) Extensive service objects. In 1995, the proportion of Chinese commercial banks' loans to non-state-owned sectors was 10.9%, and in 2000, the proportion reached more than 25%. More importantly, the concept of banking practitioners has changed greatly, competition and risk awareness are deeply rooted in the hearts of the people, and credit culture has been initially established. The government and society no longer regard commercial banks as "state organs", but as a service enterprise.
Moreover, in the competition with foreign banks, Chinese banks still have some exclusive competitive advantages. After 50 years of accumulation, China's banking system has established a branch network covering urban and rural areas throughout the country. Moreover, Chinese banks operate locally and have countless ties with Chinese residents and Chinese enterprises. For example, in terms of consumer loans, state-owned banks are very competitive with their network advantages and crowd tactics.
The competitiveness of the banking industry is increasing, and the securities industry and insurance industry also have preliminary competitiveness. Securities industry: By the end of May 2001, there were 101 securities companies and 143 securities investment consulting institutions. There are more than 100000 securities practitioners, 75% of whom have college degree or above, 8.5% of whom have master's degree or above. All securities have realized paperless issuance and trading. Shanghai and Shenzhen Stock Exchanges have established a world-class communication, trading, settlement and account management system. Its network covers the whole country. All securities operating institutions have begun to implement unified technical standards. The "Securities Law" and other standardized market institutional frameworks have also been implemented.
In the insurance industry, the market players are increasingly diversified and specialized. A pattern of insurance market competition in which state-owned insurance companies, joint-stock insurance companies, foreign-funded insurance branches, and Sino foreign joint venture insurance companies compete together is gradually taking shape. The basic principles and systems of insurance operation have gradually been in line with international practices. With the implementation of the Insurance Law and other laws and regulations, the competition in the insurance industry began to be standardized. The investment channels of insurance companies have also been broadened, and bond trading and fund investment have been allowed. The opening of the insurance markets in Shanghai and Guangzhou shows that Chinese insurance companies have not slowed down their development due to the competition from foreign capital. After a short period of pain, Chinese insurance companies still maintain a strong competitiveness and regain most of their market share.
（4） China's macro financial situation is relatively stable
On the whole, China's financial industry is in a safe state of operation. First, the value of the RMB is stable. The growth rate of the consumer price index was 0.4% in 2000 and 1% in the first nine months of 2001. Second, the RMB exchange rate is stable. The current nominal exchange rate of RMB is 5% higher than that in 1994, and the appreciation is more than 30% excluding price factors. Third, the balance of payments is in good condition, and the security indicators of foreign debt management are far below the internationally recognized warning line.
2、 The Strategic Plan of China's Financial Opening up
The trend of China's financial industry opening to the outside world is irreversible. Therefore, the question now is not whether to open up, but how to open up. Obviously, the ideal pattern is to "strive to promote the advantages and eliminate the disadvantages, and strive to achieve the overall advantages outweigh the disadvantages". To achieve this ideal state, we need to carefully design an open strategic plan. We believe that this strategic plan includes two aspects: first, improving the financial service infrastructure, including cleaning up and improving the financial legal system, improving the transparency of financial policies, establishing a prudent financial supervision system, promoting the modernization of the payment and clearing system, and cultivating social credit culture; The second is the carefully designed opening strategy, including grasping the initiative of financial opening and seeking necessary reasonable protection.
（1） Clean up and improve the financial legal system
In essence, WTO is a set of institutional framework to regulate economic operation, in which the legal system is obviously at the core. Therefore, after joining WTO, in order to make our financial institutions quickly adapt to international rules, we must clean up and improve our financial legal system.
The regulatory system regulating the operation of China's financial industry consists of three levels: the first is the financial laws formulated by the legislative authority, the second is the financial administrative regulations issued by the national administrative authority; The third is the financial regulations issued by the financial supervision authority. In China, the real financial legislation began in 1995. Previously, various regulations were prevailing. Due to different makers, there are also great differences in the perspective of considering problems. Therefore, these laws, regulations and rules are often inconsistent. Moreover, the authority, stability and transparency of laws and regulations have major defects. Therefore, sorting out and improving the existing financial laws and regulations will become the primary task for us to face the challenges of WTO. The standard for cleaning up and improving the financial legal system is to make them conform to the basic rules of WTO on financial opening and China's specific commitments.
1. Clearly and quantitatively define "foreign financial institutions"
The Regulations on the Administration of Foreign funded Financial Institutions (hereinafter referred to as the Regulations) does not clearly define the concept of foreign banks in a broad sense, but adopts the way of enumeration. With the opening and development of China's banking industry, foreign banks will appear in more and more complex forms, which cannot be contained in the enumeration legislation. The Regulation classifies domestic and foreign banks according to their capital sources, such as "banks with foreign capital whose head office is located in China", "banks jointly operated by foreign financial institutions and...", but it does not reflect the criteria of "control" in GATs, nor provide a judgment benchmark that conforms to the meaning of "ownership" in GATs. That is, it is not clear how to determine whether a domestic bank belongs to a branch set up by a foreign bank, nor how many shares a foreign financial institution holds in a bank. This bank can be regarded as a joint venture bank as stipulated in the Regulations. Obviously, if the concept of foreign banks is not clearly defined, it is difficult to clearly require foreign banks to undertake the obligation of national treatment. Therefore, it is necessary for the Banking Law to make a strict and general definition of foreign banks according to the relevant provisions of GATS.
2. Grant national treatment to foreign-funded financial institutions
As mentioned above, there is no abstract and generalized obligation of national treatment in GATs, and the obligation of national treatment undertaken by countries is actually linked with the specific commitment table. If the relevant service sector is not included in the column of national treatment in the commitment table, the relevant member country may not assume the obligation to grant national treatment to the service sector. Therefore, after China's accession to the WTO, in order to meet the requirements of national treatment of GATs, it is only necessary to ensure that foreign banks enjoy the national treatment clearly listed in the specific commitment table, as well as the mandatory national treatment requirements in the rules. Even if the restrictions on foreign banks will make the treatment of foreign banks lower than that of Chinese banks, as long as they do not violate the mandatory national treatment and China's specific commitments, China has the right to apply them.
According to the above explanation, the so-called provision of national treatment to foreign-funded financial institutions should first solve the "low national treatment" of foreign-funded financial institutions according to the requirements of the commitment table. First, cancel the existing restrictions on the business scope and business objects of foreign banks as promised. At the same time, the conditions for foreign banks to operate RMB business and the qualification of foreign banks to engage in auto consumption credit business should be clarified. The second is to establish the right of foreign banks to purchase and obtain financial services provided by public institutions, use public payment and clearing systems, and obtain official funds and refinancing facilities, as well as the corresponding conditions and procedures, and ensure that they enjoy national treatment.
Secondly, the "super national treatment" of foreign-funded financial institutions should be eliminated. It is mainly to incorporate foreign banks into China's existing prudential supervision system (such as the restriction of nine asset liability ratio indicators), and to restrict the financial management system of Chinese banks. In this way, the "super national treatment" enjoyed by foreign banks in such fields as the formulation and management fees of foreign exchange rates, the collection of commitment fees, the maturity of RMB interbank lending, the bad debt reserve system, the identification of non-performing assets and the policy of interest suspension, as well as the tax burden, should be abolished.
3. Guarantee the reform of financial marketization
The so-called reform of ensuring financial marketization mainly refers to the need to modify the part of the current financial legal system that does not meet the needs of market development. In other words, measures for financial marketization reform, such as interest rate marketization and deregulation, should be determined in legal form. It is particularly necessary to point out the elimination of monopoly. Article 8 of GATs "Monopoly and exclusive service providers" Provisions: "When a monopoly service provider of a Member State provides a service outside its monopoly right directly or through a branch and belongs to a specific commitment of the Member State, the Member State shall ensure that the provider does not abuse its monopoly position in its territory in a manner inconsistent with such commitment." According to this provision, Some privileges of existing state-owned commercial banks need to be abolished to achieve national treatment among domestic commercial banks (including non-state-owned commercial banks among domestic banks). The second is to fill in the gaps in the current financial laws. Such as the legal system of financial institutions' market exit, financial institutions' merger and acquisition law, deposit insurance law, financial e-commerce law, etc.
4. Give legal protection to existing innovative financial products and services in China
The legal protection of innovative financial products has become a common practice all over the world. This kind of domestic protection will naturally move towards international protection under the support of the basic principles of WTO. After foreign financial institutions have taken legal protection measures for their products and services, Chinese financial institutions are faced with a huge risk of infringement.
The intellectual property protection of the financial industry mainly includes: (1) patent protection of information systems and computer programs. (2) The trademark or service protection of the names of financial enterprises and products. (3) Copyright of financial and financial documents. Financial instruments, prospectuses, issuance and underwriting contracts and advertisements have copyrights, and computer programs used to support financial products also have copyrights. Even artistic creations on bank cheques or stock certificates can be protected by copyright.
Chinese funded financial institutions have operated for many years and created tens of thousands of financial products, applications, financial documents and trademarks, which are sufficient to apply for legal protection. The financial legal system needs to make appropriate arrangements for this, so that it has laws to follow.
Part 5: Model Measures for Financial Services to the Real Economy
After the State Council approved Wenzhou to set up a pilot financial reform at the end of March, a document in Shenzhen entitled "Several Opinions on Improving Financial Services to Support the Development of the Real Economy" once again pushed the topic of financial reform before people's eyes.
This 13 page Opinion covers many aspects of Shenzhen's financial reform, including solving the financing problem of SMEs, carrying out the pilot of Shenzhen Hong Kong cross-border RMB loan business, promoting the construction of Shenzhen Qianhai Equity Exchange, establishing a fund management agency for multinational companies, establishing a state-level venture capital master fund for strategic emerging industries, developing regional intensive bonds and private equity bonds, etc, Shenzhen has thus become the second stop of a new round of financial reform.
As soon as the news came out, the space for market interpretation and imagination was fully stimulated, and the stock market soared, especially in Shenzhen local stocks and financial sectors.
New attempt
Although they all serve the real economy, the focus of financial reform in Shenzhen and Wenzhou is different. Shenzhen's financial reform aims to explore new growth points in the future and use its own advantages to promote economic transformation. The latter is mainly to sort out the financial order and solve various problems arising from private lending.
Since 30 years of reform and opening up, Shenzhen has attracted a large number of funds and talents by virtue of the policy depression formed by its special zone identity and the market-oriented operation mechanism, which has created the rapid development of Shenzhen for more than 20 years. However, with the popularization of preferential policies and the gradual disappearance of demographic dividends, Shenzhen's sustainable development has become a bottleneck: the brain drain from the north and east is serious; Manufacturing and processing enterprises led by Foxconn are speeding up their relocation out of Shenzhen. The transformation has come too fast, and the traditional industrial structure can no longer meet the needs of future development. It is necessary to find new growth points through reform, so that Shenzhen can truly maintain the pace of rapid development.
For Shenzhen, trying to reform is to explore a new way forward. Similarly, this financial reform is also an effective attempt to transform Shenzhen into a "financial dividend zone", and is an engine to support the sustainable development of the real economy.
The financial reform opinions issued by Shenzhen this time mentioned the supporting role of financial services for the development of the real economy many times, which is a positive response to the national financial reform goals. The measures in the opinion aimed at economic strategic transformation and supporting small and medium-sized enterprises can bring the country's development experience of pioneering.
In addition to measures to ensure financial services for the real economy, Shenzhen has also made financial innovations specifically aimed at its two major advantages of Qianhai and its proximity to the Hong Kong Special Administrative Region. One of them is the pilot project of two-way cross-border loans with Hong Kong. During the construction of the "Qianhai Special Zone", Shenzhen strives for globalization in both talent recruitment and management concepts, hoping to directly connect with Hong Kong and become a backup platform for Hong Kong, an international financial center.
Focus on innovation
Among the twelve tasks of Wenzhou's financial reform, there are many eye-catching measures, including the development of small loan companies to a certain extent can become village banks, individual overseas investment, and the development of professional asset management institutions.
Similarly, Shenzhen's financial reform opinions are also highlighted. After comparing the two, it can be seen that Wenzhou's financial reform proposed by the State Council is comprehensive and outstanding, which is to repair and improve the existing financial system, make the underground finance sunny, and combined with various financial chaos in Wenzhou some time ago, it is quite a must do. The financial reform proposed by Shenzhen itself pays more attention to innovation, which is an exploration of new driving forces for sustainable growth based on its own advantages. Its core content is closer to the needs of strategic transformation, and its ideas are more referential. The main highlights include the following aspects:
"Accelerate the pilot of cross-border RMB loan business of Shenzhen and Hong Kong banks, and use Hong Kong low-cost RMB funds to pay for the development and opening up of Qianhai and the development of key industries." At present, the cost of RMB financing in China is on the high side, the loan interest rate is above the benchmark interest rate of 6.56%, and private lending is even more outrageous. In the environment of full competition in the banking industry, the cost of RMB funds in Hong Kong is low, Less than 3 per cent.
Therefore, after the pilot implementation, Shenzhen can not only reduce the cost of capital, but also introduce overseas RMB funds back to support its own enterprises. On the one hand, this will allow more capital to participate in the growth process of mainland enterprises, on the other hand, it will also allow overseas RMB to have a return channel, which will contribute to the construction of the RMB offshore market in Hong Kong.
"Strive for the approval of the state for multinational companies to set up an internal centralized fund management organization in Shenzhen to uniformly manage their own funds and meet the capital management needs of headquarters enterprises." Approving multinational companies to set up an internal centralized fund management organization in Shenzhen and supporting multinational companies to set up a global settlement center in Qianhai will help to achieve the integration and regulation of funds within the multinational company group, It can not only promote local production and cross-border trade, but also promote the development of intermediate business of financial institutions and the building of financial centers.
"To study and formulate financial service plans that adapt to the financing characteristics of SMEs, such as regional centralized premium bonds, and promote their implementation." In order to solve the financing difficulties of SMEs, Foshan, Weifang and other places have launched regional centralized premium bonds financing mode earlier. The core of the financing mechanism is to introduce local government resources to boost SME bond issuance, that is, the local government establishes a SME direct financing development fund as a guarantee. When the issuing enterprise cannot repay the due funds, the fund will repay them on behalf of the issuing enterprise. The implementation of this model will provide the possibility and policy guarantee for Shenzhen SMEs to use the bond market to raise funds, reduce the financing threshold for SMEs, and is an exploration and innovation of direct financing for SMEs. It is worth noting that although government participation can ensure the security of bonds, it may cause moral hazard, so the arrangement of relevant systems must be cautious.
It is undeniable that the above innovative measures still need the introduction of relevant supporting systems and measures, such as the supervision of arbitrage behavior that may occur in cross-border loan business, the control of moral hazard in government participation in bond issuance, and the need for the state to authorize the free cross-border flow of capital within a certain range for the centralized fund management institutions of multinational companies.
Of course, the introduction of this series of supporting measures is premised on the positive reply of the State Council to Shenzhen's financial reform opinions.
Looking forward to the third stop
After the Wenzhou pilot project, Shenzhen proposed another major measure of financial reform, which indicates that a new round of financial reform may be fully launched.
Since the Central Economic Work Conference at the end of 2011, the central government has continuously emphasized the importance of the real economy, which cannot develop without finance. The media function of finance can guide social funds to automatically flow to the most efficient industries and enterprises in the real economy, thus improving the productivity of the whole society. Looking at the current financial industry in China, the function of the media is still lacking. For a long time, funds are biased towards large enterprises represented by state-owned enterprises, while SMEs with stronger economic vitality often face financing problems. In addition, the large amount of funds flooded in various investment markets is enough to warn people to reflect on the harm of financial bubbles and the hollowing out of the real economy.
Therefore, financial reform has become an inevitable choice for the current transformation of economic development mode and industrial transformation and upgrading, to solve the problem of difficult and expensive financing of real industries, and to restrain social capital from "turning from reality to emptiness".
In addition to the support for the real economy, the financial reforms in both places have also shown different degrees of RMB internationalization. Wenzhou reform proposed to study and carry out pilot projects of individual overseas direct investment to let RMB "go out", while Shenzhen's cross-border RMB loan business has "brought back" RMB. The RMB internationalization jointly promoted by the two cities can not only lead the domestic surplus funds to a broader international capital market, but also lead the outflow of RMB back to the domestic real economy, which enhances the flow of RMB in the international market and is conducive to promoting the strategy of RMB internationalization.
Both Wenzhou financial pilot and Shenzhen financial innovation have put forward some personalized measures based on their own characteristics while ensuring the development of the real economy and the RMB internationalization strategy. This also gives us a signal that this financial reform may change the previous "one size fits all" model, and will be more tailored to local conditions and more regional. In the future, which city will become the third stop of the new round of financial reform, and which personalized reform measures will be introduced, is worth looking forward to.
Part 6: Model Measures for Financial Services to the Real Economy
1、 Hold the tone of seeking progress while maintaining stability and maintain a reasonable scale of social financing.
It is one of the ten counties severely affected by the "5.12" Wenchuan earthquake in 2008. During the three-year post disaster reconstruction period, financial institutions made full use of the preferential financial policies in the earthquake stricken areas, increased support services to the disaster areas, and made contributions to the construction of a beautiful new home. At present, it is another historical opportunity period for the county economy to reach a higher level. Financial institutions should study and implement the spirit of the Central Economic Work Conference and the National Financial Work Conference, grasp the general tone of seeking progress while maintaining stability, adhere to the implementation of sound monetary policies, and follow the idea of "stabilizing growth, seeking progress at a high position, and accelerating development" proposed at the second plenary session of the sixth municipal party committee, Focusing on the national measures of implementing the "12th Five Year" Western Development Plan, developing and strengthening the cultural industry, promoting agricultural scientific and technological innovation and construction of farmland and water conservancy, and promoting the construction of a science and technology city, we will identify the junction of financial support for local economic development, promote indirect financing and direct financing, and maintain a reasonable overall scale of social financing.
2、 We will implement the credit policy of "support and control", and expand the "green channel" between financial service entities and people's livelihood.
First, all financial institutions should carefully sort out the existing business scope, business items and content, and strive for superior banks (social organizations and companies) to be included in the priority pilot counties of financial product innovation, business innovation, system innovation and internal comprehensive reform through various ways, so as to expand the business development space and extend the business authority. Second, we should organically combine the implementation of national financial macro-control policies and measures with support for county economic development, further improve the credit structure, invest funds in small and medium-sized enterprises, micro enterprises, "agriculture, rural areas and farmers" and affordable housing construction, and strictly restrict investment in industries with high energy consumption, high pollution, excess and low-level redundant construction, We will promote the rational development and utilization of resources and environmental protection. Promote the transformation of local economic development mode by optimizing the allocation of credit resources. Third, it is necessary to promote the formulation and implementation of supporting policies for local industrial investment funds, and promote the competent economic departments to guide enterprises to choose opportunities to carry out direct financing, such as supporting county backbone enterprises to issue short-term financing bonds, collective bills, etc. in the inter-bank bond market, and supporting technology-based SMEs to finance in the "entrepreneurial" market to achieve financing diversification. Fourth, we will continue to implement the "Financial Oasis Plan" and the "Financial Support for the Development and Improvement of Wenchuan Earthquake Affected Areas", actively explore and develop financial products, launch new financial market tools that meet the needs of county economic development, and strive to establish a long-term mechanism for financial support for the implementation of the strategy of "ecological county, industrial county, tourism county, and harmonious development".
3、 We will further improve the county financial ecological environment and promote sound economic and financial interaction.
Credit is the basic resource of economic development. First, we should continue to follow the principle of "government led, people's bank promoted, and all parties linked" proposed by the provincial government, improve the relevant measures to create a model county of financial ecological environment, focus on the implementation of phased tasks, and ensure the normalization of the creation work. The second is to establish and improve the deterrence mechanism of joint law enforcement, increase the enforcement of successful financial cases, and effectively safeguard financial claims. Third, we will focus on establishing and improving the business model of "farmers+credit investigation+credit", and further promote the construction of rural credit system pilot areas. Strengthen the construction of credit system for small and medium-sized enterprises, and expand the cultivation scope of honest small and medium-sized enterprises. We should guide financial institutions to increase their credit input to small and medium-sized enterprises with credit and markets, and give full play to the positive incentive role of credit. Build a new relationship between government, banks and enterprises, enhance the attraction and cohesion of local financial resources, improve the efficiency of financial resource allocation, and promote sound economic and financial interaction.
Part 7: Model Measures for Financial Services to the Real Economy
In order to investigate how the production industry and manufacturing industry achieve coordinated development, it is proposed to analyze from the United States, Japan, Britain, Italy, South Korea, Singapore and other countries. However, the development level of the manufacturing industry in the above countries is far higher than that of the production industry, so it can be considered that promoting the development of the production industry and its cluster development is an important means to achieve the coordinated development of the two.
（1） United States. Manufacturing is the engine of American economic growth, while the growth of service industry mainly depends on production. However, the contribution of American manufacturing industry to the economy has declined rapidly in recent years, and there has been a quite obvious phenomenon of "industrial hollowing". The "reindustrialization" strategy implemented by the United States to reverse the pattern of economic development aims to guide the transfer of resources from the service industry, especially the production industry, to the manufacturing industry. For example, the Manufacturing Promotion Act signed by US President Obama aims to create more jobs while reducing costs and restoring competitiveness of the manufacturing industry through various measures, thus realizing the strategic contraction of economic development. In addition, in order to achieve an effective docking with the manufacturing industry, and at the same time highlight the importance of high-tech industry and information industry for economic development, we should actively build production clusters in high-tech industrial zones and emerging industrial zones, such as supporting R&D, design, finance, intermediary services and other industries in Silicon Valley.
（2） Japan. Japan's manufacturing industry gradually developed into an industrial layout dominated by heavy chemical industry between 1956 and 1973, becoming an important driving force for economic growth, and implemented the transformation and upgrading of industries from energy and capital intensive to knowledge and technology intensive between 1974 and 1991. On the whole, Japan's industrial upgrading path can be considered as the coordinated and leading promotion of labor-intensive industry, heavy chemical industry, high processing assembly industry, technology intensive industry and service industry, that is, the active interaction and docking of manufacturing industry and service industry, especially the production industry, is an important channel to achieve effective transformation and upgrading. Japan's support policies for the service industry mainly include improving the dynamic statistical survey system and related policy system, establishing the Japanese Service Quality Award and Service Research Center, and then driving the development of clusters.
（3） UK. In promoting the development of the production industry, the UK has mainly taken four measures, namely, lifting the barriers in company registration to encourage the establishment of enterprises, opening the capital market to make it easier for enterprises to finance, the government to provide advisory services and guide the development of enterprises, and developing education and vocational training to improve the ability of workers to engage in the service industry. For example, the government ensures the smooth implementation of vocational education and training through relevant laws, white papers and specific measures, and the establishment of major institutions. The UK production industry cluster is closely related to its leading industry. For example, since the total number of biotechnology enterprises in the UK accounts for about 1/3 of European biotechnology companies, the UK government has formed a number of production industry clusters around the biotechnology industry with obvious characteristics, mainly including providing first-class R&D service system, perfect financial service system Supporting professional service institutions and sound labor force and employment mechanism.
（4） Italy. The main body of Italian economic development is small and medium-sized enterprises. Therefore, how to achieve clusters for small and medium-sized enterprises is the key guidance of the policy, and how to effectively integrate and connect 199 industrial clusters, including textile, leather shoes, furniture, machinery, food and other industries, is an important issue for Italian industries to enhance their competitiveness. In Italy, there is a clear trend of separation between production and manufacturing, that is, manufacturing enterprises are usually responsible for general production and operation activities, and the related production industries are mainly handed over to professional service agencies. The government actively promotes the cluster development of the production industry mainly from the aspects of improving the financial service system, intermediary services, education and training, and the positive development role of industry associations. For example, a special SME bank provides credit support and low interest loans for the development of SMEs, and the government has also set up a special fund for innovation and R&D support of SMEs.
（5） Korea. South Korea promotes the upgrading of manufacturing industry by attaching importance to the R&D service industry, cultivates the information industry as a strategic industry, and standardizes and encourages the development of financial leasing service industry through legislation to accelerate the development process of the production industry. The main experience of the Korean manufacturing industry in promoting the transformation and upgrading of the manufacturing industry includes encouraging professional investment in R&D institutions, focusing on improving industrial technological capabilities with human capital as the carrier, promoting the value of the industry brand by vigorously developing the design industry, concentrating limited financial resources to support the priority development of leading industries, and attaching importance to playing the guiding role of the government in R&D service activities. Taking the development and application of CDMA as an example, the technology was successfully developed by Qualcomm, and Korean enterprises participated in a small proportion. However, the government led Samsung, LG and other companies to form a joint research team and provide financial assistance, which directly promoted Korean enterprises to gradually increase the proportion of research and development, and finally formed enterprise led research and development.
（6） Singapore. Singapore has accelerated the development of industrial clusters through measures such as headquarters economic construction, formulating national strategies to promote knowledge intensive service industries such as information and R&D, accelerating the construction of logistics centers, optimizing the development environment of exhibition industry, providing preferential policies to stimulate foreign entrepreneurs, and paying attention to human resources training. For example, Singapore has introduced the National Computerization Plan, the National Information Technology Plan, the Information Technology 2000 Plan, the E-commerce Cultivation Plan, and the E-commerce Major Plan to continuously and steadily accelerate the development of knowledge intensive production. The service industry, especially the production industry, is the leading direction of Singapore's economic development. For example, in the next decade plan announced in 2000, the main task of the national strategy is to build an economy based on high value-added knowledge-based industries.
2、 Regional reference for coordinated development of production and manufacturing
In order to speed up the transformation of the mode of economic growth, local governments at all levels in China have actively introduced relevant measures, and the coordinated development of the production industry and manufacturing industry is an important path. In view of the great differences in the measures taken by various provinces and regions in China, we will focus on Shanghai, Beijing, Hong Kong, Taiwan, Guangdong, Jiangsu and other provinces and cities.
（1） Shanghai. Shanghai mainly guides the coordinated development of the production industry and manufacturing industry by taking measures such as withdrawing from low-end manufacturing industry, optimizing the production industry, entering the production industry and seizing the production industry, and leading strategic emerging industries. For example, in 2005, it was proposed to withdraw from low-end manufacturing industry and gradually implement the plan of providing "3+5" production industry to the manufacturing industry in the Yangtze River Delta. Three key professional industries are automobile services, engineering equipment supporting services and industrial information services, and five public industries are technical services, modern logistics, industrial real estate, industrial consulting services and other industrial services. In the strategy of "excellent two into three", we should actively promote the integration of manufacturing and production industries led by multinational companies and Shanghai manufacturing enterprises. Through the simultaneous development of 100 billion level industrial parks, 100 billion level industrial clusters, production functional zones and creative industry clusters, we will strive to lead the industrial system of strategic emerging industries to drive the production industry to achieve coordinated development.
（2） Beijing. In 2012, Beijing's 12th Five Year Plan for the Development of Production Industry, it was clearly proposed to take the development of industrial integration as the guidance, take the promotion of the development of the production industry as the strategic focus of industrial structure optimization, and vigorously promote the innovation of financial products and financial instruments, the improvement of industrial informatization, and the effective support of scientific and technological services, Accelerate the coordinated development of the production industry, modern manufacturing industry and other industries in production, management, business activities and other links. In order to promote the development of the production industry, Beijing has introduced a number of incentive measures, such as the Several Policies of Beijing to Promote the Development of Cultural and Creative Industries, as well as the investment guidance catalog of cultural and creative industries, the identification method of industrial clusters and other related rules, based on the principles of clear industry positioning, promotion of professional institutions, and appropriate government guidance, To enhance the pulling effect of cultural and creative industries on the development of manufacturing industry.
（3） Hong Kong. Hong Kong has implemented the "front store and back factory" development strategy, focusing on the development of the production industry and strengthening the integration with the manufacturing industry. By implementing the free trade policy and investment policy of low tax rate, we will vigorously develop entrepot trade, thus driving the development of local transportation, warehousing, finance, commerce, consulting and other production industries. The resulting production agglomeration radiates the production industry in the mainland and the transformation and upgrading of manufacturing industry serving the mainland. We strengthened legislation and provided legal protection for the development of the production industry by building a sound legal and regulatory system, and mainly adopted market behavior for industrial development, that is, market leadership plus government assistance with minimal intervention and maximum support, and actively sought to achieve the coordinated development of the production industry and manufacturing industry through government guidance, technology integration, service docking and other ways.
（4） Taiwan. The development focus of Taiwan's production industry mainly includes the knowledge intensive technology service industry and the R&D service industry focusing on industrial design services. At the same time, it vigorously develops the production industry through the "Challenge 2008 - Key Development Plan". In the Service Industry Development Program and Action Plan, it is proposed to comprehensively promote the development of the production industry, spread to other productive industries on the basis of emphasizing the development of the information industry, and provide support for the improvement of the manufacturing industry. At the government level, through the formulation of local laws and regulations and the promotion of industrial upgrading, we actively promote the innovation and improvement of systems in promoting industrial upgrading, maintaining market equity, promoting scientific and technological development, supporting small and medium-sized enterprises, and promoting financial liberalization. At the industry level, various industrial organizations have been actively established. For example, the Taiwan Electrical and Electronic Industry Association, through the establishment of NGOs, has actively implemented industry self-discipline to promote the development of labor-intensive industries to technology and capital intensive industries, and at the same time, increase the strength of ties with related production industries. In general, Taiwan has taken measures such as government leadership and service docking to give consideration to industrial integration when promoting independent innovation, so as to seek the initiative of economic development.
（5） Guangdong. Guangdong has implemented the "double transfer" strategy since 2008, clearly proposing to undertake high value-added industries such as advanced manufacturing, high-tech industries and modern service industries at home and abroad, and promote the industrial upgrading of the Pearl River Delta and the economic development of underdeveloped regions in Guangdong It also emphasized the importance of the coordinated development of the production industry and manufacturing industry to the transformation of the economic development mode. At the same time, in 2008, it proposed to focus on the development of six major industries with modern services and advanced manufacturing as the core to promote the integrated development of production and manufacturing by means of reinforcing weak points, building carriers, establishing funds, and creating platforms. Each region of Guangdong has also actively introduced relevant measures to promote industrial collaboration, such as actively implementing the strategy of "service+manufacturing+creation" and striving to build the brand of "Guangzhou service". At the same time, in order to steadily promote the export-oriented economic development of Guangzhou, while continuing to promote the extension of the industrial chain of processing trade enterprises in Hong Kong, Macao and Taiwan, and strengthening the integration, transformation and upgrading of the production industry and advanced manufacturing industry, support the independent innovation, technological transformation and brand management of processing trade enterprises through policy support.
（6） Jiangsu. Jiangsu speeds up the coordinated development of production industry and manufacturing industry by focusing on the base, promoting agglomeration, re cultivating and promoting, taking manufacturing industry as the link, especially advanced manufacturing industry as the node. By 2009, 46 export industrial clusters had been cultivated, which greatly improved the competitiveness of the manufacturing industry, but the development level of the production industry has not been steadily improved, so Jiangsu's policies at all levels actively adopted corresponding measures to accelerate the development of the production industry. For example, Wuxi actively encourages various entities to enter the production field in various ways by relaxing the market access threshold, and at the same time takes preferential measures such as government finance to strengthen the link with the manufacturing industry while improving the level of production. In addition, other regions of China have also introduced corresponding measures to accelerate the transformation of the mode of economic growth, so as to promote the integrated development of the production industry and manufacturing industry. The State Council issued Several Opinions on Supporting Fujian Province to Accelerate the Construction of the Economic Zone on the West Side of the Straits, proposing to build an advanced manufacturing base on the west side of the Straits, encourage Hong Kong and Macao investment funds to carry out venture capital business in Fujian, attract Hong Kong and Macao venture capital companies to invest, or cooperate with local companies in Fujian to create venture capital funds, It can be seen that the advanced manufacturing base under the new industrialization is reflected in promoting the cross integration of manufacturing and service industries. In 2009, Shandong proposed to promote the development and construction of manufacturing and production industries in the efficient ecological economic zone of the Yellow River Delta by giving full play to its comparative advantages, promoting industrial restructuring and promoting transformation and development. Tianjin supports the cultivation and development of "big industry" through the introduction of "big capital", and Chongqing highlights local financial innovation and drives transformation and development through the implementation of the strategy of "big investment, big pillar, big base, big enterprise, and big project". Shenzhen has introduced the "6+1" talent policy to strengthen the support of high-end talent elements and provide intellectual support for the integrated development of the production industry and manufacturing industry.
3、 Measures to promote the coordinated development of production industry and manufacturing industry in China
The development level of China's production industry is relatively low, which is difficult to provide effective support for the transformation of the manufacturing industry. We should promote the transformation and upgrading of the economy through the joint development of the production industry and the manufacturing industry. Therefore, it is proposed to put forward measures and arrangements to promote the development of manufacturing industry through the production industry in terms of actively promoting the transformation of manufacturing industry and accelerating the upgrading of the production industry.
（1） Actively promote the transformation of manufacturing industry. Improve competitiveness through technology upgrading. At present, China's manufacturing industry has generally fallen into the trap of low level growth, which is caused by the extensive economic growth mode, that is, the relatively low level of technology. Manufacturing industry plays an important role in China's economic development and will provide an important economic basis for the development of production industry. While actively implementing technological innovation and upgrading, China's manufacturing industry should upgrade and innovate in production technology, process, product variety, structure, quality, industrial chain extension and other aspects to enhance its core competitiveness. Strengthen the connection between different manufacturing industries to form a relatively complete industrial chain. Through industrial adjustment and restructuring, we will become bigger and stronger, build large enterprises in the manufacturing industry to enhance core competitiveness, and form an orderly industrial chain through horizontal and vertical links between different industries. The government should take corresponding measures to guide the formation of industrial clusters, and introduce preferential policies to effectively link different clusters. Establish cross industry shared R&D institutions and technological innovation platforms. Integrate R&D personnel scattered in all walks of life, set up R&D institutions with industry as the unit, and set up cross industry shared R&D institutions with market as the main and government regulation as the auxiliary, especially build corresponding third-party and fourth party information platforms. Accelerate the establishment of a group of industry university research consortia with enterprises as the main body, universities and scientific research institutes as the support, and modern enterprise system as the standard. On this basis, the government advocates the formation of some common technological innovation platforms, and cultivate regional scientific and technological innovation service centers and sub centers. Encourage the manufacturing industry to separate the second and third industries. The government should introduce preferential measures, such as tax and land policies, encourage the manufacturing industry to implement the separation of the second and third industries, separate the production industry from the industry, implement service outsourcing and build new industries. The separation can not only enhance the core competitiveness of the manufacturing industry and urge enterprises to use their main resources to achieve economies of scope and scale, but also provide a stable demand channel for the development of the service industry and realize the coordinated development of the manufacturing industry and the production industry.
Part 8: Model Measures for Financial Services to the Real Economy
Key words: trade barriers to financial services; Legal countermeasures
CLC No.: F83 Document ID Code: A
1、 The Meaning and Causes of Trade Barriers in Financial Services
（1） The meaning of trade barriers in financial services. There has always been a dispute about the meaning of trade barriers in financial services. The author believes that Cui Jian, a graduate student of Wuhan University, in his master's thesis (Comparative Study of Trade Barriers in International Financial Services - Focusing on the Internationalization of China's Banking Industry), defines the trade barriers in financial services reasonably, that is, the trade barriers in financial services are due to unnatural reasons, Various policies and measures adopted by a country or regional government that are related to the trade in financial services (directly or indirectly) and have a non incentive effect on foreign financial service providers, including policies and measures that directly or indirectly increase the production or sales costs of foreign financial service producers or providers.
（2） The causes of trade barriers in financial services. At present, the barriers to international financial service trade are mainly manifested in the control of overseas financial service providers to set up financial service institutions in their own countries, or the restriction of their business operations after granting them market access. Since there are barriers to trade in financial services between different countries, which hinder the liberalization of trade in financial services and affect the economic interests of countries, the liberalization of trade in financial services can be achieved only by reducing the barriers to trade in financial services. The main reasons for the barriers to trade in financial services are:
1. The financial industry is the core of modern economy, which provides a living space for trade barriers in financial services. In the context of economic globalization, the financial industry is the core of the modern economy. The security and stability of the financial industry are the basic conditions for promoting sound and rapid economic and social development. It plays a core command role in economic development. It constantly expands new fields through the distribution and combination of monetary funds, the adjustment of interest rates and exchange rates, the selection of financial assets, the provision of information tools, etc, Therefore, the development of the financial industry is directly related to the success or failure of a country's economy. The opening of the financial services trade market is not only related to the development of the financial industry and the financial market itself, but also related to the stability and development of a country's economy. Therefore, all countries in the world have taken a cautious attitude towards the opening of the financial market in consideration of their own economic interests, and the protection of the financial industry has also put more emphasis on the security of the entire national economy. In fact, many exemption and exception clauses in the General Agreement on Trade in Services (GATs) can be regarded as the legal basis for moderately maintaining the barriers to trade in financial services. To some extent, it is recognized that member countries can moderately maintain a certain range of barriers and gradually open their domestic markets according to the level of economic development and policy objectives. The purpose is to take temporary and remedial measures without being bound by the agreement when member countries have difficulties in economic development.
2. The existence of trade barriers in financial services is conducive to strengthening the government's macro-economic control capacity. The opening of the financial service industry not only promotes economic development, but also provides opportunities for the outbreak of economic instability. This requires the financial industry to give full play to its functions under the regulation of law, provide a monetary payment mechanism for the economy and society and build a credit system for the economy and society. However, these are important to the security The moderate balance between liquidity and profitability puts forward strict requirements, so we should try to improve and protect the relationship between monetary mechanism and credit. By adjusting and standardizing the financial industry, we will further enhance the government's macro-economic regulation ability, especially the financial supervision, because foreign financial institutions not only have the intention and ability to evade supervision, but also their entry will intensify the competition in the domestic financial service industry. Therefore, all countries are cautious about the access of foreign financial institutions.
3. The existence of trade barriers in financial services is the need of national economic security. Although barriers to trade in financial services hinder the development of international trade, they can play a role in trade protection, and sometimes these barriers and protection are overlapping and cannot be completely distinguished. For countries, the financial structure formed in the process of economic development is more or less different. For example, countries such as Britain and the United States have developed securities markets, and investment banks (merchant banks) are strong, so their banking and securities industries are separate; The securities markets of continental European countries are relatively weak, so they mostly implement universal banking system, and commercial banks have great control over enterprises. Therefore, in some countries, the financial sector and financial market with fast development and strong competitiveness may develop slowly and have weak competitiveness in other countries. In order to protect these relatively weak financial institutions from the impact of foreign counterparts, countries usually take some barrier measures. For the majority of developing countries, because of their underdeveloped financial industry, they have to take a large number of barrier measures when facing the competition from foreign financial institutions, and these countries also regard capital mobilization and fund raising as their main goals. In this case, the domestic financial service industry should be strictly protected and regulated.
2、 The Impact of Trade Barriers in Financial Services on China
（1） The unfavorable aspects of trade barriers in financial services to China. Trade barriers to financial services have some adverse effects on the import and export of our products. Due to the differences in trade barriers to financial services among countries, the competitiveness of financial services in developed countries has not been weakened to a certain extent, and the financial services in our market are also very competitive with those in China. It has a great negative impact on China's export of financial services. Due to the relatively mature barriers to trade in financial services in developed countries, and some standards are too strict, China is difficult to adapt. China's export of financial services is not very responsive, resulting in the relative reduction of China's export quota of financial services, which also weakens the international competitiveness of China's financial services.
（2） The favorable aspects of trade barriers in financial services to China. China can learn from developed countries' financial service trade barriers to make China's financial service trade barriers under the WTO/GATT framework more mature, which is not only conducive to maintaining the safety of China's financial services and competitiveness in China, but also conducive to improving the quality of China's financial service trade, actively participating in international competition, and improving the strength of China's financial industry as a whole.
3、 Main legal countermeasures against trade barriers in financial services
（1） Further improve China's financial legal system. The financial service legal system of a country is not only a concentrated reflection of the openness of the financial service industry of a country, but also a guarantee for the smooth liberalization of financial service trade and the stable growth of the domestic economy. In recent years, the framework of China's financial legislation has been basically established, but there is a clear gap between China's financial legislation system and the international financial legislation system in terms of its systematicness, coordination and openness. Some laws are mere formality and cannot be effectively implemented, which is not conducive to the development of China's foreign trade, and will also be used by other countries. Therefore, we should follow the rules and practices of WTO, In combination with the specific national conditions, we will build a comprehensive and standardized financial legal system that conforms to the international financial integration. Mainly formulated the Foreign Trade Law, the Company Law, the Commercial Bank Law, the Securities Law, the Insurance Law, the Foreign Exchange Law, the Bill Law, the Guarantee Law, the Futures Law, the Trust Law and other relevant laws; Further formulate specific implementation rules in the form of administrative regulations or ministerial rules; Complete supplement by means of judicial interpretation; On the premise of maintaining national economic security, abolish and modify relevant domestic laws that conflict with the financial legal rules of WTO, so as to make our financial legal system consistent with the legal system of WTO, and provide behavioral basis for fair and reasonable trade in financial services.
（2） Carefully study the multilateral legal system of liberalization of trade in financial services, relevant laws of major countries on financial trade, and typical cases of disputes over international trade in financial services. Only laws and regulations (mainly GATS, FAS Letter of Understanding, Ministerial Resolution, Basel Accord, International Monetary Fund Agreement, World Bank Agreement, North American Free Trade Agreement, European Community Agreement on Trade in Financial Services and International Practice of Financial Transactions), to be fully and carefully studied and analyzed, and to verify its legitimacy and rationality, so as to accurately predict the consequences of its actions, Consciously apply relevant laws to regulate the behavior in international financial service trade, and take corresponding countermeasures. At the same time, we should participate in the signing of multilateral agreements selectively and in stages, so that China can gradually adapt to the laws and regulations of financial service trade. In addition, due to the case law nature of GATT/WTO cases, we should deeply study the typical cases of GATT/WTO disputes related to financial services trade, constantly summarize the experience of international financial services trade, avoid the emergence of financial services trade disputes and control disputes to be resolved in the consultation stage, and safeguard China's legitimate rights and interests in international trade.
（3） Strengthen cooperation with other countries, especially with developing countries and trade partner countries. As there are still great differences between developed countries and developing countries on the issue of financial services trade, some developed countries have set up barriers to financial services trade in order to protect their own markets, so the majority of developing countries should strengthen cooperation; China should rely on its influence in the world economy and trade and use various opportunities to unite with more developing countries to prevent developed countries from abusing trade barriers. Strengthening international cooperation, especially with trade partner countries, on the one hand, is conducive to breaking the barriers to trade in financial services, facilitating exchanges with countries, letting countries around the world know about China, and laying the foundation for China to win a favorable position in various treaties; On the other hand, it can also timely understand the laws and regulations of trade partners on financial service trade, provide relevant information for China's financial service trade in a timely manner, and provide convenient conditions for strengthening the international competitiveness of China's financial industry.
（4） Cultivate the competitiveness of China's financial industry. The financial industry includes banking, securities, insurance, trust, fund and other specific industries, among which banking plays a pivotal role in the financial industry. At present, the supervision of the banking industry in China is basically a mechanism of unified management of domestic and foreign financial institutions, and the supervision power is exercised by the Banking Regulatory Commission. In this case, it is necessary to promote the transformation of the banking business strategy in accordance with relevant legal standards, and become an economic entity with independent operation, self financing, self balancing and self-development in the bank. When opening our financial market to foreign financial institutions, we should provide sufficient legal protection for domestic financial institutions and gradually improve the international competitiveness of our banking industry. In addition, the government can also use administrative means to enhance the competitiveness of China's banking industry according to the economic situation. Paragraph 1 of Article 15 of GATS clearly states: "Negotiations should recognize the role of subsidies in the development plans of developing countries, and attach importance to the flexibility required by members, especially developing country members, in this field." Therefore, this provides a legal basis for China to implement subsidies.
(Author's unit: 1. Hebei University of Economics and Trade; 2. Hebei Economic Management School)
Main references:
[1] Deng Jie. A Brief Analysis of Liberalization and Barrier Protection of Service Trade. Legal and Commercial Studies, January 1991
Part 9: Model Measures for Financial Services to the Real Economy
（1） The performance of rural financial demand imbalance
1. The contradiction between supply and demand caused by rigid demand for rural funds and insufficient supply of loans. First, the demand for credit funds is strong and the supply is insufficient. At the end of 2009, the deposit to loan ratio of a county-level city banking financial institution was only 32.89%, with a deposit balance of 20.2 billion yuan, of which the balance of agricultural loans accounted for only 38% of the loan balance of financial institutions. In particular, the problem of "difficult loans" for rural enterprises and farmers' professional cooperative organizations is more prominent. Due to the large investment, long cycle and high risk in rural infrastructure construction, rural financial institutions lack the willingness to intervene. Second, the rural financial supply and demand structure do not match. At present, the rural economic structure is obviously tending to diversification and multi-level. The rural industrial structure is no longer a single primary industry. The secondary and tertiary industries have developed considerably. The internal production structure of various industries is also diversified. The multi-level nature of the economic structure objectively requires that rural finance provide multi-level and diversified needs. However, at present, the rural financial institutions are single, the development of banks, securities and insurance industries is uncoordinated, financial products are few, and the functions are imperfect, which cannot effectively meet the diversified and multi-level financial needs of rural areas.
2. There is a sharp contrast between the diversity of demand for funds in rural economic adjustment and the oneness of financial services. In terms of service variety innovation, at present, rural financial institutions still use traditional financial service means. The financial business is dominated by traditional deposits, loans and remittances, lacking comprehensive services such as financial management and consultation. In terms of loans, acceptance bill discount, accounts receivable financing, etc., there is a lack of service variety innovation, which can not fully meet the needs of rural economic development. In terms of service mode innovation, farmers and rural small enterprises' demand for loans is characterized by "short" and "urgent", while some financial institutions still lag behind in the approval process, service quality, service efficiency, and the promotion and application of scientific and technological means. Some credit department staff reflect that there are as many as seven procedures for large loans from filling in the form to final approval. It usually takes more than a week, or even more than a month, from applying for a loan to getting the loan. The cumbersome loan procedures cannot fully meet the fast-paced and efficient service needs of modern society.
3. The loan mechanism of existing financial institutions does not match the rural financial demand. First, the loan interest rate is on the high side. The loan interest rate of some financial institutions has risen to about 30-70%, and farmers' loan interest burden is heavy. Second, it is difficult to guarantee mortgage. According to the loan mechanism of some existing financial institutions, the direct reason for the "difficulty in lending" in rural areas is that farmers and rural enterprises are difficult to provide effective collateral, and most of farmers' land use rights, farmers' housing and agricultural products do not meet the mortgage conditions, which limits the loan delivery. Third, the amount of small agricultural loans is too small. According to the survey conducted by the author, 80% of the respondents believe that the amount of small agricultural loans is too small and large agricultural loan funds are urgently needed.
（2） Analysis of Factors Restricting Rural Financial Service Innovation
1. The number of outlets of financial institutions has decreased, and the function of rural financial services has weakened. With the reform of state-owned banks and intensive operation, grass-roots financial institutions have abandoned agriculture and fled to the city, resulting in the absence of financial subjects to support agriculture and the sharp contraction of rural financial service front. Still taking a city as an example, banks in this city have cancelled 34 rural outlets in recent years, resulting in a decline in loan convenience and service capacity. However, policy financial institutions only focus on the purchase of grain, cotton and oil, which does not reflect the guiding role of policy financial institutions in agricultural development, nor does it reflect the government's attention to vulnerable industries. There are few financial institutions involved in the construction of agricultural infrastructure.
2. Lack of rural economic development and financial service guarantee function. It is difficult to reconcile the profit seeking nature of financial assets with the weak nature of agriculture. On the one hand, as an independent economic entity, the commercial operation of financial institutions will inevitably lead to the maximum profitability of funds while meeting the security and liquidity. At present, the low level of agricultural industrialization, long production cycle and low added value of agricultural products coexist, which restricts financial institutions to expand credit investment; On the other hand, there is a lack of corresponding agricultural insurance mechanism and necessary risk aversion measures. Agriculture is still a weak industry at present. Agricultural loans are risky and costly, which makes the risks and benefits of agricultural loans asymmetric. The absence of agricultural insurance mechanism and risk aversion measures has affected the power of rural financial institutions to support the rural economy.
3. The coordination of policies and measures is not in place. First, the cooperation between agricultural industrial policies and credit policies is not in place. In support of the new rural construction, the national industrial policies are not implemented in place, and can not effectively play the role of credit leverage, support the good and limit the bad, and promote the sustainable development of the new countryside. Second, the fiscal policy and credit policy are not well coordinated. It is mainly manifested in the absence of the loan subject and the lack of a platform for credit to cooperate with financial input; The credit guarantee and risk guarantee system is incomplete, lacking the necessary guarantee platform; Incentives are not in place, and the role of public finance in guiding credit investment is insufficient.
4. Rural credit environment construction needs to be improved. First, because the current financial system management responsibilities of rural enterprises are not clear, lack of effective management and supervision, and many rural enterprises do not have complete account tables, so that rural financial institutions can not comprehensively and accurately evaluate the risk of loans. Second, the credit information of rural enterprises and individuals has not yet been included in the credit management system, and the relevant information is scattered in the People's Bank of China, industry and commerce, taxation and other departments, which are independent, closed and lack of necessary credit resource integration.
2、 Suggestions on improving the level of rural financial services
（1） Meet the diversified financing needs of rural economy
All financial institutions should change their business methods, select the right entry point, implement the credit policy of supporting agriculture by category, focus on meeting the diversified needs of farmers and small rural enterprises, and strive to comprehensively improve the level of rural financial services in a larger scope and at a higher level. First, we need to adapt to the needs of infrastructure construction, innovate medium - and long-term loan methods, and meet the credit needs of small town construction, agricultural product logistics facilities construction, rural power grid, road network, communication network construction and transformation; Second, to meet the needs of modern agricultural development, we should increase credit input to key leading enterprises, circulation system construction, and characteristic agriculture; Third, we should adapt to the needs of the development of small and medium-sized rural enterprises and small enterprise clusters, expand the scope of farmers' co guaranteed loans, extend the loan period, and seek new methods and measures suitable for farmers' micro credit loans and farmers' co guaranteed loans; Fourth, we should adapt to the changes in farmers' financing needs, and promote urban mature financial products to rural areas.
（2） Improve the effectiveness of rural financial services
First, innovate on service objects. We will continue to provide credit support to farmers and small rural enterprises, and include migrant workers, large farmers of agricultural machinery, large grain growers, agricultural machinery service organizations, farmers' professional cooperatives, and leading enterprises in agricultural industrialization as key support. The second is to innovate in the direction of credit investment. We will increase support for grain production, the "vegetable basket" project, home appliances going to the countryside, agricultural machinery purchase, small town construction, energy conservation and emission reduction, and rural scientific and technological innovation, and comprehensively strengthen credit support for all chains and links of the agricultural industry chain. Third, innovate in the way of loans. Vigorously develop small credit loans, jointly guaranteed loans and bank (cooperative) group loans for farmers who do not need mortgage guarantees, and focus on exploring the credit cooperation service mode of "bank (cooperative)+enterprise+farmer+cooperative (association)+insurance+guarantee". In combination with rural reform, actively explore the rural property mortgage (pledge) system, promote the expansion of the scope of rural collateral, and ease the difficulty of rural mortgage guarantee.
（3） Promote the continuous improvement of rural financial ecological environment
The People's Bank of China should actively coordinate with local governments to strengthen the supervision of financial institutions in rural financial ecological environment construction in combination with the construction of financial ecological environment. First, accelerate the construction of credit system for small enterprises and farmers. Accelerate the construction of rural credit reporting system and guide rural financial institutions to develop credit loans. In view of the reality of asymmetric information in the rural financial market and farmers' lack of collateral, we should speed up the construction of the rural credit reporting system, guide rural financial institutions to pay attention to collecting farmers' reputation, moral quality and other information, establish farmers' credit files and credit databases, and promote the continuous improvement of the rural financial ecological environment. The second is to promote the establishment and improvement of the rural credit guarantee system, and ease the problem of farmers' loan mortgage and guarantee. It is suggested that each county should set up at least one guarantee company to serve "agriculture, rural areas and farmers" to jointly guarantee small and medium-sized enterprises and farmers, so as to enhance the guarantee strength.
