The year 2021 of the financial market has come to a successful end.
In this year, structural adjustment and steady growth, a series of reform measures were implemented, and market innovation burst out.
This year, the policy “opened the way” for the development of the real economy, and the sense of gain of market players has been continuously strengthened.
This year, the performance of the financial market may have twists and turns, but it eventually turned sunny to warm.
Looking back this year, at least 10 pictures of financial markets will be imprinted on our minds for a long time. The story behind these 10 pictures will affect or change the development of financial markets in 2021 and even in the future.
If you keep going, you can expect the future. What will be the economic and financial trend in 2022? Let’s witness it together.
Key words: focus on me
The prudent monetary policy is flexible, accurate, reasonable and appropriate
Steady word first, give priority to me. China’s monetary policy in 2021 shows confidence and resilience.
The prudent monetary policy is flexible, accurate, reasonable and appropriate. In this year, the central bank flexibly used tools such as open market operation and medium-term lending facilities to maintain reasonable and abundant liquidity – the annual average dr007 was 2.17%, which deviated only 3 basis points from the interest rate of 7-day reverse repo in the open market; In July and December 2021, two comprehensive RRR reductions were implemented to pave the way for the sustainable stability of the real economy
Monetary policy has taken many measures to “reduce costs” for the real economy. In the first 11 months of 2021, the enterprise loan interest rate was 4.61%, a year-on-year decrease of 0.11 percentage points. This year, the interest rate of small loans for agriculture was lowered again, and the LPR interest rate was lowered by 5 basis points every 20 months
The recently held working conference of the people’s Bank of China in 2022 set the tone of monetary policy work in 2022 with “prudent monetary policy should be flexible and appropriate”. In a recent interview with Xinhua news agency, Yi Gang, President of the people’s Bank of China, said that in 2022, the people’s Bank of China will further enhance the ability of financial services to the real economy.
Key words: let benefit the people
Financial reform fee reduction and profit transfer
Consumers and small and micro enterprises are satisfied
In 2021, the reform of financial management departments and the reduction of fees and profits of financial institutions will make consumers and small and micro enterprises feel full.
In the first 10 months of 2021, the loan cost continued to decline, and the banking industry continued to make profits to the real economy. The annualized interest rate of inclusive small and micro enterprise loans was 5.7%, down 0.17 percentage points from the beginning of 2021; The annualized interest rate of private enterprise loans was 5.32%, down 0.03 percentage points from the beginning of 2021.
In 2021, many departments issued 12 measures to reduce the payment fees of small and micro enterprises and individual industrial and commercial households, focusing on the basic payment services with high voice and high frequency of use, so as to restore the vitality and enhance the vitality of market players.
After the implementation of these measures, it is estimated that the handling fee expenditure will be reduced by 24 billion yuan for market subjects and the public every year, of which more than 16 billion yuan will benefit small and micro enterprises and individual industrial and commercial households, which will help to reduce capital circulation costs, further optimize the business environment and promote consumption quality and capacity expansion.
Auto insurance concerns the vital interests of hundreds of millions of car owners. In September 2020, the cbcirc promoted the implementation of comprehensive auto insurance reform, covering the fields of compulsory transportation insurance, commercial auto insurance and new energy auto insurance. It is estimated that since the reform, the accumulated expenditure for auto insurance consumers has been reduced by more than 200 billion yuan.
Key words: independent market
Under the action of multiple factors
RMB out of independent market
The “independent market” of RMB is a hot word in the foreign exchange market in 2021.
Since the end of September 2021, the RMB exchange rate against the US dollar and the US dollar index have shown a rare upward trend. In late November, after the US dollar index rose above the 96 mark, the RMB exchange rate against the US dollar stood strongly above the 6.40 mark, which was significantly differentiated from the trend of other emerging market currencies.
Why does RMB go out of the independent market? People in the industry believe that the sustained high interest rate of China’s foreign investment and foreign trade is an important driving force for China’s sustained growth of RMB assets.
This year, the two-way fluctuation trend of RMB was obvious. In particular, in late May and early December 2021, the RMB appreciated rapidly twice, and unilateral betting showed signs. In the face of market irrational expectations, the financial management department strengthened the guidance of expectations, emphasized the concept of “risk neutrality”, and promoted the RMB to return to the basic stability at a reasonable and balanced level.
Looking forward to 2022, will the independent market of RMB continue? Industry insiders believe that the rigid demand for foreign exchange settlement at the end of the year and the beginning of the year will still support the RMB to remain stable and strong in the short term. However, in the long run, the RMB will operate near a reasonable equilibrium level.
Key words: spring flowers bloom
The cloud of credit bond market dispersed
The opening of the bond market into the fast lane
In 2021, China’s bond market will walk out of a wave of twists and turns, and finally “spring flowers bloom” in the calf market.
At the beginning of 2021, affected by the Yongmei bond default event in November 2020, the credit bond market shrouded in a cloud. As some enterprises defaulted on supermarket expectations, the fear of the bond market spread, causing the credit bonds of the same industry and weakly qualified state-owned enterprises to be sold off.
In the face of the risk situation in the credit bond market, the relevant central and local departments took action in time. On February 28, 2021, the state owned assets supervision and Administration Commission of the State Council issued a notice to urge and guide local state-owned enterprises to carry out debt financing and risk disposal, strive to maintain the good market reputation of state-owned enterprises and the stability of the financial market, and shall not maliciously evade or abolish debts.
On April 30, 2021, the Political Bureau of the CPC Central Committee held a meeting. The meeting stressed the need to prevent and resolve economic and financial risks and establish a financial and financial risk disposal mechanism in charge of the main leaders of local party and government.
After the storm, market confidence was gradually restored. In 2021, the liquidity of the financial market remained reasonably abundant, and the bond market as a whole walked out of a wave of calf market.
In 2021, China’s bond market entered the fast lane of opening to the outside world – on September 24, the “South Link” of bond link was officially opened, and the “bond link” was opened to traffic in both directions; At the end of October 2021, FTSE Russell officially included Chinese treasury bonds in the FTSE world treasury bond index.
Key words: swagger
Important breakthroughs have been made in green finance
Contribute to the realization of the “double carbon” goal
In 2021, green finance made important breakthroughs in standard setting, incentive and restraint, product innovation and information disclosure.
In terms of green finance standard system, many departments have issued the catalogue of green bond support projects (2021 Edition) to unify the definition standards of China’s green bonds; The guidelines for environmental information disclosure of financial institutions and environmental equity financing instruments were issued
In terms of green financial markets and products, by the end of the third quarter of 2021, the balance of green loans was close to 15 trillion yuan and the balance of green bonds exceeded 1 trillion yuan. Green credit, green bond stock scale and annual new issuance scale rank among the top in the world. Carbon neutral bonds, sustainable development linked bonds and other innovative financial products are available
The incentive and restraint mechanism was further improved, and the financial management department guided financial institutions to increase their support for green and low-carbon projects. In 2021, the central bank launched carbon emission reduction support tools and special refinancing to support clean and efficient utilization of coal; Revise and issue the green finance evaluation scheme for banking financial institutions, expand the scope of quantitative evaluation to green loans and green bonds, and reserve space for green financial management, green trust and other businesses.
In the development of green finance, environmental information disclosure has been continuously strengthened. The central bank guided financial institutions in the green financial reform and innovation pilot zone to prepare environmental information disclosure reports, explore carbon accounting, and organized some commercial banks to carry out climate risk stress tests.
Key words: reform tide
Special bond issuance, merger and reorganization, reform of rural credit cooperatives
The reform of small and medium-sized banks is staged frequently
In 2021, the reform of small and medium-sized banks will be staged frequently.
In September 2021, the issuance of special bonds of small and medium-sized banks was completed, and the final issuance scale was 206.4 billion yuan. More than 200 billion yuan of funds were injected into 310 small and medium-sized banks in 20 provinces through share transfer agreement deposits and indirect shares of financial holding companies.
The wave of merger and reorganization of small and medium-sized banks is surging. In May and June 2021, Bank of Shanxi and Bank of Liaoning and Shenyang opened successively after merger and reorganization; In October, Zhongyuan bank announced that it planned to absorb and merge Luoyang bank, Pingdingshan bank and Jiaozuo China Travel bank.
The reform of rural credit cooperatives is also the highlight of the reform of financial institutions in 2021. From the public information, since 2021, at least more than 10 rural commercial banks restructured from rural credit cooperatives have been approved to prepare for construction or start business. The core of this reform is to straighten out the relationship between the provincial Associated Press and the banks and societies under its jurisdiction, and improve the risk prevention of the rural credit system.
Key words: establishing the new and clearing the old
The transition period of the new regulations on asset management ends one year
Full sprint of bank financial management rectification
2021 is the last year of the transition period of the new asset management regulations. Innovation goes hand in hand with the elimination of the old, and opportunities and challenges coexist.
Looking back on the rectification “sprint” in the closing year:
——Institutional weaknesses were further supplemented. The new regulations on cash management products, the Interim Measures for the sales management of financial products and the measures for the liquidity risk management of financial products were officially released, the relevant accounting treatment regulations on asset management products were publicly solicited for opinions, and the supporting policies of bank financial management were closely linked and unified with the regulatory standards of the asset management industry.
——The effect of net worth transformation is remarkable. By the end of September 2021, the existing scale of the bank financial management market had reached 27.95 trillion yuan, a year-on-year increase of 9.27%; Net worth ratio exceeds 86%. By the end of July 2021, the scale of principal guaranteed financial management and non-conforming short-term products had decreased by more than 98% compared with that when the new asset management regulations were issued.
——The “new forces” continue to rise. Financial management companies have gradually become an important force in deepening the structural reform of the financial supply side. By the end of September 2021, a total of 29 financial management companies had been approved to prepare for construction and 21 had opened, and the product survival scale reached 13.69 trillion yuan. A number of Sino foreign joint venture wealth management companies have opened or raised funds.
——Serving the people’s livelihood and the real economy. By the end of September 2021, the number of investors holding financial products had reached 71.2571 million, and the cumulative cashing income of financial products to investors in the first nine months was 640 billion yuan. The pilot of “four places and four institutions” pension financial products was promoted in an orderly manner. Financial management funds effectively meet the financing needs of the real economy. By the end of September 2021, they had invested 20.45 trillion yuan in bond assets, 3.16 trillion yuan in non standardized creditor’s rights assets, and 1.10 trillion yuan in equity assets such as equity of unlisted enterprises.
Key words: reducing fat and increasing muscle
Continuous and strict supervision
The way for insurance enterprises to eliminate stubborn diseases and innovate
2021 is a year for the insurance industry to reduce fat, increase muscle and strengthen physique.
The regulatory authorities continued to maintain strict supervision and successively issued a number of normative documents; The pressure of insurance companies to overcome stubborn diseases and break new roads coexists.
In 2021, the regulatory authorities issued more than 40 regulations and normative documents related to the insurance industry, which are related to corporate governance, solvency management and the management of chaos in the life insurance market
From the dimensions of strengthening institutional governance, reshaping business norms and stimulating product innovation, the regulatory authorities rectify market chaos, standardize business development, guide product innovation, clarify ideas and remove obstacles for the high-quality development of the industry.
Under the guidance of strong regulatory policies, life insurance companies firmly promoted channel reform in 2021, with more than 2 million Qingxu agents; Continue to standardize the health insurance and internet life insurance business, and strengthen the innovation of pension products. Property insurance companies deepen the comprehensive reform of automobile insurance and effectively benefit consumers; We deepened the transformation of non auto insurance business and continued to increase investment in science and technology.
Key words: eliminating the false and preserving the true
The chaos of virtual currency was rectified
Accelerating the pilot promotion and application of digital RMB
In 2021, the “demons and monsters” of the virtual digital money market were once popular. The speculation and illegal financial acts in the field of virtual digital currency have seriously endangered the property safety of the people.
For this situation, the financial management department took action in time and resolutely cracked down on it. On September 24, 2021, the central bank and other ten departments issued the notice on further preventing and dealing with the risk of speculation in virtual currency transactions, emphasizing that it is clear that all businesses related to virtual currency belong to illegal financial activities, which are strictly prohibited and resolutely banned according to law.
Under the heavy blow, the major virtual digital currency trading platforms have announced to leave the Chinese market, the crazy speculation in the market has cooled significantly, and the “mining” behavior of various virtual digital currencies has been comprehensively cleaned up and rectified.
While cleaning up “demons and monsters”, the real digital currency – Digital RMB R & D pilot has been steadily and orderly promoted and applied in many cities and all scenes across the country.
As of October 22, 2021, 140 million digital RMB personal wallets and 10 million corporate wallets have been opened nationwide, with a cumulative number of transactions reaching 150 million and a transaction volume of nearly 62 billion yuan.
Key words: calm
Experience ups and downs
Real estate industry financing recovery
In 2021, the real estate industry experienced ups and downs.
Once there was a trough – due to the deviation of some financial institutions in the implementation of housing loan policies, the occurrence of US dollar debt default events of real estate enterprises, and the superposition of individual real estate enterprise risk events, the Chinese dollar debt market fluctuated, and the risk preference of financial institutions for the real estate industry declined.
The correction force appears at the right time. From September 2021, the financial management department will rectify the excessively strict policies implemented in the early stage, release the positive signal of maintaining the stable and healthy development of the real estate market, and guide financial institutions to meet the reasonable credit needs of real estate enterprises and individual buyers.
The recovery of financing in the real estate industry has been more and more confirmed. Recently, the pace of bond financing of real estate enterprises has significantly accelerated, and a number of real estate enterprises announced to start issuing medium-term notes, supply chain ABS, etc. Meanwhile, in November 2021, on the basis of the sharp recovery in October, the real estate loan continued to maintain the trend of double increase month on month and year-on-year, and the financing behavior of financial institutions to real estate enterprises returned to normal.
The recently held working conference of the people’s Bank of China in 2022 requires that the prudent management system of real estate finance be steadily implemented to better meet the reasonable housing needs of buyers and promote the virtuous circle and healthy development of the real estate industry.
Rectifying deviation is not equal to the change of policy tone. Zhang Ming, deputy director of the Institute of finance of the Chinese Academy of Social Sciences, said that China will continue to implement the policy of “no speculation in real estate” to curb the demand for real estate speculation, but will also appropriately adjust some of the overly strict regulatory measures taken some time ago.
(Shanghai Securities News)
