introduction: in recent discussions about the balance of treasure, a lot of support for the balance of treasure officials, scholars are using financial innovation to conceal an important question: balance treasure triggered in the history of the Republic’s largest currency idling; moreover, the interests of the so-called public opinion battle.
to encourage financial innovation, is very important. But the question is, what kind of financial innovation China needs to uphold the principles of what?.
recent discussions about the balance of treasure, a lot of support for the balance of treasure officials, scholars are using financial innovation to conceal an important question: balance treasure triggered in the history of the Republic’s largest currency idling; moreover, the interests of the so-called public opinion battle.
the financial support of the Internet, but firmly opposed to "innovation", "Internet banking" under the name of the currency idling. The day before, Premier Li Keqiang in the government work report made it clear: to promote the healthy development of Internet banking, improve financial supervision and coordination mechanism. Of particular note is the two word health, he refers to the Internet banking must be in the regulatory framework of ‘healthy’ development". Why should emphasize "health", emphasize "regulation"? The author thinks that, because of the loss of Internet banking supervision is easy to financial self loop crooked road.
The purpose of financial innovation in
developed countries is very clear. For example, the NASDAQ (4336.22, -15.91, -0.37%) why? Is to support high growth, represent the future trend of economic development of small and medium-sized enterprises access to capital markets, and improve the good financial environment for the development of American high-tech enterprises. In addition, the NASDAQ is also the first to foster the development of the personal computer market, has played a positive demonstration effect. The same is true of the internet. Is this not a great financial innovation?.
look at the subprime crisis. Due to the self circulation of subprime mortgage derivatives, it eventually led to the collapse of the subprime mortgage bubble. But the United States government, why Greenspan has strongly supported the development of the secondary housing loan market, because the subprime mortgage such a financial innovation, is actually to the poor people to buy a house. After the subprime mortgage derivatives innovation, which is in fact the risk of decentralized housing subprime loans. Through the securitization of subprime mortgage, the risk is dispersed to the investors all over the world; then the derivatives are used to spread the credit risk. The bubble of unsustainable financial self – financing is bound to burst, but it will be paid by investors all over the world. Is the United States more or less?
this is the fact that the way the US led financial innovation is extremely clever, and not aimlessly allow financial (monetary) idle. This is the real ability of China’s financial innovation should learn.
I suggest that the Chinese government should clear the principles of financial innovation in china. The principles and preconditions of China’s financial innovation must focus on "reducing the cost of the real economy