Zhou xiaochuan: China capital market excellent development potential

Xinhua News, Zhou xiaochuan, Governor of the 1 day held in Beijing, "the World Federation of exchanges developing markets Forum", said that with the deepening of the financial reform, China capital market excellent development potential.

In this forum luncheon, Zhou xiaochuan, "China's financial reform and on the impact of China's financial markets" published a keynote speech. Xiaochuan, as the development of emerging markets, China's capital market in a relatively short period of time has made great achievements. Although there are a lot of problems and difficulties, but with the constant deepening of financial reform, China capital market with excellent growth potential and opportunities, prospects are bright.

Xiaochuan, China's macroeconomic to the continuous development of the whole of society on the capital market investment demand to grow quickly. On the one hand, in recent years, China's GDP growth has been maintained at 9% of such a higher level. Rapid economic growth, making the residents, businesses and departments of revenue growth, which means more money for consumption and investment. On the other hand, China's economy is characterized by a high savings rate, over the past few years has been accounted for 45% of GDP. This means that there are a lot of capital for investment. Zhou xiaochuan, ROI relies heavily on the capital market and in particular the development of the stock market. Whether in the form of a valid funding resources, and global investment opportunities, to develop a policy of open capital markets is critical.

Zhou xiaochuan, China high savings rate and the financial system is relatively good trend, resulting in broad money GDP ratio on a high, equivalent to the GDP of 1.9 times. Due to the capital market in China is the new things that ordinary people are not too familiar with this kind of investment that is still used in more than money in commercial banks will, only about 15% of the savings bank or other intermediaries invest in stocks, bonds market. The rapid development of information industry greatly improve production efficiency, reduce inventory, also allows enterprises to reduce working capital needs. These all lead to commercial banks in the hands of the money is piling up. Therefore, the study through effective ways to make these funds for effective investment, in particular the medium-and long-term use of these funds for the further development of capital markets, development of stock market means a big opportunity.

Zhou xiaochuan pointed out that the protection of the rights and interests of the shareholders of listed companies, information disclosure, corporate governance, and so there are a lot of weaknesses that need to be improved. It also should see China capital market development advantages and great potential to meet this huge investment needs. First of all, China is a huge market for listed companies profits increase provides better market conditions, the strong growth in foreign trade has been maintained, the listed companies to provide broad access to global markets and ways and means. Secondly, a lower labor cost to public companies provide good profit opportunities. As the company's shareholding and the rapid development of small and medium sized enterprises, will have more and more companies enter the capital market and bond market. And growing high-tech companies, but also on the development of venture capital mechanism and marketing platform, as well as access to capital markets have a strong requirement. PBC, should provide policy support and the necessary facilities to develop and grow the strength of the Chinese financial institutions to enable them to better serve the market should be good at understanding service; the transition economy, emerging markets, encourage competition, increase market efficiency; should continue to develop institutional investors, as the exchange rate of RMB to the capital account convertibility to evolve, the introduction of more foreign institutional investors; should adopt and foreign exchange, cooperation and communication, promote exchange management level.