Rules for the entry of private capital

Han Tingting Private capital into the financial industry to be guided by policy. Yesterday, the State Council issued a "to encourage and guide the healthy development of private investment in a number of views" (hereinafter referred to as "new 36").　　This paper, which aims to further "untie" private capital, proposes that, under the precondition of strengthening effective supervision, promoting normative operation and preventing financial risks, the private capital's stock ratio restriction should be relaxed, and special emphasis should be placed on "allowing private capital to set up financial institutions". A number of respondents said the government is hoping to attract private capital to invest more in the investment space of some monopolistic industries and provide impetus for the domestic economic recovery. However, for a long time, private capital in financial institutions to acquire a controlling power or new financial institutions are facing the regulatory "soft threshold."　　After the policy "untie", it is urgent to introduce the supporting policies of more execution and operation, which provides more explicit market access rules for the private capital to enter the financial industry.　　Driving economic recovery as early as last September, the State Council, in a number of views on furthering SME development, highlighted the role of private capital in strengthening and improving financial services for SMEs.　　On this basis, the "new 36" further clearly proposed that the private capital to set up financial institutions, and strengthen effective supervision, promote standardized management, to prevent financial risks, under the premise of easing the stock ratio restrictions on financial institutions. Zhang Chenghui, deputy director of finance at the Development Research Center of the State Council, said the policy was intended to add impetus to the domestic economic recovery. "At present, apart from monopolistic industries and regulatory areas, other real economic sectors of private capital can be entered, then if there is no more attractive investment areas, private capital may not be willing to increase investment at this time." Yang, deputy director of the Research Institute of Monetary Theory and policy of the Chinese Academy of Social Sciences, said that there was no explicit prohibition on the entry of private capital into the financial sector at the level of laws and regulations, and that the way of participating in finance institutions was also attempted by many private capitals, but it was confronted with invisible barriers　　For example, regulators have a "soft threshold" for private capital to gain control of financial institutions or to establish new financial institutions. "The new 36," the introduction of the government means that private capital access to the financial industry there are signs of openness, but more is a non-operational level of policy, real liberalisation is not a very easy to achieve the process.　　Yang said that the next need for more executive and operational support policies, regulations, such as clearer market access rules, financial sector insolvency exit mechanism and specific support policies.　　Private capital for many years, private capital of the financial industry enthusiasm has not been reduced. Only in Wenzhou, the private capital developed, local civil circulating funds 650 billion to 750 billion yuan, and another 1.2 trillion yuan invested in fixed assets.　　Wenzhou SME Association president Zhou told reporters, into the financial industry is Wenzhou ample private capital of four hot investment areas.　　Although the regulatory authorities have been concerned about private capital for the sake of controlling systemic risk, the "catfish effect" is universally accepted by the industry. The president of a city firm thinks, the bank's supplementary capital has almost entered a "dead end": The demand for refinancing of listed banks is urgent, and the stock market is severely suppressed. "Opening up the financial sector to private investment is definitely good for solving the problem of capital thirst for banks." But Zhang Chenghui that the high risk characteristics of the financial industry have determined that private capital should be more cautious in its opening pace.　　She suggested that breakthroughs could be made in such areas as city firms, small financial institutions such as agricultural firms, new rural financial institutions such as village banks, and peripheral financial services.　　"New 36" part of the main points to encourage and guide private capital into the fields include basic industries and infrastructure, municipal utilities and policy housing construction, social undertakings, financial services, trade and industry, National defense science and technology industries, participate in the reform of state-owned enterprises.　　Basic industries and infrastructure--to encourage private capital participation in transportation, water conservancy projects, power construction, oil and gas construction, telecommunication construction, land remediation and mineral exploration and development.　　Municipal construction field--to encourage private capital to actively participate in the restructuring of municipal public enterprises and institutions, the conditions of municipal public utilities projects can take the market-oriented mode of operation to private capital transfer of property rights or management rights. Financial sector-to encourage private capital to initiate or participate in the establishment of village and township banks, loan companies, rural mutual funds and other financial institutions, to relax the township banks or community banks in the minimum contribution ratio of corporate banks.