What should China draw from the financial crisis

-Xu Hong just now, a century-old Wall Street "financial tsunami" is pounding the global financial system, and the top five Wall Street investment banks, which have made a big impact in global capital markets, have been "annihilated". There is no doubt that America's combined financial strength has been battered.　　In the light of this catastrophe, it is not difficult to draw the following conclusions. First, about the nature of the crisis. The essence of this Wall Street financial crisis is the dollar crisis. On the face of it, the crisis was caused by subprime debt, it seems that the US has a "technical" problem in financial innovation, which in essence reflects the inherent contradictions of the dollar as a world currency, and further suggests that the United States is unsustainable in supporting the US over consumption and the global financial economy by spamming the dollar "paper tigers".　　, is also extremely unreasonable. Second, the cause of the crisis.　　In this crisis, US commercial banks to the "toxic" financial assets through investment banks to the various investors in the capital market, so the direct impact of commercial banks is less, but we can not think of commercial banks than investment banks smarter, commercial banks will replace investment banks, in fact, the two are only different roles. Third, the prospects for the crisis. At the disposal of the crisis, the US Treasury took a large dose of liquidity, apparently passing the crisis and exacerbating the global liquidity pandemic.　　At present, the United States has begun to address the excessive "leverage" of investment banks, poor financing channels and lax regulation, the United States investment Bank may be reborn, rebirth, and new posture to return to the international financial arena.　　What lessons should China learn in the face of this catastrophe? First, top policymakers in China's financial sector should abandon the blind worship of Wall Street in the United States. The author has always advocated that the fundamental and key of China's financial development lies in "keeping fit" and taking an independent road of development to prevent the repetition of the "pull and beautification" mistakes.　　Therefore, China should thoroughly implement the principle of "independence" and "initiative, gradual and controllable" in the process of financial reform and opening-up. Second, to establish and improve the accountability mechanism for major economic strategic decisions, to immediately proceed with the restructuring of the portfolio of foreign exchange reserves and economic restructuring, to use some of US dollar assets for the construction of social security system for the common people and the cause of science and education, and to change the economic structure of over-reliance on external demand　　Unswervingly take the road of developing national economy relying on domestic demand. Third, we must not be unworthy, China should accelerate the pace of financial innovation on the basis of strengthening supervision. The problem in America is that financial innovation is "excessive" and China's problem is that financial innovation is "inadequate". In fact, this subprime crisis in the United States has provided a good source of learning for our next step in developing asset securitization and other innovative financial services.　　If China therefore stops or postpones the pace of financial innovation, the rise of the Chinese nation will be far from the future. (from the new book "Major financial strategies----China's financial power strategy and direction")