Why should restrictions on foreign banking and insurance equity be opened?
Recently, China has opened up restrictions on foreign banks and insurance shares. Foreign banks, foreign insurance companies, and foreign securities can come to China to set up wholly-owned companies and participate in equity mergers and acquisitions.
Many people are very worried that finance is the foundation of the country's economic security, so how can we say that if we allow foreign capital to enter China's banking, insurance, securities, and other industries, will it bring additional financial risks? Why should we open up finance?
The captain first said the conclusion: I personally, raise my hands in favor and support 100%!
In this matter, it is not foreign capital that is as fierce as a tiger, but domestic capital as a wolf and a tiger. It is not foreign capital that is really lying on China's economy and sucking blood, but precisely domestic capital. This competitive advantage does not come from the market competitiveness of domestic banks, securities and insurance companies, but from financial protectionism. This kind of financial protectionism is basically a hotbed of corruption, and it can even engage in fraud and cut leeks in the name of legality.
When foreign capital enters the market, it must first establish rules. The money of foreign capital is not blown by the wind. When people come, the first thing is to ensure the safety of funds, and the second is to play fairly. If the rules of the game are not fair, then when people come over, won't they be meat buns beating dogs? As far as we are concerned, opening up foreign capital to enter the market is only the first step, and attracting foreign capital is the second step. This requires us to push ourselves, revise the rules, and make a rule that is fair to all. Otherwise, if you want people to come, they won't come.
It is not us who really has no sense of security, but foreign capital. This is our home field, and foreign capital will accidentally beat the dog with meat buns, and there is no return. You know, India can confiscate Xiaomi's assets at will. We are not as shameless as India, but if the rules themselves are unfair, then foreign capital will also give silver. Those who are worried about China's financial security are still stuck in the late Qing Dynasty, still thinking that "the great powers are as fierce as tigers", and we are little sheep. These people are underestimating China's strength.
Of the top five banks in the world, China occupies four of them, except for JPMorgan Chase Bank of the United States, which ranks third in the world, and the remaining four seats are all covered by the Industrial and Commercial Bank of China, the Construction Bank, the Bank of China, and the Agricultural Bank of China. However, China's banks are big but not strong. The "strength" of China's banks is limited to the domestic market, and they hardly have much influence in the international community. The ones that really have strong international credibility are JPMorgan Chase Bank of the United States, Standard Chartered Bank of Singapore, HSBC Bank of the United Kingdom, Union Bank of Switzerland, Citibank of the United States, etc.
When Chinese banks go abroad, their market competitiveness is very limited. However, in the domestic arena, China's banks are almost invincible, and no foreign capital can beat them.
Why does the captain support 100% of the opening of the financial market to foreign capital? The core is to compete with the strongest opponents first, learn from their international experience, and then fight in the international market.
It's like Huawei, which first played against top rivals such as Ericsson and Nokia in Europe. After defeating Ericsson and Nokia, gaining a foothold in Europe, and then returning to China, Huawei quickly became the world's No. 1 communications group. If it does not compete with the world's top financial institutions, China's finance will always be an infant child. No matter how big you grow, no matter how fat you are, you are still fat, and if you don't experience wind and rain, you can't build strong muscles and bones.
The same is true for insurance and securities. Normally, finance should serve the real industry. This requires that the profits of the financial industry should not be too high. Because financial profits are too high, it will suck a lot of money from the real industry. The boss of the entity worked hard to start a business, and finally worked for a financial company. If the profits are insufficient, the wages of workers will not rise, and the purchase of advanced equipment and investment in technological research and development must be slow.
With the competition of foreign financial institutions, at least everyone has one more choice. If the interest rate of this loan is too high, you can also go to a foreign-funded institution to reduce the financing cost through financial competition. China's financial institutions have been lying to win for too long, and there are no rivals at home. In the three major industries of banking, securities, and insurance, we don't need to name anyone who is monopolizing the market.
Opening up to foreign capital will also open up to private capital. We can't avoid that there will always be people fishing in troubled waters, and there will always be people who are opportunistic, but there will always be people who have the dream of becoming a "financial power". We can't be stopped because we're afraid. Jack Ma is right, the biggest risk is no risk. No risk means that someone is lying down to win. Financial innovation is directly stifled by financial lying to win. How much has a small Alipay changed for China? Just such a small innovation has saved countless Chinese from the trouble of queuing and forced banks to cancel transfer fees.
From a financial power to a financial power, the first step is financial openness. Reluctant to let the child trap the wolf, the real hunter is killed in the jungle, and only giant babies will be cultivated in the greenhouse. At that time, China's rare earth industry was also the first to introduce Western capital. Because there is no self-purification technology, our rare earths are sold as cabbage. On the other hand, it is precisely because of the price of rare earths sold that China was quickly forced to develop rare earth purification technology, establish the world's most complete rare earth purification industry chain, destroy all foreign-funded rare earth companies, and build China's rare earth super battleship.
Why is it that in the field of automobiles, joint ventures cannot defeat independence? Isn't this another kind of lying down to win and stifling independent innovation? There is no need to impose any more restrictions on the share ratio of the financial sector when the financial sector is opened. Restricting equity means joint ventures, which only delay the course of history. Direct Chinese and foreign capital, the beginning of the killing, under the fierce horse racing mechanism, survival of the fittest, will definitely be able to run a thousand miles.
A financial powerhouse, there is no room for compromise.