2005 Key Year of Financial Reform, Development and Reform Commission Launches Research on Financial Risk Prevention

    A project entitled "China's financial system reform and financial risk prevention" was formally established. The topic was led by the National Institute of Development and Reform Commission's Institute of Economic System and Management, which aims to study how to prevent financial risks through financial system reform. Its scope involves many aspects such as banking, securities, and derivatives.

    Dr. Zhang Haiyu, the project leader and researcher of the Institute of Structural Reform of the National Development and Reform Commission, said in an exclusive interview with this reporter that “2005 is a crucial year for China’s financial system reform. Facing the full opening of the financial industry next year, the Chinese financial industry seems to There are such 'stories' in each area, and the losses caused by these 'story' are frequently tens of millions or billions of dollars. It is shocking."

    Zhang Haiyu said that these fully demonstrate that there are many problems in China's financial system and imply huge financial risks. The main content of the research is how to prevent financial risks through financial system reforms. The scope of these issues involves banks, securities, and derivatives. And many other aspects.

    Regarding the importance of this research topic, Zhang Haiyu stated that the financial industry is an industry with risk management. Finance itself has its normal risks, but the outstanding problem now is not technical risk prevention, but how to avoid institutional risks. Reform and improve the systemic risk prevention system. "How should the reform of the financial system go? I think the first step is to solve the risks in the financial sector and establish a better financial risk prevention system. This should be the main objective of the reform, followed by improving efficiency and so on."

    This topic will start with five aspects. First, it will systematically study the relationship between China's financial system and risk prevention. Then it will study the risk prevention in the three markets of banks, securities, and futures respectively. The last part is risk supervision. A number of researchers from financial regulatory agencies and 14 researchers including Harvard and Yale University will participate in the project.

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