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Interview With Former Vice Mayor Zhang Hongyi Of Shenzhen

2020/10/13 12:23:00 338

Vice MayorJoint Stock SystemReformStock MarketHard Work

The year 2020 marks the 40th anniversary of the establishment of Shenzhen Special Economic Zone, and is also a key year for the construction of Guangdong, Hong Kong and Macao Bay area and the construction of the first demonstration area of socialism with Chinese characteristics in Shenzhen.

On the evening of October 11, the general office of the CPC Central Committee and the general office of the State Council issued the comprehensive reform pilot implementation plan for Shenzhen to build socialism with Chinese characteristics pilot demonstration zone (2020-2025), giving Shenzhen more autonomy in the reform of key areas and key links, including supporting the first trial in capital market construction and improving the labor mobility system adapted to the characteristics of megacities Degree and other aspects.

Taking the 40th anniversary of the establishment of the special economic zone as an opportunity, and under the top-level design and strategic deployment of the central government's reform, it is another major measure to promote Shenzhen's reform and opening-up in the new era, and a key measure to build a leading demonstration zone of socialism with Chinese characteristics.

Looking back on the past 40 years, Shenzhen, as the "vanguard" of reform and opening up, has developed from a frontier fishing village to an independent capital of economic, trade and technological innovation. Behind the transformation of Shenzhen City, we can not do without the foresight and dedication of a group of people.

Zhang Hongyi, an important decision maker of Shenzhen capital market reform, is one of them. He took up the post of vice mayor of Shenzhen since July 1986. Before that, Zhang Hongyi had worked in Guangzhou Branch and Shenzhen Branch of Bank of China successively, and had rich experience in financial market. He, who is in charge of financial work within the Shenzhen municipal government system, witnessed the "first shot" of financial openness, personally participated in and led the establishment of Shenzhen capital market, and made contributions to the prosperity and development of China's financial market and real economy.

In particular, it is a great challenge for China's stock market to establish a socialist market.

The first shot of China's financial opening up

As a special economic zone adjacent to Hong Kong and Macao, Shenzhen's financial reform and opening up started first in China. Among them, the first foreign bank in January 1982 was the most significant event. In Zhang Hongyi's opinion, the introduction of Nan Shang bank has played a catfish effect on the financial reform and development of Shenzhen. With this, the reform of state-owned specialized banks has also been launched in Shenzhen, which has become an important test ground for China's financial reform. At the end of 1986, as a pilot city of the national joint-stock reform, the first joint-stock commercial bank was born in Shenzhen.

21st century: it is generally believed in the industry that the introduction of Nanyang Bank Shenzhen Branch, the first foreign-funded bank in Shenzhen in 1982, was the first shot of China's financial opening up. How do you evaluate it?

Zhang Hongyi: I agree very much. The central government has decided to set up a special economic zone in Shenzhen, but the central government has given policies and no funds. At the beginning of the establishment of the special economic zone, Shenzhen was poor and backward. In order to change the poverty-stricken and destitute situation as soon as possible, we need to find a way. How to raise sufficient construction and development funds through different channels has become a major issue for the decision makers and builders of the special economic zone.

From May 27 to June 14, 1981, the State Council held a working meeting of Guangdong and Fujian provinces and special economic zones in Beijing. At the meeting, three policies were given to the financial reform and opening-up of the Shenzhen Special Economic Zone: first, monetary policy, which allows Hong Kong dollar to circulate in certain fields except RMB, and at the same time allows Shenzhen to explore the possibility of issuing the currency of the special zone; second, it is allowed to introduce foreign banks on a pilot basis to open up new channels for introducing foreign capital; third, the people's Bank of China and the people's Bank of China are allowed to increase their investment control The support of Shenzhen Special Economic Zone, especially the support of credit funds, also allows Shenzhen to reserve the income from land sales for development.

Under the guidance of the policy, in July 1981, the head office of the people's Bank of China and the Shenzhen municipal government selected Nanyang Commercial Bank as the first pilot bank to introduce foreign banks. On January 9, 1982, the Shenzhen Branch of Nanyang Commercial Bank opened its business in Luohu overseas Chinese mansion. I think its opening is a very important historical event, which has opened a new page of financial reform and opening up in Shenzhen Special Economic Zone. After the southern merchants came in, in addition to introducing the capital and customer information we needed, they also introduced new financial products, or different financial services, and introduced the competition mechanism of the financial market, which played a better role in the catfish effect and stirred up the waves of the original still water in Shenzhen.

I think it plays a very important role in these three points

First, the introduction of foreign banks has promoted the gradual adjustment of China's foreign exchange management system, which is very important, because our country was a planned economy country before this, and foreign exchange management was very strict. In order to survive, play a role and develop, foreign banks have put forward some requirements to promote the gradual adjustment of our foreign exchange management system.

Secondly, after the entry of the southern merchants, the situation that the foreign exchange operation and management business of the Shenzhen Branch of the Bank of China dominated the whole country was broken. At that time, as the president of the Shenzhen Branch of the Bank of China, I felt this kind of competitive pressure and urged us to improve our financial services, increase financial products and improve our ability to serve the construction of special economic zones.

Third, since nanshang was the first foreign bank to be introduced after the founding of new China, the series of discussions and practices before and after its introduction provided first-hand practical experience for the head office of the people's Bank of China to sum up experiences and lessons and formulate policies for China's further financial opening and reform. Therefore, I think that the introduction of Southern businessmen into Shenzhen has not only effectively promoted the development of Shenzhen Special Economic Zone, but also made an important contribution to the start of China's financial reform and opening up.

Three new financial institutions and two major explorations

21st century: after the introduction of Nan Shang bank, Shenzhen's financial industry has developed rapidly, and Shenzhen development, the first regional joint-stock commercial bank, has been born. Can you give us a detailed introduction to the background of its establishment?

Zhang Hongyi: we must talk about the changes in 1984. In January 1984, Deng xiaoping visited the south for the first time. He did not make a speech. However, he wrote an inscription for Shenzhen. The development and experience of Shenzhen have proved that our policy of setting up a special economic zone on a trial basis is correct. Therefore, he further strengthened the confidence of the builders of the Special Economic Zone in deepening reform and opening up, and also calmed the domestic debate on whether or not to model the special economic zone 。 Secondly, in May 1984, the state decided to further open 14 coastal open cities, making the reform and opening up break through the scope of the original four special economic zones and germinate on a broader land. Third, the State Council issued a very important document. In May 1984, the State Council issued the "Reply of the State Council on the reform of the banking system in Shenzhen". This is a document recognized by the state after repeated communication and consultation between the Shenzhen Municipal Party committee and the municipal government and the head office of the people's Bank of China. Only with this document was the establishment of the Shenzhen Branch of the people's Bank of China in that year In addition, it creates conditions for the central bank to play a better role in the management of the SEZ and other branches in the development of the SEZ. It was also under the guidance of this document that the head office of the Bank of China implemented the overseas bank management system for the Shenzhen Branch of the Bank of China, and granted the Shenzhen Branch a relatively large degree of operation and management freedom, which made the people's Bank of China and the Bank of China, the two financial institutions in Shenzhen at that time, had the courage and right to boldly carry out the reform and opening-up test.

Under the guidance of the document, the decision of the people's Bank of China to independently perform the functions of the central bank has promoted the separate establishment and independent operation of industrial and Commercial Bank of China, Agricultural Bank of China and Construction Bank of China. As a result, Shenzhen has formed a new financial system with the people's Bank of China as the center, four professional banks and the people's Insurance Company as the main body, and a variety of financial institutions coexist. On this basis, we need further reform actions. We should also refer to the practice of the international market and explore the establishment of some local financial institutions or the establishment of some financial institutions by enterprises.

At that time, there were two aspects of exploration. One was the exploration of financial reform by enterprises led by China Merchants Shekou Industrial Zone, because China Merchants Group is a state-owned enterprise that has existed in Hong Kong for many years. With the authorization of the central government, China Merchants Group took the lead in launching the first shot of China's reform and opening up and carried out the construction of Shekou industrial zone. In the process of developing Shekou Industrial Zone, they deeply feel the necessity and importance of developing finance. Therefore, actively explore the establishment of banks and insurance companies.

About April 1987, after the communication and coordination of Comrade Yuan Geng, the head office of the people's Bank of China approved the establishment of China Merchants Bank in Shekou. Then, in 1988, through various efforts, Shenzhen Branch of ICBC and Shekou Industrial Zone of China Merchants Group jointly prepared to build Ping An insurance company. The state-owned enterprises as the main body and the two joint-stock financial enterprises cooperating with financial institutions were in Shenzhen It's a pioneer to start a business in Shenzhen.

Another (exploration) is that the municipal government plays a more active role in promoting the establishment and development of local financial institutions. At that time, Comrade Li Hao, as secretary of the Shenzhen Municipal Party committee and mayor, proposed to study the establishment of a regional joint-stock bank in Shenzhen. As the vice mayor in charge of financial work, I discussed with my colleagues and the governor of the people's Bank of China to establish a joint-stock regional bank in Shenzhen with the help of the rural credit cooperatives affiliated to Agricultural Bank of China, and reached a consensus with the municipal government, the people's Bank of China and the local branches of Agricultural Bank of China. However, I encountered difficulties in applying for approval from Beijing.

To this end, Comrade Li Hao and Comrade Luo Xianrong (then president of Shenzhen Branch of the people's Bank of China) went to the head office of the people's Bank of China to do work, but still failed to reach a consensus. Later, he suggested that the people's Bank of China should send a working group to Shenzhen to conduct an investigation, and we should jointly explore possible solutions.

Until the beginning of 1987, the investigation team headed by Qiu Qing, vice president of the people's Bank of China, came to Shenzhen. I conducted research and discussion with the Shenzhen municipal government, the local people's Bank of China and the Agricultural Bank of China, and formed three consensus points.

Firstly, it is necessary to establish a regional joint-stock bank in Shenzhen; secondly, there are 21 institutions in Shenzhen rural credit cooperatives, which can be based on the six branches of rural credit cooperatives affiliated to Agricultural Bank of Shenzhen in the special zone; thirdly, the name of this bank can not appear the words of rural cooperation. As for the name, it is up to the Shenzhen Municipal People's government to put forward suggestions. Since the Development Bank of Singapore has played a very active and more important role in the successful development of Singapore, Shenzhen proposed to name it Shenzhen Development Bank. This proposal was approved by the head office of the people's Bank of China, and Shenzhen Development Bank was officially established in December 1987.

The establishment of Shenzhen development is difficult, and the demonstration effect is also great. Since its establishment borrowed the essence of rural credit cooperatives, which have both collective shares and individual shares, Shenzhen Development Bank is the first joint-stock bank to allow collective and individual investment.

After the establishment of SDB, it developed well. At that time, Mr. Liu Zhiqiang served as the chairman of the board. In 1990, its vitality and vitality as a joint-stock bank had begun to show. It had better dividends and dividends. It also adopted technical means to split up the shares, which played a role in activating the silent securities market in Shenzhen at that time. Moreover, Shenzhen Development Bank is the first bank to issue RMB and foreign exchange preferred shares at the same time. It has left a deep brand in the history of China's financial reform and opening up and the history of China's securities market development.

The course of stock market reform

21st century: why can Shenzhen take the lead in the reform of shareholding system?

Zhang Hongyi: why is Shenzhen so keen on the reform of the shareholding system and can it take the lead in launching it? I think this should have a lot to do with the situation and tasks we were facing at that time, because we were poor and destitute, and the task of exploring a new road to development was arduous. At that time, we had to engage in both internal and external links, and to open up the dull situation through two-way opening up. But by what?

Because many of the enterprises themselves are joint ventures and have a share-holding basis. If we want to do a good job in attracting large domestic enterprises or cooperating with foreign investors, we must have local enterprises as the foundation. As a liaison, we are a special socialist economic zone, and we have to maintain the dominant position of the state-owned economy. Therefore, we need to be bigger and stronger There is an important mission of the enterprise.

However, at that time, our local state-owned enterprises were very backward, and there were a lot of internal and external enterprises, which developed rapidly, and the individual economy also developed rapidly. Therefore, how to promote the development of state-owned enterprises and promote the development of more mixed ownership components was our priority topic.

Therefore, our share-holding system reform began to be implemented by issuing documents in October 1986, and on July 22, 1987, Shenzhen investment management company was established. This was an important attempt to explore and strengthen the operation and management of municipal and district owned state-owned enterprises. What are our reform ideas? As a matter of fact, Shenzhen investment management company is now the SASAC. We took a step forward. The idea at that time was to explore the separation of government functions and enterprise management functions. The second is the separation of ownership and management rights. Through such reform, we can promote our state-owned enterprises to gradually explore the mode of modern enterprise development and speed up the pace of development, which is what I want to talk about the reform of shareholding system.

With the development of joint-stock reform, there is a problem: how to circulate the shares of joint-stock enterprises? We need the securities market and financial services, but our traditional commercial bank services can not meet the requirements of joint-stock enterprises, so we hope to create a direct investment market.

After about four months of deliberation, on November 19, 1988, the Shenzhen municipal government formed the "notice on the establishment of the Shenzhen capital market leading group". I was the leader of the leading group. Wang Xiyi, the then vice president of the people's Bank of China, and Dong Guoliang, the general manager of the investment management company, served as the Deputy group leaders. There were also 11 deputies from relevant departments serving as members of the leading group To coordinate the establishment of securities market.

Under the Unified overall planning and coordination, the people's Bank of China, the investment management company, the Restructuring Office, the Economic Development Bureau, the TDC and other relevant functional departments have played their respective roles in promoting the gradual deepening of this reform.

"Not a little bit of difficulty, but a lot of difficulties."

21st century: what difficulties have been encountered in the process of establishing capital market in Shenzhen and how to solve them?

Zhang Hongyi: in fact, the reform of the shareholding system and the establishment of the securities market are particularly complex and arduous challenges. They are not a little difficult, but many difficulties, because they are a stepping stone for China to move from a planned economy to a socialist market economy, and a crucial battle. Whether the reform can be successful or not will have an impact on making it clear in 1992 that the socialist market economy is the main goal of China's economic system reform.

In my decades of career, I have encountered the most difficulties and challenges in the process of establishing the securities market.

There are mainly the following:

First, for quite a long time after the founding of the people's Republic of China, we believed that the securities market was exclusive to capitalism, and that the use of the capital market to speed up the construction of socialism belonged to the forbidden zone. No one dared to study it, and no one wanted to study it. Therefore, in the process of promoting the development of the special zone, we should first do a feasibility study. After the establishment of the capital market leading group, we immediately took two measures. Only then did I dare to be the leader of the capital market leading group. One is to hire Sun Hung Kai Securities Co., Ltd. as the consultant of our capital market leading group, and ask them to introduce relevant information to us and help us train some business personnel. Second, we have drawn some elites from relevant financial units to form an expert group to conduct feasibility analysis to see what the capital market is? What should be the social attribute? Can we promote the advantages and eliminate the disadvantages, so as to speed up China's socialist modernization construction. Until August 1989, the expert group produced the blue book of the feasibility study report, and in September the leading group of the securities market discussed and approved the blue book. On November 15, 1989, the municipal government officially agreed to prepare for the establishment of Shenzhen Stock Exchange and appointed two comrades, Wang Jian and Yu guogang, as responsible persons.

The second big problem is that in 1990, there was a debate over whether to set up a special economic zone, whether to run a stock market as a society or as a capital, and whether the pilot stock markets in Shenzhen and Shanghai should continue. It should be said that there is pressure on the Shenzhen Municipal Party committee and government, especially on the leading group of the securities market. How can we correctly understand these problems, actively do a good job in communication and coordination, and continue the reform, we need to do a lot of work.

We all know that there were three investigation groups in Shenzhen during this period. The first group was a joint expert investigation group led by Liu Hongru, deputy director of the State Commission for restructuring and reform of the people's Bank of China and the State Administration of foreign exchange. They came in May because we applied for the establishment of the stock exchange. They came to see if we were qualified enough and guided us to create conditions to run the stock exchange well.

The second investigation group was in July 1990. Due to the overheating of Shenzhen stock market from March to June, OTC trading was very active. Therefore, according to the instructions of the premier, the leaders of the State Audit Office led a team together with the people's Bank of China to investigate the advantages and disadvantages of Shenzhen securities market.

The third investigation group came to Shenzhen at the end of November and the beginning of December, 1990. At that time, rumors that the state was ready to suspend the Shenzhen and Shanghai stock exchanges were rampant. Later, Comrade Zhou Jiannan, then a member of the CPC Central Committee of the CPC, came to Shenzhen with his Secretary under the entrustment of the general secretary to conduct a serious investigation on the issue of whether to stay in Shenzhen stock market.

After investigation, the three investigation groups have reached a realistic and pertinent opinion. They believe that the Shenzhen stock market has both advantages and disadvantages, and it is in the process of effective rectification. We can continue to test the advantages and eliminate the disadvantages. Therefore, by the end of December 1990, both the CPC Central Committee and the State Council agreed to continue to retain the Shenzhen and Shanghai experiments, so that our reform could continue to deepen.

21st century: the establishment of China Securities Regulatory Commission (CSRC) is a representative symbol of unified securities market supervision. After the securities market enters a new stage, how does Shenzhen sum up its experience and continue to deepen its reform?

Zhang Hongyi: the 810 incident has made us have a deeper understanding of the arduousness and complexity of the establishment of China's securities market, and have more incisive pains to respect the market rules and closely integrate with China's national conditions, as well as the actual development and progress of the market. In addition to conscientiously summing up the lessons of the incident, we did our best to do a good job in matters related to the lottery purchase of the subscription form, and seriously investigated and dealt with the relevant personnel who illegally purchased the form, and about 100 people were dealt with. In addition, under the overall coordination of the CSRC, Shenzhen took the lead in establishing the securities regulatory office, actively cooperating with the CSRC in formulating and improving relevant systems and regulations, and studying new and feasible issuance plans.

At that time, China's securities market was mostly retail investors and lack of institutional investors. On October 8, 1992, we promoted the establishment of Shenzhen Tianji investment fund management company, the first fund management company in China. On January 19, 1993, Tianji fund was successfully issued. In October 1992, Shenzhen clearly announced that it would welcome qualified companies from other places to be listed on the Shenzhen Stock Exchange The listed sponsor system provides institutional conditions for promoting the quality of listed companies. On November 20 of that year, as the first off-site company, Hubei Wushang successfully listed on the Shenzhen Stock Exchange.

I think that the success of Shenzhen's joint-stock system reform and the securities market requires special thanks to the great policy of reform and opening up. Otherwise, Shenzhen would not be as it is today.

Second, we are particularly grateful to the Party Central Committee and the State Council for making Shenzhen a testing ground for reform and opening up to the outside world. If there is no such authorization, Shenzhen City may not be able to make so much exploration and practice.

Third, we are particularly grateful to the leaders of the party and the state and the relevant ministries and commissions of the Central Committee for their long-term concern, support and promotion. In fact, Liu Hongru's investigation group, the audit office's investigation group and Zhou Jiannan's investigation group are the embodiment of the Party Central Committee's and State Council's attention to our reform pilot project, which enables us to overcome so many difficulties and move towards a new road of success.

Fourth, Shenzhen's geographical advantage of being adjacent to Hong Kong, Macao and the Pearl River Delta has become an important condition for our successful development. As one of the international financial and trade centers, Hong Kong has contributed a lot to the development of Shenzhen stock market. We are very grateful to Sun Hung Kai securities company for its selfless dedication as the "one dollar consultant" of our capital market leading group, or the Hong Kong Stock Exchange and the Hong Kong Securities Regulatory Commission for their support from Shenzhen municipal government, the people's Bank of China, the Restructuring Office and the Shenzhen Stock Exchange during our preparations. With the start of the construction of Guangdong Hong Kong Macao Bay area, we have Qianhai high-end service industry cooperation zone and Shenzhen Hong Kong Science and technology cooperation zone. Our cooperation should be further strengthened and there should be better prospects.

Fifthly, the successive municipal Party committees and municipal governments, especially those in the entrepreneurial formation stage, hold high the banner of reform, opening up and innovation, firmly grasp the opportunities, overcome the challenges, and mobilize the enthusiasm of all parties. Only in this way can we form a good situation of 40 years' sustainable development, and make Shenzhen, a border town, become one of the national central cities and the third largest in China As a financial center city, it has become a city of science and technology innovation in China. I think the strong leadership of the municipal Party committee and government is very important.

Sixth, any success can not be achieved without the workers and managers who have ideals, knowledge and creativity. The success of Shenzhen's joint-stock reform and the securities market embodies the efforts and dedication of many managers and financial restructuring professionals. We should not forget those who have contributed to the development of our country and Guangdong.

 

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