Article collection for the 30th anniversary of reform and opening up

There are always some unforgettable memories in a person's life. When we were young, we always used Paul Korchagin's poems to spur ourselves: "...When you look back on the past, you will not regret for doing nothing." Now it is the 30th anniversary of reform and opening up, and I have also experienced and witnessed the financial reform. . Recalling my experience in participating in the establishment of Jiaxing Financial Market, the past events are vivid in my mind and I feel honored. It can be said that we have all gone through an important journey in our lives and careers at the pace of financial reform.

1. 1984, the turning point of Jiaxing’s financial industry

New China’s finance used to be a highly planned economy model. Before 1984, all bank employees at that time were state cadres. . Finance mainly fulfills the function of national financial cashier, and the national funds are managed in slices. For example, no matter how abundant the bank funds in the west are, it is impossible to lend them to Zhejiang. In other words, funds are not allocated according to market demand, but are cut into pieces and used until the ship reaches the end of the field. Starting from the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China in 1978, our country's economic system reform was like a spring breeze blowing across the country. As the process of reform and opening up continued to deepen, by 1982, the public's call for accelerating the reform of the financial system became increasingly strong. Therefore, it can be said that financial reform complied with the requirements of reform and opening up. In 1983, China's financial industry once again carried out major reforms and established the Industrial and Commercial Bank of China. All industrial and commercial deposit and loan businesses originally handled by the People's Bank of China were placed under the operation of the Industrial and Commercial Bank of China. The People's Bank of China was responsible for the responsibilities of the central bank. In 1984, the People's Bank of Jiaxing assumed full-time duties as a central bank. Since then, the People's Bank of Jiaxing has embarked on a series of financial market reforms.

In April 1986, Jiaxing Financial Market was established in Jiaxing. This is a pioneering work in Jiaxing's financial history, which means that funds can be circulated like commodities. Du Yunchang, the mayor of Jiaxing City at the time, attended the founding ceremony. The initial market was a membership-based institution composed of 2 million yuan invested by major banks in Jiaxing. Although it was called a financial market and the institution had a big name, its content was simple. It was only a short-term position adjustment between banks and was limited to the adjacent areas of Shanghai, Jiangsu and Zhejiang. Fund lending between banks for 1-15 days. But there is no denying its historical achievements. It is the cradle of marketization in Jiaxing's financial industry. Jiaxing is the first region in the country to establish an interbank lending market. At that time, the Jiaxing Financial Market and the Comprehensive Planning Section of the Jiaxing People's Bank of China were co-located, and the main operators were senior retired employees of the bank. But the business they are engaged in is completely new and unprecedented in Jiaxing's banking industry. It can be said that an old bank encounters new business, so everyone operates very cautiously. The transactions at the establishment ceremony were all confirmed a few days ago. The first deputy manager (who had overall responsibility) was Xu Xiaocun. He is a respectable old educated youth who came back from Daxinganling and Daqing branch for more than 10 years. He laid the foundation for the future development of financial markets.

In 1987, I was transferred from the Financial Management Section of the People's Bank of Jiaxing to the Comprehensive Planning Section. In the second year, I worked full-time on fund lending. Gradually, the Jiaxing City Financial Market and Comprehensive Planning Department were decoupled and became an independent department of the People's Bank of China. I worked here for more than 10 years, from 1988 until its successful cancellation in 1999. I participated in the entire process of the development of Jiaxing's financial market. I have worked in fund lending positions, accounting positions and securities trading positions. I have served as the general manager of Jiaxing Financial Market since 1993. During this period, the name of Jiaxing Financial Market has also been changed. In 1989, it was renamed Jiaxing Financing Center, in 1992 it was renamed Jiaxing Financial Market, and in 1994 it was renamed Zhejiang Financing Center. Jiaxing Office. At the same time, there are two brands listed externally: Jiaxing Financial Market Securities Trading Sales Department and Zhejiang Provincial Securities Registration Center Jiaxing Agency. During this period, the national financial market has gone through ups and downs, with mixed reputations, ups and downs, and constant debate over the fate of the market. There have been many thrilling and meaningful stories in our Jiaxing financial market, which I cannot express here.

In the ten years since its establishment, our Jiaxing Financial Market has devoted itself to following its own path and continuously expanded the functions of the market. In addition to fund lending, it has successively introduced businesses such as treasury bond trading, corporate bond public issuance, and securities custody. , the annual financing amount from its establishment to its cancellation in 1998, the cumulative total amount was nearly 100 billion yuan, ranking first among its peers in the province. In 10 years of operation, there has not been a single bad debt, which is one of the few in the country. In terms of agency companies for public issuance of bonds, we have underwritten corporate bonds worth nearly 100 million yuan for more than 10 companies. Likewise, we have not incurred any redemption risk.

2. Jiaxing’s financial market has contributed to Jiaxing’s economic development

Jiaxing’s financial market is the product of financial system reform. It is the center for bank capital circulation, treasury bill transactions and agency corporate bond issuance. The venue is a new field in the financial industry, which consists of three major businesses: financing, securities trading, and securities registration. As mentioned earlier, banks during the planned economy period always operated in accordance with the superior system. However, because financial market business is a new thing, there is no ready-made system or model that can be copied. As the first generation of entrepreneurs, we have formulated a series of management measures such as the "Jiaxing Financial Market Charter", "Internal Management Measures", and "Financial Management Measures" based on actual needs. This ensures that Jiaxing's financial market will not blindly follow the trend in the process of going to the market, and effectively avoid risks when a national credit crisis occurs. Specifically, it has the following three major businesses:

1. Boldly carry out off-site financing business and be at the forefront of financial reform

Fund lending is an emerging product of financial system reform and has Dual risks of policy and operational nature. Since 1984, when funds in the financial industry began to flow across regions, the national interbank lending market became turbulent and fully developed. To a certain extent, it has cleared the bottleneck of capital and promoted the development of China's economy. However, it is undeniable that while invigorating the capital market, it has also brought about some management problems, some of which are even very serious. At that time, in order to borrow funds, financial institutions carried out various publicity and public relations activities, similar to today's trade fairs or customer talks. People traveling on business trips in the name of lending are all over the place, just like the buyers of some companies back then. By 1993, random lending across the country once led to chaos in the money market, triggering inflation and an increase in non-performing funds in banks. High interest rate spreads in some areas in the south (mainly various trust investment companies) caused idleness in some underdeveloped areas in the north. Funds are rushing in, and funds are blindly transferred to the southern coastal areas in various names and by various means. Some serious problems have even occurred, such as interbank lending funds not being deposited in deposit accounts opened by the People's Bank of China. Instead, it directly "flies across the sea" and transfers it to the corporate account, causing great risks. Some banks also link the income from borrowing funds to the interests of small groups and individuals and lend blindly, resulting in heavy losses. The large number of "half-baked" real estate projects in Hainan and other places are the sequelae of that time. There are still tens of billions of bad debt funds across the country, which has become a "historical problem" with Chinese characteristics. In order to rectify the "three chaos" in the financial industry, the central government decided that the Premier of the State Council should also serve as the governor of the People's Bank of China. This shows how seriously the central government attaches importance to this issue.

Our financial market in Jiaxing City should be said to have survived. This is inseparable from our cautious philosophy and the "Confucian mentality" of Jiaxing people. In our work, we not only strictly implement national financial laws and regulations, but also flexibly use market rules, make reasonable use of time differences, regional differences and inter-industry differences in funds, and carry out extensive financial financing business across the country. The amount of financing and comprehensive evaluation have always ranked among the best in the world. Ranked first among peers in the province. We did not follow the trend and engage in chaotic lending, but actively introduced funds to serve Jiaxing's economy and finance. Under the long-term capital shortage in Jiaxing City, we ensured that Jiaxing City, as the country's main grain-producing area, did not make any IOUs in the purchase of agricultural and sideline products. There has not been a single bad debt, thus effectively supporting the economic and financial development of Jiaxing.

I have not forgotten that we did our best, took the trouble to make friends with sincerity, treat people with trust, and maintained close ties with banks and capital markets across the country.

At that time, we could become partners with large markets such as Wuhan, Chongqing, Inner Mongolia, and Xi'an. In Jiaxing in 1988, there were no program-controlled long-distance calls. Making a long-distance call outside the city level required a manual call from the post and telecommunications office and a long wait. Jiaxing is a major market for purchasing agricultural and sideline products, and banks have always been lending banks. Funds are relatively scarce. During the peak season for purchasing agricultural and sideline products, bank funds are tight, and we have invisible pressure and responsibilities. Our work cannot be done step by step, and it seems that it will never be completed.

I have not forgotten the understanding and help that Liu Shuzhen and Liu Xuefang of the Jiaxing People’s Bank Sales Department gave us. At that time, the price of borrowed funds was very high, and the monthly interest rate was around 1.5%, while the interest spread we earned was only about 0.015%. In other words, if the funds could not be received on the same day, it meant that the transaction was a loss. At that time, bank remittances had not yet been "connected between heaven and earth", and remittances had to be made through telegrams at the Post and Telecommunications Bureau. It was the comrades in the sales department who were concerned about our concerns and offered accommodation. We first used the fax of the telegram to offset our account. These practices were illegal at the time, and they were under pressure. Fortunately, we have established a good reputation relationship with each other in the remittance market, and we also understand each other's corporate cultural background. To use today's parlance, it is "know your customer."

I have not forgotten that when I saw that employees in other departments were preparing New Year's goods, while our colleagues in the market were still contacting funds and adjusting positions, they had no time to spare, and I felt guilty in my heart. At that time, hundreds of thousands, tens of millions, and tens of millions of dollars every day seemed not to be money, but a symbol, and the transaction was completed with just a fax or a phone call record. A few of us can work tirelessly to take the lead in convening financial market symposiums in some regions across the country, promote Jiaxing, warmly receive, and be very busy in order to strive for the inflow of funds from inside and outside the province; of course, we are welcomed and sent time and time again. Nor did he drink less.

I have not forgotten that a few of us, with the cooperation of the Security Department of the People's Bank of Jiaxing, were able to carry millions or tens of millions of physical treasury bills back to Jiaxing by train or plane. Although our market has a lot of profits, apart from entertaining customers, we are very frugal. We stay in cheap hotels, squeeze into buses, and eat at food stalls when traveling. Be honest and self-disciplined.

2. The earliest securities market in Jiaxing was born here

Our Jiaxing Financing Center introduced securities trading business to Jiaxing for the first time in 1989. Initially it was mainly a Treasury bill transfer business. At that time, treasury bills were national bonds that relied on administrative assessments, had low interest rates, were not negotiable, and had long maturities, and it was also very difficult to issue them. Since 1988, driven by financial reforms, the transfer of treasury bills has become a reality. On April 1, 1989, we set up a trading counter, and newly assigned college students and two retired old bankers hired to carry out over-the-counter treasury bill trading and bulk institutional trading business. This was the earliest prototype of the securities market in Jiaxing City. It was later opened to the public under the names of the Jiaxing Agency of Zhejiang Securities Company and the Securities Trading Department of Jiaxing Financial Market. Later, various banks, trust companies, and financial departments also successively opened securities business departments including stock trading. Some institutions even sent employees to do internships with us during the preparations for establishment. This is something to talk about later.

At that time, a group of business-savvy people began to purchase treasury bills, and then traded them on our counter to earn the price difference. At that time, the yield on second-hand Treasury bills was also very high, with the average yield ranging from 17% to 27%. It brought huge returns to the earliest investors in Jiaxing. At that time, you could see their evasive figures by the bridge at the station and pier, because private transactions were still speculative and would be attacked from time to time. Although they have different identities, and some of them have even served their sentences, they should be said to be our first generation of securities brokers in Jiaxing. They go around the country to buy goods from house to house, and sometimes they come in bundles and boxes for transactions. We don’t have time to count them, so we can only make a large number and hand it over the next day. They have an excellent reputation. In order to utilize their resources and worry about losing these customers, we accommodate them without restrictions on business hours and provide free packed lunches.

Due to their participation, our transaction volume continued to increase, but we also attracted the attention of the unit inspection office. Because we couldn't figure out why we were interacting with the traffickers, we once went to the residents' association where the traffickers were to investigate. Faced with this, although we were unhappy, we were still magnanimous and felt a sense of accomplishment when we saw the daily profits.

Since the face values ??of treasury bills are very small, mainly in denominations of 10 yuan, it brings many hidden dangers and inconveniences to family storage. In order to facilitate the public, Jiaxing Financing Center launched the securities custody business on July 1, 1991. The bank started a custody business, which was news in the newspapers at the time.

As the first batch of practitioners in Jiaxing’s securities industry, when the Jiaxing Agency of Zhejiang Securities Company was established, we also made bold attempts to cultivate and develop Jiaxing’s securities and treasury bond markets, and actively explored new With its institutional model and transaction methods, it gradually combines financing and securities trading, and cooperates with the Ministry of Finance and National Debt to use funds flexibly through financing, securities repurchase, custody and other businesses, improving the efficiency of capital use for commercial banks. , achieving the role of rationally guiding the flow of funds through the market. At the same time, it also accumulated a certain amount of wealth for Jiaxing's financial market.

The development of securities trading business has also enabled us to boldly explore the primary securities market, issue bonds for enterprises as an agent, promote the direct financing of Jiaxing enterprises, and lay the foundation for the prosperity of Jiaxing securities market. A fully functional securities market has been formed in Jiaxing, and securities knowledge and risk awareness have been promoted and popularized in Jiaxing society.

In order to alleviate the problem of insufficient funds for enterprises in Jiaxing City, as a pioneer in the financial market of Jiaxing City, we conducted in-depth corporate investigation and research, conducted feasibility analysis of bond issuance, and designed bond certificates and issuance plans. We have underwritten the issuance of corporate bonds worth nearly 100 million yuan by Jiaxing Petroleum Company, Wujiao Chemical Company, Timber Company, Nanhu Cloth Factory, Steel Wire Factory, etc., with terms ranging from one year to two years to five years, and required Ensure there is no risk in approval, printing, sale, custody and redemption. I remember that we once took turns chewing bread and staying by the machines in Jiaxing Printing Factory to ensure that there were no mistakes in the printing process. Every issuance day, the business counter at our north gate is crowded, and we have to ask the security department of the People's Bank of China to maintain order. "Go to Beimen Wangwuqiao Bank to buy bonds" was a household name in Jiaxing urban area at that time.

However, when we were successfully operating this real business, we were also under tremendous pressure in our hearts. Because companies directly finance, the market risk is very high, which is still a problem at present. Once there is a problem in the operation of the company, a run is very likely to occur. In order to ensure that the bonds can be paid on time, during the bond holding period, we should always pay attention to the developments of the bond-issuing companies and help the companies coordinate funds to respond to requests. And I prayed to God in my heart that nothing would happen. Because we know that if the bonds purchased by our institutions of the People's Bank of China cannot be repaid on time, it will cause trouble.

In order to regulate the securities market, we have also established the Jiaxing Agency of the Zhejiang Provincial Securities Registration Center in Jiaxing, which specializes in registration and custody of securities held by enterprises, in order to guide enterprises to standardize equity disposal and prepare for listing. We mainly participated in the registration and custody work of three companies: Qianjiang Biochemical, Jushi Group, and Huiken Co., Ltd. (now Zhongbao Technology Control). Do your part for their future listing.

3. An unforgettable journey

Looking back on the past two decades, under the leadership of the Party Central Committee and the State Council, the reform of the financial industry has been rapidly promoted, especially in the last ten years. , a new financial landscape has been formed in the reform. And has gradually integrated with international standards. The once glorious Jiaxing financial market has completed its historical mission and has even been forgotten and unknown. We recall this period of history today to commemorate the 30 years of reform and opening up and to praise the tremendous changes that reform and opening up have brought to China. Our current financial regulatory landscape is a continuation of this history. At the same time, we are also grateful to the policy environment of seeking truth from facts, emancipating the mind, and daring to innovate that has been advocated since the Third Plenary Session of the 11th Central Committee of the Communist Party of China for giving us opportunities and wisdom.

It is worth mentioning that the open-minded, courageous and tolerant leadership of the Jiaxing People's Bank of China at that time also allowed us to do it freely. History will never forget that since 1988, the successive presidents of Jiaxing People’s Bank, Zhu Jinhai, Shan Lirong and Wang Zhongjia, have made important contributions to the reform and development of Jiaxing’s financial industry and the development of Jiaxing People’s Bank. Especially since 1993, Comrade Wang Zhongjia, then deputy governor of the People's Bank of Jiaxing (currently president of the People's Bank of Jiaxing), as the direct leader in charge of the financial market, has used his keen discernment, responsible spirit and open-minded mind to , let us, the Jiaxing Financial Market team, show their talents. It is precisely because of such decision-makers that our Jiaxing financial market is vigorous and famous far and wide. It is undeniable that we have also created good economic benefits.

Here, I would like to thank all the banks in Jiaxing for their sincere cooperation with us, especially the comrades in the planning departments of each bank. They are: Wang Qingying and Qian Yimin of ICBC, Feng Dexin and Wu Zhiyong of Agricultural Bank of China, Wang Ping, Mao Lijun, Jian Cheng Nengping, Zhang Zhimin, Suburban Agricultural Bank of China Ye Shiqi, Gao Qingshi, etc. There are other comrades including comrades from the planning departments of various county-level agencies. Our financial market in Jiaxing City is brilliant because of your participation!

Today, some of our former group of operators continue to stay in the People's Bank of China, and some are playing a vital role in supervisory positions in the banking regulatory department. I would also like to take this opportunity to thank and miss our colleagues who worked together in the old bank building in Wangwuqiao. They are: Zhong Sheng, Shen Junyu, Yang Ling, and Zhang Yuping (now working at Jiaxing People's Bank of China); Xu Xiaocun, Chen Zhu, Chen Xiaoyuan, Shan Yunfang, and Zhao Jianlin (now working at Jiaxing Banking Regulatory Bureau); Li Shaofang (now working at Jiaxing Commercial Bank) Work); Wang Liangen (now working at Hecheng Cooperative Bank); Tang Dingyan (now working at a guarantee company in Hangzhou); Fei Jinxing (now working at a securities company in Shanghai). In addition, there are retired bank workers from Jiaxing People's Bank of China, Jiaxing ICBC, and Jiaxing Agricultural Bank of China. They are: Yao Qiyin, Zhang Wenruo, Liu Shuzhen, Yu Lihua, Liu Cuiying, Yao Jiemin, etc.

/4352/more/1610450/ZTmore1610450.htm