Statement from the Chairman
In considering the uncertain and demanding international economic and financial situation as well as the tensions on the domestic economy, IRAM boldly readjusted to the new normal of China’s economy under the strong direction of the Central Committee of the Communist Party of China and the State Council. Considering the arrangements as well as the primary focus of the central government over economic and financial work, IRAM proposed a number of enabling policies to strengthen reform and achieve stable development.
IRAM assisted organizations to best take advantage of the opportunities and meet the demands of this new normal and made good strides in accelerating reformation, development and monitoring the asset management and securities industries.
IRAM remains faithful to the key aim of helping the asset management and securities industry to better serve the economy, and actively support the real economy to grow healthier. As President XI Jinping emphasized, we should always take into consideration the development of the real economy and the growth of enterprises with core ambitiousness when drafting economic policies, so as to lay a sturdy base for China’s economy.
Chinese companies were helped to develop their overseas contacts, and Chinese products and services were encouraged to look more globally.
The overall policy framework was improved, thereby improving financing solutions and cost effectivity as well as financial scope. Through active policy reform and management, asset management and securities institutions were better at utilizing capital and therefore contributed more to the growth and revitalization of the real economy.
IRAM supported the core of financial risk by pursuing better risk moderation while pursuing development. As Premier LI Keqiang stated, we must maintain sound financial operations, govern and minimize financial risks, and guide and balance social prospects. IRAM continuously enhanced risk supervisory capabilities and follow the standards of “risk transparency, partition and manageability” to avert and govern the contamination of cross-sector and cross-market risks. IRAM facilitated financing in a lawful and compliant way and disposed of non-performing assets in a market-based approach, thus enabling asset management and securities sector to withstand multiple effects of economic downturn, corporate earnings falls, and capital market downturns.
IRAM emphasized mitigating existing risks and preventing future risks associated with key institutions to key sectors like real estate and supply heavy industries. Therefore, decisive progress was made in reducing risks as well as in developing the long-term risk control system.
In response to capital market volatility, IRAM took appropriate measures quickly to avoid the spread of market risks. Policy on risk management was improved with a view to improving liquidity control capabilities. IRAM conducted special investigations to strengthen internal governance and external supervision while restricting illegal operations and criminal activities and to severely penalize any regulatory violators, thus reducing operational risks.
Thanks to the combined hard work of numerous parties, the asset management and securities sector continued safe and sound operations with risks well controlled, thereby contributing to the continuous social and economic development.