With the signing of the national welfare contract, it marks the official beginning of my country's unique welfare system reform.
This signing ceremony was not only reported by major domestic media, but also by foreign media using front page headlines and published commentator articles on the second page.
Most of the media in our country have a positive attitude towards this welfare system.
Although they are still worried about whether fiscal expenditures can continue to maintain the stability of this welfare system, this is a huge good governance that allows people across the country to enjoy the dividends brought by the country's rapid development.
Moreover, as a national welfare contractor, the National Welfare Acceptance Fund provides the bottom line for national fiscal expenditures on welfare funds.
Although they don't know whether the National Welfare Acceptance Fund has the ability to cover the bottom line, since it can reach an agreement with the country, it must have certain strength.
However, foreign media have mixed praise and criticism. Positive reports focus on emphasizing the economic achievements of my country's reform and opening up, as well as the government's willingness to share the fruits of development with the people.
At the same time, the credit for my country's economic take-off is attributed to its close cooperation with the Western camp.
Although the latter point of view is not wrong, it is more about what I want to say to the polar bears, and I want the polar bear people to see that as long as we cooperate with us, the economy will definitely achieve great development, hoping to cause the polar bears to abandon the darkness and turn to the light.
Negative reports emphasize that although our country's economy has achieved certain development, it is already the third largest economy in the world after polar bears.
However, due to the large population in our country, if we want to obtain a higher quality free public welfare, fiscal expenditure will be unsustainable.
Regardless of the disturbances from the outside world, the domestic people are eagerly looking forward to it, especially in the vast rural areas. Many of them have not yet felt the spring breeze of reform and opening up. At present, the fastest economic development is in coastal cities.
This reform of the welfare system is considered to be the first batch of reform and opening up dividends that they have received. It allows them to have education as a child and provide for them in old age. They don’t have to worry about getting sick and having no money for treatment, which solves all their worries.
They are born to work hard to make money and improve their current living conditions, but this is not easy. Although the economy has made great achievements, except for Zhao Yi's company, other industrial companies have not added many jobs.
Since Zhao Yi's companies have earned a large amount of foreign exchange for the country, the ratio of the RMB to the U.S. dollar is now very stable, basically maintaining an exchange ratio of 2:1.
Such a high exchange rate is actually very detrimental to my country's export of low-end products. This is why other companies, except Zhao Yi's company, have not exported many products in recent years.
This is an unsolvable problem. Just like the original Eagle Sauce, don't they want to retain low-end products? It's just that their low-end products lack market competitiveness and have to move some supply chains to other countries.
Fortunately, although the export competitiveness of my country's low-end products has weakened, our domestic market is still very large, and the domestic market is not yet fully open, which is conducive to the upgrading of my country's low-end industries.
In fact, there are actually no products that are low-end, only industries that are low-end. In other words, rubber bands are not low-end products, but the industry that produces rubber bands may be low-end.
If our country now wants to continue to develop these low-end industries, it needs to upgrade these industries, that is, to improve product quality, improve industrial production efficiency, reduce product costs, and increase product value.
However, upgrading these industries in our country requires a large amount of funds and technology. Zhao Yi can provide technical support, but in terms of funds, Zhao Yi is temporarily unable to do anything because he does not yet have a financial institution in the mainland.
Fortunately, when I met with the old man last time, we also talked about the current development of state-owned enterprises. At the same time, the government must be very clear about my country's export situation and understand the current crux.
It is now imperative to carry out the reform of state-owned enterprises, but if we want to successfully complete the reform of state-owned enterprises, we must provide a large amount of financial support.
If it were before, the government could allocate a sum of funds to carry out reforms in this area, but it has already planned to reform the welfare system. The government will spend a large amount of funds in the welfare field, and there will not be much money on hand.
Therefore, before carrying out the reform of state-owned enterprises, it is necessary to carry out necessary reforms in our country's finance to help state-owned enterprises successfully complete the reform.
In fact, a round of financial reforms had just been completed before, and the financial structural framework of the People's Bank of China and commercial banks was determined.
The central bank no longer handles credit business for enterprises and individuals, and has become a central bank specialized in financial management, formulation and implementation of monetary policies and other functions, while the credit business of enterprises and individuals is attributed to commercial banks.
But these are all reforms based on state-owned banks and basically have nothing to do with private banks.
In fact, after HSBC completed the integration, Zhao Yi submitted applications to the central bank for the establishment of private banks, investment banks and financial insurance, but did not receive relevant responses.
Under normal circumstances, Zhao Yi's application would have no hope, but it is different now. If he wants to complete the reform of state-owned enterprises, he needs the support of financial capital.
State-owned commercial banks themselves have a large number of non-performing assets and limited capital strength, and are unable to independently support large-scale domestic state-owned enterprise reforms.
At this time, Zhao Yi's capital becomes particularly important.
First, it has strong capital strength and can make up for the lack of capital in state-owned banks.
Second, he has advanced management experience and can help state-owned enterprises carry out smooth reforms.
Third, since he is a native of the country, his trust level is much higher than that of foreign capital.
Especially after this welfare contracting, the relationship between Zhao Yi and the government has been unprecedentedly improved, and Zhao Yi is no longer so wary of coveting Zhao Yi in the domestic capital market.
Therefore, Zhao Yi's application was approved under this historical background. However, Zhao Yi's commercial bank application needs to be modified. It cannot be a private bank but a joint-stock bank.
Judging from the current development situation of domestic private enterprises, basically no private capital can penetrate Zhao Yi's discernment.
Moreover, to participate in the reform of state-owned enterprises, the capital required will definitely be very large, which makes it impossible for many people to meet the requirements.
Therefore, Zhao Yi held 10% of the shares in his own name, and let his companies contribute the rest of the shares, dividing up 60% of the shares. The remaining shares were divided among several major domestic banks and the government.
As for the name of the bank, Zhao Yi was very straightforward and took over the China Minsheng Bank from his previous life. Who is Zhao Yi who likes this name better.
Although Minsheng Bank is a joint-stock bank, most of the shares are still in the hands of Zhao Yi. There is no way, because he has a lot of funds. Several major state-owned banks have invested in their capital in order to obtain these shares.
They also know that as long as this bank is in the hands of Zhao Yi, its future will definitely be bright. At the same time, it can also have a good relationship with Zhao Yi and Zhao Yi's companies, so that they will not transfer their deposits to Minsheng Bank on a large scale.
As soon as Minsheng Bank was established, its capital reached 100 billion yuan. Since it is a joint-stock bank, Minsheng Bank can absorb public deposits, and the scale of funds in the hands of the bank will be even larger.
In addition to Minsheng Bank, Zhao Yi also established a wholly-owned competing investment bank. Since this bank does not need to absorb public deposits and only invests externally, it does not need to become a joint-stock bank.
In addition, Zhao Yi also established a wholly-owned insurance company, Ping An Insurance Company.
By the same token, Zhao Yi just likes the name. Since it is a wholly-owned insurance company, it cannot apply for a name with the prefix "中", and it cannot engage in policy insurance products, such as pension insurance and medical insurance.
Since the state provides free medical benefits, commercial medical insurance is expected to disappear in China, but commercial pension insurance can be introduced.
Although Ping An Insurance Company cannot directly absorb policy insurance, it can undertake investment in policy insurance funds. This is very important. It is important to know that medical insurance and pension insurance are managed by the national welfare fund according to the contract.
The National Welfare Fund then hands over the assets to the National Welfare Acceptance Fund for operation.
In other words, during the 50-year contract period, the National Welfare Acceptance Fund is the actual manager of medical insurance and pension insurance, and the National Welfare Fund is only the nominal manager.
However, neither the National Welfare Fund nor the National Welfare Acceptance Fund has financial capabilities. If you want to operate the money, you need to find a reliable financial institution to help operate it.
So is there anything more reliable than Ping An Insurance Company? At least Zhao Yi thinks so, so Zhao Yi plans to hand over both medical insurance funds and pension insurance funds to Ping An Insurance Company.
You know, even if there is a deficit in medical insurance funds and pension insurance funds in the future, Zhao Yi will suffer the biggest loss.
He needs to use his own money to make up for the shortfall, so the control of these funds must be in his own hands. Otherwise, if something happens, he will have to find someone to reason with.
In addition to allowing private capital to enter banks and other related financial industries, this reform is also preparing to create my country's stock market and provide Chinese enterprises with a financing option, which is part of the reform of state-owned enterprises.
As soon as Zhao got what he wanted, he immediately asked HSBC to arrange experienced personnel to come over and set up the structures of these financial institutions, so that they could be basically operational within this year.
Due to the needs of education, Hengtong Communications Company has now accelerated the laying of domestic optical fiber networks.
Therefore, Zhao Yi also hopes that his financial company can also catch up with the Internet trend. Anyway, these financial institutions of his have just been established and do not have any historical burden.
Another highlight of this financial reform is the establishment of a central bank unified financial account identification code.
In other words, every citizen needs to establish a unified financial account identification code with the central bank. In the future, no matter which bank the account is opened in or which insurance company the insurance is bought, it will be displayed under this identification code.
This approach plays a huge role in helping the central bank understand the domestic financial situation and establish financial risk control, because each unified financial account identification code has its corresponding risk assessment level.
At the same time, this approach also facilitates inter-bank settlement and plays a huge role in combating black cards and illegal financial operations.
The reason why Zhao Yi proposed this operation was to facilitate the payment of pensions. The central bank's unified financial account identification code is equivalent to providing each citizen with unique bank account identification information.
In this way, there will be no need to worry about many problems of false pensions or pensions for deceased elderly people. This is very necessary in this relatively backward era.
This financial account identification code stays with a person for life and is difficult to fake.
Of course, in addition to preventing fraud, it also has a very important role, which is to understand the incoming and outgoing status of personal funds. This can not only prevent corruption, but also facilitate tax collection, and it can also understand the relationship between funds in all bank accounts.
It plays a decisive role in my country's financial regulation. (End of chapter)