Combined with the asset structure adjustment effect and wealth effect respectively, explain the problems and countermeasures in the process of monetary policy transmission in China?

Monetary policy is the government in order to achieve the established economic goals, the use of a variety of tools to regulate the money supply and interest rates and thus affect the operation of the macroeconomic state of the various types of guidelines and measures, in the national macroeconomic regulation and control occupies an important position in the theory of monetary policy in macroeconomics is also in the core position. The study of monetary policy involves a rather important aspect, namely, the transmission channel of monetary policy. Since 1984, when the People's Bank of China (PBOC) specialized in exercising the functions of a central bank, monetary policy in the modern sense has begun to take shape formally in China. In the past 20 years, the People's Bank of China from the original "government cashier" role gradually evolved into an important macroeconomic control departments, monetary policy from the original basically ignored gradually recognized as an important means of macroeconomic control.　　

Since the establishment of China's central bank system in 1984, the central bank's means of regulation and control with the transformation of the economic system and the transition from direct to indirect regulation and control, so that the transmission mechanism of monetary policy at different stages of different characteristics. From 1984 to the present, China's monetary policy regulation tools and changes in the transmission mechanism can be divided into five stages.

(A) direct regulation of monetary policy (1984-1993)

This period, the country's monetary regulation and control is mainly based on the central bank's direct regulation and control, monetary regulation and control tools are mainly for the interest rate, the bank reserve requirement ratio, and constantly strengthen the control of the size of the credit and the amount of refinancing. In this period of monetary policy transmission, 1984 to 1985 to curb credit out of control to take tight monetary policy, 1986 tight monetary policy to play a role in the effect of industrial growth rate fell to 0.9% that year. Due to the existence of pressure to relax the monetary policy, the central bank canceled the practice of directive control of credit in the same year. bank loans increased by 28.5% in 1986, and the loans of rural credit unions increased by 42.1%, and the economy heated up again. in 1992, the macroeconomic policy was loosened again, and a new round of overheating of the economy began. In that year, the credit scale growth as shown in Table 1, the financial order of the phenomenon of chaos, the People's Bank began to implement severe tightening policy. Combined with the analysis of the data in table 1, from the implementation of the policy results, although the direct regulation lacks the necessary flexibility, so that China's money supply and economic growth ups and downs, but as far as the policy is concerned, regardless of the expansion or contraction of the behavior, can quickly achieve the intention of monetary policy regulation.

(ii) direct regulation mainly, indirect regulation supplemented by monetary policy (1994-1997)

This period, the central bank's monetary control tools are mainly for the credit program, followed by interest rate tools, the deposit reserve ratio, a commonly used monetary control tools in this period is less used. 1994 in order to overcome the aggregate demand In 1994, in order to overcome the situation of aggregate demand suppression, while inflation continues, chose to control inflation as the primary goal of monetary policy, thus beginning a four-year tight monetary policy. 1994-1997 China's central bank monetary policy operation is characterized by repeated loans and foreign exchange market "hedge" operation to regulate the basic currency. "operation to regulate the supply of base money (see table 2).

Table l: 1984 to 1993 monetary policy regulation results Year Credit plan (billion yuan) Actual credit (billion yuan) Growth rate (%) Growth rate (%) Growth rate (%) GDP growth rate (%) Inflation rate (%)

1984 423 1176 49.5 34.3 34.8 16.9 2.8

1985 713 1140 24.4 14 25.4 13.5 8.8

1986 950 1685 23.3 29.4 20.6 8.8 6

1987 1225 1442 19.4 14.4 24 11.6 7.3

1988 1560 1519 46.7 21 21.2 11.3 18.5

1989 1600 1858 9.8 6.6 18.3 4.1 17.8

1990 1700 2757 12.8 19.2 28 3.8 2.1

1991 2100 2877 20.2 23 26.5 9.2 2.9

1992 2800 3526 36.5 25.2 31.2 14.2 5.4

1993 3800 4846 3513 38.3 37.3 13.5 13.2

Source: Web site of the Superintendent of Banks of China.

Table 2: Changes in the structure of the Central Bank's base money Year\Increase Ratio\Main channels of the base money industry 1995 1996 1997

Increase Ratio Increase Ratio Increase Ratio Increase Ratio

Foreign exchange accounted for 2302 64 2765 45 3072 87

Refinancing to state-owned banks 2832 -79 1317 21 -2059 -54

Source: Quarterly Statistical Report of the People's Bank of China (1996.01-1998.01).

(III) Monetary Policy with Indirect Regulation and Control as the Main Focus (1998-2003)

During this period, the central bank's monetary management adopted asset-liability ratios in place of loan-size limits, and focused on interest rates, reserve requirement ratios, open-market operations, and rediscounting in terms of regulatory tools in order to strengthen the regulation of the money supply. 1998-1999 was a period of moderate monetary expansion. After the Asian Financial Crisis, the Central Bank took favorable measures to ease monetary policy in order to overcome the "borrowing" behavior of commercial banks. 2000-August 2002 was a period of stable to loose monetary policy. During this period, the consumer price index was 0.6%, and the deflationary phenomenon had not completely disappeared. 16 months from September 2002 to the end of 2003 was a period of moderate deflation.

(D) the establishment of indirect control policy stage (2004 to 2007)

Since 2004, the central bank has taken a series of market-oriented measures to "fine-tune" the excessive growth of credit funds, when China's monetary policy transmission is mainly based on the main credit transmission, the exchange rate, Interest rates and other transmission channels as a supplement to the indirect monetary control policy basically established.

(E) the implementation of proactive fiscal policy and moderately loose monetary policy (2008 to the present)

September 2008 after the spread of the global financial crisis, by the financial crisis, the international economic situation deteriorated sharply, China's economy by the impact of the increase in the People's Bank of China began to implement moderately loose monetary policy, the benchmark interest rate for deposits and loans was cut five times, the benchmark interest rate for one-year deposits from 4.14% to 4.14%, and the interest rate was cut from 4.14% to 4.14%. The benchmark interest rate for one-year deposits was lowered from 4.14% to 2.25% by a cumulative total of 1.89 percentage points, and the benchmark interest rate for one-year loans was lowered from 7.47% to 5.31% by a cumulative total of 2.16 percentage points. The reserve requirement ratio was cut four times (see table 3), and monetary policy was used more frequently. By the second half of 2009, has realized a rapid return to economic growth, which is when the central bank began to consider the issue of loose monetary policy timely and gradual exit.

Table 3: Reserve Ratio Adjustment Time Reserve Adjustment

2008.9.16 17.5% to 16.5%

2008.10.9 16.5% to 16%

2008.12.5 16% to 15%

2008.12.23 15% to 14.5%

Source: People's Bank of China website.

In 2010, the money supply declined steadily and monetary policy returned to normal. In 2010, the People's Bank of China (PBOC) raised the RMB legal reserve requirement ratio (RRR) for depository financial institutions by 0.5 percentage points three times on January 18, February 25 and May 10, 2010, with small financial institutions, such as rural credit unions, staying put for the time being, in order to hedge some of the excess liquidity in the banking system and to control the moderate growth of the total amount of money and credit, while taking into account the need to support small and medium-sized enterprises (SMEs) in financing and the development of rural finance. The government's response to the crisis has been very positive," he said.

In the first half of 2010, China continued to implement a moderately loose monetary policy, but the strength of easing has weakened. The People's Bank of China raised the reserve requirement ratio for financial institutions three times, and the money supply gradually and steadily declined; it guided banks to grasp the total volume, rhythm and structure of credit, and strengthened the prevention of financial risks; the liquidity of the banking system was basically moderate, and the reform of the exchange rate formation mechanism of the RMB was steadily promoted, and the financial operation was stable on the whole. However, there were also sharp fluctuations in asset prices, negative real interest rate levels, an overall weakening of the stock market and a buildup of systemic financial risks.

Open market operations played an important role in liquidity management in 2010. The PBOC carried out open market operations flexibly, timely and moderately in accordance with changes in market liquidity to maintain reasonably abundant liquidity in the banking system.

On June 19, 2010, a spokesman for the People's Bank of China (PBOC) said that based on the domestic and international economic and financial situation and China's balance of payments, the PBOC has decided to further push forward the reform of the exchange rate formation mechanism of the renminbi (RMB) and enhance the flexibility of the RMB exchange rate. The direct goal of the central bank's exchange rate reform this time is to ease international pressure. Whether from the point of view of domestic factors such as the foreign trade situation in May, international speculative short-term capital flows and domestic CPI exceeding 3%, or from the point of view of structural changes in the global exchange rate, the cost of restarting the exchange rate reform of the RMB at this time is relatively low. In a certain sense, this means that China will allow a certain degree of slow appreciation of the RMB, and therefore also means tightening domestic aggregate demand, reducing the likelihood of an interest rate hike during the year. Restarting the exchange rate reform on the eve of the 2010 G20 Toronto Summit was better timed. In the future, it will continue to follow the principles of initiative, controllability and gradualism, further improve the managed floating exchange rate system based on market supply and demand, adjusted with reference to a basket of currencies, give full play to the fundamental role of market supply and demand in the formation of the RMB exchange rate, and keep the RMB exchange rate fundamentally stable at a reasonable equilibrium level.

From the empirical analysis of the above stages of monetary policy, it is not difficult to see that at present, China is still implementing the credit channel-based transmission mechanism, but with the deepening of the economic and financial system reform, the interest rate transmission channel plays an increasingly important role in the transmission of monetary policy, and at the same time, the role of the asset price channel in the transmission of monetary policy has also gradually come to the fore.

Three, China's monetary policy transmission channels and the main problems and reasons

Through the analysis of the development of China's monetary policy transmission channels and the constraints on the role of the various channels, combined with the problems of monetary policy transmission channels, to analyze the reasons for the emergence of their causes.

(A) interest rate transmission channel

In China, because the marketization of interest rates has not been completed, the interest rate formation mechanism is not reasonable, so that the commercial bank's credit supply and the enterprise's investment and financing behavior is subjected to constraints, weakening the effect of monetary policy. Specifically the following aspects:

First, the interest rate is not fully marketized distort the interest rate formation system. In the interest rate market-oriented countries, the benchmark interest rate generally refers to the central bank rediscount rate and re-lending rate, and then as a benchmark through the money market interest rate intermediary and other short-term interest rates corresponding to the formation of long-term interest rates such as deposit and lending rates regulation. As China's long-term interest rates such as savings and loans are regulated, short-term money market interest rates are difficult to influence the long-term interest rates through the market-based interest rate term structure; savings and loans interest rates as a policy interest rate, but the short-term interest rates on the money market will have a small impact. In this way, although the short-term interest rates have been market-oriented, but the real economy has an impact on the long-term interest rates are not fully market-oriented, ultimately leading to one hand, investment, consumption and other economic variables on the market-oriented short-term interest rates are not sensitive to the response, on the other hand, non-market long-term interest rates have lost the function of the market balanced optimization of the allocation of economic resources.

Secondly, the non-complete marketization of interest rates restricts the elasticity of consumption and investment to interest rates. Market-oriented interest rates reflect the social investment compensation and the cost of capital, for enterprises, the market-oriented interest rate is the benchmark for their investment decisions compared with the implicit rate of return, while the official announcement of the lending rate of non-market interest rates, can not truly reflect the cost of capital of enterprises, which results in investment on the official announcement of the lending rate is not sensitive. And from the resident level, interest rate control makes the interest rate at a low level for a long time, the fluctuation amplitude is small and low frequency, which makes the scope of change of the wealth return is small, even if the interest rate is some fine-tuning, people will not think that there is a big change in the wealth return; at the same time, the interest rate is not fully marketized to limit the liquidity of the market, and produces the offsetting effect of the resident's consumption, which further reduces the change of the interest rate on the wealth value of the The extent of the impact of interest rate changes on the value of wealth is further reduced, which essentially restricts the strength of the impact of interest rates on consumption and savings.

Thirdly, the incomplete marketization of interest rates restricts the credit supply of commercial banks. Under the condition of interest rate marketization, the interest rate has the inherent equilibrium mechanism to regulate the economy, while the interest rate incomplete marketization destroys this equilibrium mechanism, and forms a constraint on the credit supply of commercial banks.

Fourth, the incomplete marketization of interest rates restricts the efficiency of the conversion of savings into investment. Interest rate control in developing countries has caused greater damage to economic growth, these low or negative real interest rates caused financial disintermediation, interest rates can not effectively play the role of savings into investment leverage. In terms of China's reality, the financial institutions deposit and loan difference as the efficiency of savings and investment conversion of the examination index, from the mid-1990s, the deposit and loan difference has been increasing, long-term deposits in financial institutions, and ultimately a part of the funds will become a financial institution to make up for non-performing loans and losses, the formation of obstacles to the transmission of monetary policy.

Fifth, interest rates are not fully market-oriented distort the stock market prices. Interest rates as a sensitive indicator of the stock market, the central bank's every interest rate adjustment, and even investors on the trend of interest rate predictions or market rumors of interest rate changes are very likely to cause fluctuations in stock prices, it can be said that interest rates to some extent is a reference benchmark for the change in stock prices. In the interest rate is not fully market-oriented background, because the interest rate essentially acts as a means of redistribution, and can not reflect the real supply and demand for funds, as a result, changes in real interest rates will inevitably lead to abnormal reaction of stock prices, which is the cause of China's stock market in recent years, the bubble, the accumulation of risk, and ultimately lead to the stock market transmission mechanism is not smooth important constraints.

(B) credit transmission channel

First, monetary policy through the credit channel in the People's Bank of China stage of poor transmission is mainly due to the lack of interest rate elasticity, changes in interest rates can not effectively affect the source of funds of China's commercial banks, which in turn affects the size of its loanable funds.

Secondly, the poor transmission of monetary policy through the credit channel in the stage of commercial banks is mainly due to the existence of multiple business objectives of commercial banks, and the credit supply of banks is not fully affected by the scale of loanable funds. Through the empirical analysis of the effectiveness of the bank credit channel in each period can be seen: "enterprise-led period" of transmission is very effective; "central bank-led period" and "commercial bank-led period The conduction of "central bank-led period" and "commercial bank-led period" is weakly effective.

Thirdly, the credit transmission channel of monetary policy is effective in the "enterprise-led period" because the loans obtained by enterprises are used for productive investment in a timely manner. Because of this, monetary policy credit transmission channel in the "enterprise-led period" in the transmission process, empirical analysis results show that bank loans can affect the gross domestic product.

(C) financial asset price transmission channel

First, the proportion of stock assets in the residents' personal assets is not high, the wealth effect is not obvious. From the point of view of China's situation, at present, China's stockholders only accounted for less than 5% of the total population, while the United States this proportion has reached 40%. Moreover, in the financial asset structure of our residents, all kinds of securities (bonds, stocks, insurance policies) accounted for less than 30% of all financial assets, mainly cash and bank deposits. In addition, China's stock market speculative atmosphere is thicker, the stock market fluctuation is larger, the residents of the stock returns and risk awareness is more cautious, the whole society's stock holding rate is low. In this way, changes in stock prices have less impact on the amount of residents' real assets, and therefore changes in stock prices have a limited impact on overall residents' consumption.

Secondly, the imperfection of the stock market makes it difficult to realize the "Tobin's Q effect". Because the development of China's stock market is still in the initial stage, there are still some systemic and institutional problems in the stock market, and these problems also impede the transmission of the stock market to the national economy.

(D) exchange rate conduction channel

According to the relevant theories of international finance, under the condition of the existence of capital flows, the monetary policy is ineffective under the fixed exchange rate system, that is, the impact of the exchange rate conduction channel is completely opposite to the goal of monetary policy. Thus, in the face of the current international financial environment and accession to the WTO after the new situation, in order to enhance the autonomy and effectiveness of monetary policy, the exchange rate system is necessary to reform or re-select, expand the flexibility of the exchange rate system should be the correct direction of China's exchange rate system reform. At the same time should see in China there are still some implementation of the flexibility of the exchange rate system of unfavorable factors:

First, the depth and breadth of China's foreign exchange market is not enough, or a relatively "thin" market, the daily volume of foreign exchange transactions is very limited, the size of the foreign exchange market is not only far below the developed countries, but also lower than the emerging markets in East Asia. Countries. Such a thin market has inherent instability, if the expansion of exchange rate changes in the flexibility, may cause large fluctuations in the exchange rate, not only can not play a stabilizing effect on the economy, but also become a new source of shocks, trade and investment behavior has a negative impact.

Secondly, China's foreign exchange market, like all other types of financial markets, in the early stages of development, there are market rules are not sound, poor supervision, investor behavior is not standardized and irrational and other issues, and the foreign exchange market is originally the existence of multiple equilibrium of the more unstable market, the existence of these phenomena may further exacerbate the volatility of the exchange rate.

Third, China's foreign exchange market is still a lack of risk-averse trading tools, if the flexibility of the exchange rate to expand, will increase the exchange rate risk faced by enterprises and financial institutions.

Fourth, China's exchange rate system arrangements can not yet be considered entirely from the perspective of short-term macroeconomic stability, China as a developing country in order to achieve some of the medium- and long-term development goals may distort the market in the short term, reducing market efficiency, but this cost is worthwhile in the long term.

Fifth, the practice of the transition countries in Eastern Europe shows that the transition from a fixed exchange rate system to a floating exchange rate system, to gradually increase the flexibility of the exchange rate system in a gradual manner, the effectiveness of the transition is better than the "shock therapy" approach.

Four, countermeasures

In the face of the current situation of the coexistence of a variety of monetary policy transmission channels, China should further improve the role of the credit channel and the interest rate channel at the same time, taking into account the development of asset price channels and exchange rate channels.

(A) steadily promote the marketization of interest rates, improve the flexibility of interest rates

1. gradually expand the floating range of commercial banks' lending rates

Currently, China's interbank lending market interest rates and interbank bond market interest rates, as well as foreign exchange deposit and loan interest rates have been liberalized, in order to strengthen the risk management of commercial banks' lending, the commercial banks should be able to determine the interest rate of the autonomy and gradually expand the floating range of their lending interest rates, as well as to strengthen the risk management of commercial banks' lending. Expand the floating range of their lending rates, so that market interest rates can sensitively reflect the supply and demand for funds, and play the role of interest rates to optimize the allocation of resources to support economic development.

2. Moderate adjustment of interest rate structure

Establishing a reasonable interest rate structure is the foundation of interest rate marketization. A reasonable interest rate structure should include the interest rate structure of funds between the central bank and commercial banks; the interest rate structure between the money market and the capital market; and the interest rate structure between the interest rate and other assets and liabilities business. Only by establishing a reasonable interest rate structure can the positive effects of interest rate marketization be brought into play.

3. Strengthening the supervision of the operation of the interest rate channel

In the process of promoting the marketization of interest rates, the supervision of the operation of monetary policy brought about by the marketization of interest rates should be strengthened in order to facilitate the adoption of proactive countermeasures. At the same time, an effective risk monitoring system should be established to enhance the transparency of financial policies to reduce the deviation of the interest rate formation mechanism and improve the effectiveness of interest rate marketization.

4. Accelerate the reform of state-owned enterprises and improve their interest rate sensitivity

Further promote the reform of state-owned enterprises, prompting them to obtain funds through competition as a real market entity, so that interest rates play a regulatory and guiding role in investment. At present, China must be in accordance with the requirements of the establishment of a modern enterprise system, the implementation of state-owned enterprises to diversify the main body of the investment reform, to promote the state-owned enterprises in place, to avoid the emergence of the phenomenon of the "lack of funders", so that the state-owned enterprises to become a truly rational body of competition in the market, and to enhance the cost constraints to enhance the cost of enterprises on the changes in the cost and risk of investment Enhance cost constraints, increase the sensitivity and responsiveness of enterprises to changes in investment costs and risks, and increase the sensitivity to respond to changes in monetary policy.

5. Improve the governance structure of non-state enterprises, improve the quality of individual and private enterprises

Non-state enterprises, especially private enterprises, should speed up the establishment of a modern enterprise system, the implementation of shareholding system reform, change the family-style management mode, and improve the level of business management. At the same time, it is necessary to strengthen and improve financial services for non-state enterprises, and guide financial institutions to strengthen credit support for private enterprises with market, efficiency and credit, so as to expand the coverage of monetary policy transmission.

6. Improving the asset and liability structure of residents

Broadening residents' investment channels, vigorously developing investment tools such as money market funds, individual entrusted loans, pooled trusts, pooled wealth management and insurance, and promoting the diversification of residents' financial assets. Further develop individual consumer credit, standardize the development of individual business loans, and increase the sensitivity of individual credit consumption and investment to monetary policy.

(2) Reform the internal mechanism of commercial banks, improve the monetary policy credit transmission channels

1. Continue to promote the comprehensive reform of state-owned commercial banks, give full play to its leading role in the national economy in the intermediary of capital financing

Actively promote the implementation of the shareholding system of the state-owned commercial banks to optimize the structure of property rights and clarify property rights relations. Further clarify and improve the property right relationship, optimize the property right structure. On the other hand, through the introduction of strategic investors advanced management and financial products, establish profitability goals and maximize the owner's rights and interests of the business philosophy, to enhance the international competitiveness of state-owned banks, to maintain the stability of the banking system, and to create a good financial environment for the transmission of monetary policy.

2. Strengthening the internal control and risk management of state-owned commercial banks

According to the requirements of the New Basel Accord, the Accord will be fully implemented in the global banking industry this year. To this end, China's state-owned commercial banks should strengthen the study of the Basel New Accord, improve the internal rating system and internal control of state-owned commercial banks to strengthen the constraints and supervision of the bank's internal power, in order to improve the bank's capital adequacy ratio and prevent financial risks. Establish the information disclosure system of the bank, especially strengthen the information disclosure of the bank's derivative trading tools, enhance the transparency of the bank's information, in order to ensure the bank's sound and safe operation. Establish an effective internal risk control mechanism and realize the independence of the internal audit management system.

3. Vigorously develop small and medium-sized financial institutions to enhance the coverage of monetary policy

Speed up the capital increase, listing and merger and reorganization of the existing joint-stock commercial banks and city commercial banks, and absorb the private capital to establish standardized local small and medium-sized financial organizations to provide financing services for the local small and medium-sized enterprises, so that the effectiveness of the monetary policy can be brought to the localities to promote the development of the local economy. These locally dispersed financial organizations are more familiar with the situation of local small and medium-sized enterprises, have lower costs of obtaining information and operate more flexibly. The development and growth of small and medium-sized banks have opened up new financing channels for SMEs. By matching the development of non-state banks with the non-state economy, the effectiveness of monetary policy is transmitted to all components of the national economy, thus making the impact of monetary policy more comprehensive and effective.

(C) Establishing a sound financial market system and improving the effectiveness of the asset price channel

1. Unclogging the stock market channel

Firstly, improving the quality of listed companies, sounding the procedures of stock issuance, and strictly enforcing the delisting system in order to curb speculative bubbles. A large number of high-performance companies is to enhance investors' confidence in long-term investment and the healthy development of the stock market. Our part of the listed companies operating efficiency is low or even loss, lost the value of investment, often become the object of speculation.

Secondly, the establishment of a standardized information disclosure system to effectively improve market transparency. Banker manipulation of the market, noise traders irrational behavior and other occurrences, mainly from the market information asymmetry. A standardized information disclosure system requires that information disclosure should reflect the principles of effectiveness, timeliness and adequacy; and that the content, format and standards of information disclosure should be unified and standardized so that investors can make comparisons and analyses.

Third, to build the linkage mechanism between the money market and capital market. China should strengthen the risk management of financial intermediaries, improve the level of financial supervision, based on the "open flow, blocking the dark flow", to further communicate the link between the money market and the capital market. To establish a standardized securities financing channels, with conditions to make banks and securities industry, capital market and credit market funds to finance each other, improve the efficiency of the use of funds, effective control of the supply and demand for funds; further expand the number of brokerage firms to enter the interbank lending market, improve the management of the stock pledge loans, the pledge rate, the close-out line and so on to be flexible control; to allow brokerage firms to enter the inter-bank treasury bond repurchase market; furthermore Liberalize the business scope of commercial banks, expand the traditional deposit and loan business to investment banking, and play to their strengths in participating in the merger and reorganization of enterprises and the divestiture and restructuring of banks' non-performing assets.

2. Unblocking channels in the property market

First, the government's macro-control should be strengthened to smooth out cyclical fluctuations in real estate and prevent excessive fluctuations in supply and demand. On the supply side, every effort should be made to improve the structure of housing supply. At present, the focus of macro-control should be on regulating the supply and demand of commercial housing, improving the structure of housing supply, and expanding the proportion of ordinary commercial housing and affordable housing. The management of land transfers should be strictly regulated, and the transfer of land for real estate development projects that do not meet the conditions set forth in the law should be strictly prohibited, so as to stop "speculative buying and selling" of land in accordance with the law. Demand, to guide demand to regulate the real estate market. First, tax policy should be used to crack down on short-term speculation; second, financial policy should not be "one-size-fits-all", and should distinguish between speculative demand and normal demand, while taking into account regional differences; third, the focus of controlling land should be to control land speculation, rather than controlling the supply of land, can be taxed through the unused land, increasing the cost of land holding; fourth, the cost of land holding for commodity development projects should be strictly prohibited from transferring land. The cost of holding land can be increased by levying taxes on idle land; fourthly, the pre-sale of commercial properties should be strictly regulated, and the management of online filing and sales contracts should be strengthened to prevent speculative behaviors such as virtual transactions, speculation on building flowers, price increases, and refusal to sell houses; fifthly, the public disclosure of information should be improved to cultivate the correct concept of housing consumption and guide people to rationally purchase houses, so as to avoid the people from blindly following the trend to ride on the bandwagon, becoming the final bill payer, and causing turmoil in the housing market and the society; sixthly, it is advisable to "ease" speculative demand. Speculative demand should be "dredged", not "blocked".

Second, broaden financing channels, real estate financing channels diversification. First, to increase the scale of real estate enterprises listed on the market, while encouraging some strong real estate development enterprises to issue real estate construction bonds. The second is to vigorously develop the specific project financing as the main feature of the private placement type real estate trust products, and actively encourage some real estate enterprises with good qualifications and securities companies to cooperate in the establishment of industrial investment funds, and gradually promote the purchase and long-term holdings of mature properties for the purpose of the development of real estate investment trust funds. Third, expand the scope of implementation of securitization of housing mortgage assets as soon as possible on the basis of pilot projects of commercial banks such as China Construction Bank, improve the structure of real estate loans, increase the liquidity of real estate loans, and at the same time alleviate the pressure of capital adequacy indicators on the expansion of bank assets. Fourthly, attracting foreign investment into the real estate market and encouraging foreign investment banks to come to China to establish cooperative projects and project investments with the real estate industry as the investment direction. Fifth, to establish a market system for the circulation of real estate financial assets, with the help of financial means such as asset securitization, indexing and fundization, to realize the circulation and trading of real estate financial assets.

(D) improve the RMB exchange rate formation mechanism, to ensure the coordination of exchange rate policy and monetary policy

With China's economic opening up to the outside world, the RMB "free exchange" process is also accelerating, the exchange rate channel in China's monetary policy transmission mechanism will gradually increase the role and status. From a practical point of view, this system is basically in line with China's national conditions. However, we must see that the current exchange rate formation mechanism in China is formed under the constraints of mandatory foreign exchange settlement and sales and foreign exchange turnover limits. This exchange rate formation mechanism to a certain extent will make the central bank in the integrated use of exchange rate policy, monetary policy intervention in the foreign exchange market in a passive position. Therefore, in order to dredge the exchange rate transmission channels, with the implementation of monetary policy, to further deepen the reform of the foreign exchange system, specifically the following points:

First, the gradual implementation of the enterprise willingness to settle and sell foreign exchange and foreign exchange turnover quota flexibility system, to change the situation of foreign exchange market oversupply in order to alleviate the pressure of the appreciation of the yuan. Give full play to the function of the bank's "reservoir", expand the proportion of enterprises in the current account to retain the proportion of current currency, reduce the enterprise's exchange rate risk and operating costs, and enhance the competitiveness in the international market.

Second, in order to ensure that the central bank in the foreign exchange market in the smooth operation of the open business, should be in the implementation of the managed floating exchange rate system under the premise of adjusting the exchange rate in accordance with the international market situation, relax the exchange rate fluctuations, enhance the flexibility of the nominal exchange rate, so that due to the inflow of foreign capital formed by the foreign exchange rate of foreign exchange oversupply of the situation by the local currency exchange rate of the moderate upward to alleviate the pressure of the central bank to reduce the passive investment in base currency. The pressure on the base currency is reduced.

Third, to speed up the development of the foreign exchange market, the appropriate increase in other types of foreign exchange market trading bodies, expand the number of trading bodies, gradually weaken the central bank's intervention in the foreign exchange market, to stimulate the degree of activity of the market transactions, increase the scale of market transactions, for the floating exchange rate system for the implementation of the real preparation of a good foreign exchange market.

Fourth, the establishment of a reasonable foreign exchange reserves management system, and gradually separate the country's foreign exchange reserves from other foreign exchange. China's net foreign exchange assets and the central bank's management of base currency has a great deal to do, in recent years, the people's bank has been difficult to get rid of with the foreign exchange account increase or decrease in passive injection or contraction of base currency situation, mainly because of the national foreign exchange reserves and other foreign exchange is not separated. In fact, the central bank should only be responsible for maintaining reasonable foreign exchange reserves. Gradually realize the securitization of the central bank's foreign exchange assets, in accordance with the principle of security, liquidity, micro-profit foreign exchange reserves will be put to good use.

Fifth, the central bank to realize the diversification of the means of control, should create conditions to change the current situation of a single means of control, the use of a variety of means to regulate the exchange market, including the inter-bank market open business, forward foreign exchange market intervention, interest rate adjustments, as well as adjustments to fiscal and monetary policy.