Red Finance, CPC’s Legendary Undertaking in the Revolutionary Years
In the revolutionary war years, the Communist Party of China persisted in their struggle under difficult circumstances. The financial institutions constructed in the revolutionary base areas were often referred to as “Red Finance.”
After the failure of the “Great Revolution” and the China’s revolution movement entered a low ebb, the Chinese Communists moved their battlefield to the areas where the Kuomintang’s rule was weak, and established many revolutionary bases. These bases were generally located in the rural areas on shared borders of several provinces. It became the founding place and cradle of the Red Finance.
Since then, the development of “Red Finance” has experienced four phases: the Great Revolution, the Agrarian Revolution, the War of Resistance against Japan, and the War of Liberation. The issuance and governance of the RMB has become a key part of the financial undertaking. The RMB was born on December 1, 1948 and was issued by the newly formed People’s Bank of China. Since then, the development of the RMB and even China’s financial industry has experienced many historical periods. It now entered a glorious stage of modernization and internationalization.
Pioneers of China’s Capital Market Presented Valuable Advice
The establishment and development of China’s capital market was a crucial step in China’s financial history. It has been a positive force to the development of China’s economy. From 1990 to 2020, China’s capital market grew from small to large and has achieved historical breakthroughs. At present, the scale of China’s stock and bond markets ranks second in the world. Its international influence is increasing day by day.
On the 30th anniversary of the establishment of China’s capital market, Caijing magazine successively interviewed many capital market pioneers, founders and witnesses. They reviewed the hardships of the capital market’s start-up era and the gains and losses of reform and development in the past 30 years. They also presented valuable advice and suggestions for the future reform and development of China’s capital market.
The Wealth Management Market Entering A New Era of Standardized Development
Since the reform and opening up period of the late 1970s, as the economy developed, income growth and financial transitions were well underway—and remain so to this date. At the same time, the market share of China’s wealth management industry has been continuously rewritten, and residents’ concepts of wealth have also been reshaped. The historical alterations of Chinese household wealth also reflects the rise of the country’s economy and the changes in the RMB wealth market.
From “savings first” in the 1980s and 1990s, to the emergence of the wealth management market after 2001, to the interactive combination of multiple financial products, the era of large asset management has quietly arrived. With the diversification and globalization of the wealth management market, new challenges to regulations continue to surface. In response to the endless chaos in financial markets, in April 2018, the People’s Bank of China jointly issued new regulations with a number of financial regulatory authorities. The wealth management market has officially entered a new era of standardized development. This has seen the market order achieving a fundamental improvement.
The Capital Market is A Powerful Impetus for China’s Economic Development
Since the 1990s, China’s capital market has provided a powerful impetus for economic development. Indeed, the total amount of financial assets and social wealth has grown rapidly. More importantly, the development of the capital market has allowed listed companies to comply with laws and regulations, making the entire society aware of the importance of transparency.
The foundation of the capital market is transparency. The foundation of the healthy operation of modern society is also all about transparency. The capital market tells us that transparency is the basis for achieving openness, fairness, and justice. The transparency of information disclosure is the foundation of the system and is very important to the reform and development of China’s society. China’s capital market still has a long way to go, but the direction for the future is clear. In order to build an international financial center in the new era, listed companies and other market entities are all responsible for achieving this goal.
