Xiang Junbo fell: financial anti-corruption broke into a climax

Xiang Junbo fell: financial anti-corruption broke into a climax. Why is it said that this is a war to defend everyone’s interests?

Financial anti-corruption has caused major cases in the insurance industry.

On April 9, according to the website of the Central Commission for Discipline Inspection, Xiang Junbo, secretary of the Party Committee and chairman of the China Insurance Regulatory Commission, was suspected of serious disciplinary violations and was currently under organizational review.

The details of Xiang Junbo’s violation of discipline are not clear, but on the evening of that day, Premier Li Keqiang’s speech at the fifth Clean Government work conference of the State Council on March 21 was published on the Chinese government website, which said, for illegal acts such as individual supervisors and company executives stealing and colluding with financial predators, they must be severely punished according to law to make an example.

The compact connection of time is self-evident.

At this clean government work conference, Premier Li Keqiang focused on the importance of preventing and fighting corruption in the financial field: On the one hand, some risks have accumulated in the financial field, especially in non-performing assets, bond default, shadow banking, internet finance and other fields need to promote supervision with integrity to prevent corruption and risks. On the other hand, corruption in the financial sector should be resolutely investigated and punished. Corruption in the financial field is no small matter, which often causes significant direct damage to the interests of the people.

Deep pattern of financial violation

Who is the final “quilt cover road?

It seems that the professional and profound financial industry is not only about the temptation of huge interests, but also has high professional barriers-many small partners themselves do not understand those financial products, not to mention the “routine” behind financial products “. Therefore, once the Games of finance and power are played, risks and “viruses” will easily breed and spread in the vulnerabilities of the system.

Under the current economic situation, the risks in the financial field are already accumulating. However, behind corruption violations, it is often the arbitrage impulse to want overhead supervision and evade rules, which is bound to further enlarge the risks.

For example, an enterprise defrauds loans through “relationships” and then fails to pay off the money. This account becomes a non-performing asset in the bank. If the bank “turned a blind eye” to whether there were any problems in the process of issuing loans at that time, the non-performing assets might be written off as bad debts. Then, “the state pays the bill”-the loss is the interests of depositors and taxpayers. However, when such risks accumulate more and more, one side is the continuous loss of bank deposits through careless loans, while the other side is that it becomes very easy to cheat loans, and it is more difficult to curb the momentum of disengaging from reality to weakness.

For another example, some listed companies can not meet the listing conditions at all, but in order to “arbitrage” the listing, financial fraud, inflated profits and concealed expenses have created the illusion of prosperity. Even “a fake action on the left hand and right hand”, buy your own products, idle the funds between one account and another, and then “create” beautiful accounting statements. Finally, the IPO was successfully listed, and huge amounts of money were invested. Then, shortly after the listing, the performance changed. Stocks plunged sharply, and those who were locked up were retail investors who could not help themselves.

Don’t think these things have nothing to do with yourself as long as you don’t invest in stocks. Financial risks are highly contagious. Once financial risks break out, they may have a major impact on the real economy and even cause everyone’s livelihood problems. In recent years, the financial crisis happened around the world, all of which caused the local national economy to be hit hard, the enterprises further lost blood, the employment rate was difficult to maintain, and even serious social unrest occurred.

Once upon a time, I was indifferent to your sales promotion.

Can’t you afford the insurance today?

We can’t help asking, in the process of the above financial chaos, can’t the regulatory audit department really see the problem? Is there any possibility of being “PR? In this regard, I am afraid I also need to conduct a thorough investigation with the anti-corruption hand.

During Xiang Junbo’s tenure as chairman of the China Insurance Regulatory Commission, the insurance industry ushered in the biggest policy “bonus” period in history. A large amount of funds poured into the insurance market. For a time, the insurance company license itself became the best financing tool. At the same time, insurance asset management products (such as the famous “universal insurance”) are almost sold crazy in bank channels. However, due to the extremely high financing cost, these universal insurance can only pay high costs and make profits by “Fast-forward and fast-out” in the securities market and plundering the interests of small shareholders.

Therefore, on the one hand, insurance capital transfers benefits from related transactions with shareholders; On the other hand, it keeps raising cards in the capital market to attract small and medium shareholders to enter the market, and then raises “shipment”. No wonder Chairman Liu Shiyu of the CSRC complained bitterly that these “barbarians, goblins and harmful spirits”.

In fact, the fund pool formed by the misallocation of long-term and short-term funds and even the additional use of high leverage will directly lead to more funds leaving the real industry, enter this exciting capital casino. However, once the bubble bursts, the huge wealth will disappear again, which may enter some people’s pockets “unnoticed.

As a supervisor, the China Insurance Regulatory Commission is responsible for the ineffective supervision of insurance assets. Here is a logic called regulatory arbitrage. Financial products sold by banks, capital management plans of securities companies and insurance capital management products sold by insurance companies are actually a kind of thing in essence, which are all “wealth management for customers” for investment. The same sum of money, invested in banks, securities and insurance channels, needs to face different regulatory agencies and abide by different regulatory rules.

Then, if regulators are selfish and want to expand their power and influence (euphemistically called: developing the industry), the best way is to “raise your hand”. In this way, the market finds that banks are strictly controlled and securities are strictly controlled, but the road of insurance still works, and a large amount of arbitrage funds go into action without delay. Similar painful lessons have emerged in the history of capital markets.

The blackest under the light

Regulatory corruption is the biggest corruption

In the final analysis, it is still the sentence: regulatory corruption is the biggest corruption.

At the end of 2016, the registration of insurance assets attracted widespread attention in the society. Although the causes of the registration of insurance assets were complex and the purpose could not be generalized, some problems in the insurance industry were exposed and received attention from many parties. At the national insurance work conference held on January this year, Xiang Junbo also put forward the requirement of “The surnamed supervisor of the China Insurance Regulatory Commission”; However, as the top leader of the insurance industry, if he has corruption problems, how to correct the industry atmosphere?

Corruption leads to the relaxation of supervision. Even if the regulatory object violates the red line, it may become minor and minor, resulting in the red line being useless; In turn, it will hurt the authority of supervision, undermine the rules of the market and form a vicious circle.

It should be understood that financial corruption is also closely related to the unbalanced allocation of financial resources. In the link of resource allocation, rent-seeking under the “legal coat” is bound to inevitably grow. This is another feast of “treating public power as private capital.

Therefore, financial anti-corruption is first to oppose the abuse of public power, especially for those departments that hold the power of examination and approval, they should be strictly examined and the prevention and control should be put in front. Secondly, financial anti-corrosion should strengthen the construction of the system. If there are problems in the system, who will take the approval pen in his hand will often lead to corruption. Finally, financial anti-corruption needs to straighten out the functional relationship, improve the coordination mechanism, strengthen the regulatory synergy, and avoid regulatory arbitrage and political outpouring to the greatest extent, so as to fundamentally control the chaos of financial markets.

As Premier Li Keqiang emphasized at the fifth Clean Government work conference of the State Council, it is necessary to “severely crack down on illegal credit granting by banks, insider trading in the securities market and transfer of benefits, insurance companies taking out fees and other illegal acts, individual supervisors and company executives must be severely punished according to law for illegal acts such as self-theft and collusion with financial predators.” The leaders in the process of issuing bank loans batch that the stock market dealers had gone through the clouds and the “prophet first thought”, and the insurance capital was transferred to the situation that he used it to obtain excess profits. The next step may be the focus of thorough investigation.

As Xiang Junbo was examined by the organization, the supervisors had been “taken down”. Then who was the top executive of the company who was guarding the theft and who was the “financial giant”?

It seems that this financial anti-corruption campaign, which was launched in the name of “people” and related to the interests of the whole people, has just begun.

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Xiang Junbo fell: financial anti-corruption broke into a climax. Why is this a war to defend everyone’s interests? Financial anti-corruption caused a major case in the insurance industry on April 9. According to the website of the Central Commission for Discipline Inspection, Party secretary and principal of the China Insurance Regulatory Commission