is not confined only to this. public listing is only one stage in the process of the reform. now that the state is capable of injecting capital into state - owned banks, listing is not mainly aimed at raising funds or at establishing incentives. the ultimate target of reform rests in the establishment of a whole set of market system of incentives and constraint. emphasis is placed on the investors ’ interests. it is aimed at completely shattering the “ quasi - bureaucratic system ” of state - owned commercial banks, at changing the operational targets which are set based on the officialdom, and at changing state - owned commercial banks into real market participants through rational incentives mechanism based on performance and complete risk control and capital constraint, as an important step, the key to listing lies in the resolution of some long - standing and difficult problems, in particular, the problem of administrative constraint from other government departments. for instance, taxation on commercial banks. for a long period of time, there have been some regulations of taxation on commercial banks not in line with the law of market economy. the taxation authority also recognize the fact. as there are too many taxes and tax rates to be reformed, there shall be a sequence. it is very difficult to place on the agenda the reform of the tax arrangement for state - owned commercial banks before they are really confronted with the capital market and public investors. with the count - down plan of listing for the state - owned commercial banks, the resolution of these problems will be placed on the agenda. the same goes with the reform of personnel, benefits, social security, operation autonomy of the state - owned banks. only when state - owned commercial banks are confronted with the urgency of going public will coordination and synergy by various government departments and corresponding reforms become a priority. in fact, without enough outside pressure, no competent authorities will take initiative in giving up their power and the process of reform might be protracted. from the perspective of corporate governance in the broad sense, the operation of commercial banks is closely related to public interests and calls for enhanced transparency and strengthened monitoring by the general public. through share - holding reform and going public, state - owned commercial banks must meet the requirements of information disclosure as a listed company. listing creates the condition for public monitoring in the real sense. the importance of recapitalization by the government, therefore, lies more in establishing a financial intermediation efficient in utilizing savings rather than in polishing the balance sheets of banks. in a more substantive sense,

pan gongsheng : global financial cycle - trends and implications keynote speech by mr pan gongsheng, deputy governor of the people's bank of china and safe administrator, at the 14th lujiazui forum " global financial openingup and cooperation : new drivers for economic recovery ", shanghai, 8 june 2023. * * * distinguished party secretary chen, mayor gong, president rousseff, and dear guests, good morning! the topic of my speech today is " global financial cycle : trends and implications ". since the 1990s, the financial indicators such as asset prices, credit growth, bank leverage ratio, and cross - border capital flows have resonated with each other across the world, especially in some developed economies such as the united states and europe. over the medium and long term, financial activities witness obvious periodic fluctuations. since the 1990s, financial markets have experienced three major downturns, namely the dot - com bubble burst in 2000 - 2002, the global financial crisis in 2008 - 2009, and the plunge in the global stock, bond and foreign exchange markets in 2022. the financial indicators such as stocks, bonds, and exchange rates together constitute a financial conditions index ( fci ) that reflects the overall financial situation, and such an index has undergone rapid and sharp tightening during these three downturns. because of the dollar's dominance in the international monetary system, the federal reserve ( fed )'s monetary policy has become an important driver of the global financial cycle. the fed's three rounds of interest rate hikes respectively in 1999 - 2000, 2004 - 2006, and 2022 have led to the three downturns in the global financial cycle. in 2022, the global stock, bond and foreign exchange markets suffered heavily. the global stock market fell by about 20 percent for the whole year, bonds also saw a double - digit decline, cross - border capital flows dropped sharply, and bank credit standards were generally tightened. these are all typical characteristics of a downturn in the global financial cycle. in 2022, the fci of the united states rose from an extremely low level in history, and the tightening regarding degree and speed was second only to that of the global financial crisis in 2008. the reason for this is fed's monetary policy, which experienced drastic tightening after drastic easing. whenever financial conditions in the united states are tightened, some emerging economies with relatively fragile economic fundamentals and high dependence on external financing will face massive capital outflows