Opinions held by Dong Wenbiao Shall be Common Understanding of all Bank Bosses

2010-3-15

But the problem is that if it is so easy to get capital funds through refinancing in the stock market, then it will endanger the capital fund constraint mechanism, and there will be risks of future credit blind expansion, which is really worrying. For stock market investors, such large refinancing will impact Shanghai Stock Exchange and Shenzhen exchange to result in drastic fluctuation of the stock market and frustrate the market confidence. 

Therefore, if what Dong Wenbiao, chairman of Board of Directors of CMBC said could be accepted by bank bosses, Shanghai Stock Exchange and Shenzhen Stock Exchange, and millions of investors will be really lucky!
It is imperative to build and earnestly practice strict constraint mechanism. Of course, the purpose shall not be to constrain commercial banks to refinance in the stock market at their own will, as observed by some people. The Author holds the opinion that it is necessary to strengthen the mechanism of supplementing capital funds with profits when developing policies and rules, and make those who expand blindly and cause financial risks to take responsibilities. At the same time, we should fortify supervisions of public opinions and give more pressures on the random refinancing behaviors on the stock market.

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