On September 13, the second China Financial Industry Annual Conference and the "Topology Award" ceremony hosted by Finance Association were held in Lujiazui, Shanghai. Representatives from dozens of institutions in the banking, insurance, trust, and wealth management fields, totaling more than 200 people, gathered together to have lively discussions and in-depth exchanges on the theme of "Exploring a New Stage of Financial Development".

At the roundtable conference, Pang Ke, Deputy General Manager of the Corporate Finance Headquarters of CM Bank, shared wonderful insights on "How the Five Articles Will Reshape the Financial Industry".

Pang Ke believes that the five articles have changed commercial banks in terms of business model and logic. From the perspective of financial history, every change in commercial banks is based on technological revolution and development of productivity. Looking at the macro environment of China's banking industry, China has basically completed the industrialization process, and the urbanization rate of permanent residents has reached 66%. The economy has transitioned from high-speed growth to around 5% growth. In this process, the five articles are closely related to each other. They aim to provide financial services to entities and inject new momentum into improving total-factor productivity.

Regarding green finance, Pang Ke believes that "Green finance focuses on environmental benefits and carbon reduction, which is a guarantee for sustainable development of the industry and has broad prospects in the future." He presented several viewpoints on green finance.

First, clarify the development positioning. Commercial banks are the main driving force for the development of green finance in China. China has become the world's largest market for indirect green financing. In 2023, the green loan balance in China will exceed 30 trillion, with a fast growth rate of over 30%. CM Bank has made green finance a strategic direction and launched a five-horizontal-seven-vertical green financial service system. The balance of green financing has accelerated growth, with the in-house green loan exceeding 560 billion and the group's total green financing exceeding 1 trillion.

Second, understand the differences in the global green finance market and learn from each other's strengths. According to Pang Ke, the main green finance markets in the world are currently China, the United States, and the European Union. The United States adopts a bottom-up principle, while China and the European Union adopt a top-down catalog system. The European Union encourages commercial banks to actively participate and has established the world's largest carbon trading market. By using market mechanisms to price "environmental premium and transformation costs" through carbon pricing, it guides more capital into the green sector. We should learn from their advanced experience.

Third, it is necessary to base the development strategy on a clear understanding of the national conditions of China. In our country's carbon emission structure, the energy sector and the manufacturing industry have the highest proportion of carbon emissions. The transformation of energy and the energy-saving and carbon reduction in manufacturing are the main battlefields for China's green finance. He mainly focuses on three dimensions: first, the transformation path is determined by differences in resource endowment. The transformation of energy is closely related to a country's resource endowment. CM Bank considers the establishment of a new energy system from the perspective of industry specialization, integrating the "source-network-load-storage" solution model. Second, effective institutional support from the government is crucial. Pay attention to the release of vitality in the liberalization of the electrical utilities market. Third, he firmly believes in the market force. CM Bank has broken through 3 million corporate customers and persisted in working with customers, giving full play to the three major functions of green finance resource allocation, risk prevention, and market pricing.

In the context of the development of digital finance, Peng Ke believes that there is a gradual process for the development of digital finance. In reality, many enterprises have not yet completed informatization. From information to data, and from data to becoming a production factor, there is a continuous evolution process. Banks are also constantly enhancing their capabilities to adapt to the challenges and opportunities of the digital age. In the future, commercial banks and customers cannot completely detach. "The best relationship between banks and enterprises is to always serve the real economy and maintain a long-term presence."

Peng Ke believes that in this process, the focus is on serving the industrialization of digital technology and the digitization of industrial economy. CM Bank invests 3.5% of its revenue in technology development, accumulating rapidly in the field of financial technology, and is full of expectations for the chemical changes brought about by the transformation of the financial and industrial ends in the digital age.