With the BRICS Leaders Summit, the APEC meeting, and the frequent diplomacy of Chinese leaders, the Fortaleza Declaration, the “New Silk Road Economic Belt†and the “Maritime Silk Road†are enough to change the future development of China’s economy. The important strategy of the pattern is constantly presented to the world. Although the "Chinese version of the Marshall Plan" has not been officially confirmed, we can see from the above important strategies. Why is this important step in the Chinese economy's ability to go to excess capacity and promote the internationalization of the renminbi? How should it be implemented? In my book "Lang Xianping: A Hot Spot for People", I have thoroughly analyzed this important issue of the era from the macroscopic to the microscopic surface. In the case of internal and external troubles, how can private capital that flows out of the manufacturing industry be preserved and value-added? According to my observations, a small part of them have become the principal of private lending, and a larger part has flowed into the real estate market. So we have seen that in the past 10 years, our house prices have "suddenly skyrocketed"; and the 43 real estate control policies introduced by the government here are not feasible. why? Because the root cause of the property market is in the manufacturing crisis, more precisely, private enterprises can't survive. Triple Outlet Faucet,Laboratory Triple Outlet Faucets,Triple Outlet Tap Grey,Laboratory Sink Faucet Grey NARWILL IMPORT&EXPORT CO.LTD , https://www.narwill.com
This has evolved into a key proposition that saving manufacturing can save us in the bad real economy and the real estate industry. How to do it? I think the key entry point is the improvement of the business environment, and the most effective way to do this is to cut taxes. In 2011, Shanghai took the lead in piloting the change of business tax to VAT. In April 2013, the State Council decided to further expand the pilot scope of business tax to VAT. It is unfortunate to tell you that our tax reform does not give private enterprises much benefit. According to my research, the Shanghai battalion reform has basically not played a major tax reduction effect on small businesses with an annual turnover of 60,000 yuan to 800,000 yuan; between 800,000 and large enterprises, so-called small and medium-sized enterprises, They basically don't get any benefits. So who is the biggest beneficiary? It is a state-owned enterprise or a large-scale enterprise such as Eastern Airlines, Haibo Shares, and Jinjiang Investment.
Let me talk about the people. In June 2013, “money shortage†swept our commercial banking system. Why is there a "money shortage"? The obvious statement is that the central bank refused to inject liquidity into the banking system in the first place as in the past, resulting in the lack of money in the hands of commercial banks. But isn't our M2, which has expanded to 100 trillion yuan, not enough for market circulation? Tell everyone, if this financial resource is reasonably distributed, it is absolutely more than enough. But the reality is that because of large-scale investment plans and shadow banking channels such as trusts, bank loans have flowed into “iron, public, and infrastructure†construction projects, local government financing platform companies, state-owned large enterprises, and even real estate developers. what's the result? Once the funds are involved, it is generally difficult to return in the short term, and even the risk of bad debts may arise. When the monetary policy is tight, if the central bank does not rescue, the commercial banks will make a "money shortage."
From this point of view, the "money shortage" is a "trick" between the central bank and commercial banks. It is difficult for private enterprises and ordinary people to participate in it, but the panic and crisis caused by the "money shortage" is "shared by the whole people." What do you mean? The common people first worried that their money in the bank could not be obtained. At the same time, they worried that if the banking system that is the heavyweight of the Chinese stock market collapsed, they would be guilty of the fish. This is the sorrow of being a "second-class citizen". There is no right to participate, but it must bear the consequences. And frankly speaking, our people have always been insecure in terms of asset preservation.
With regard to social assets, I must clarify with you a common misunderstanding here that our ordinary people are really not as rich as the legend. Guo Shuqing, who served as chairman of the China Securities Regulatory Commission in June 2012, said at the Lujiazui Financial Forum that China’s savings rate is 52%. However, in fact, our deposits are very unevenly distributed. The ordinary people who account for 90% of the population have an average deposit of only 7,000 yuan per person. As citizens of the world’s second largest economy, why are the deposits of most people so small? Because the first does not have enough sources of income, the second no good investment channel is specifically for the ordinary people, let them realize the money to make money.
In such an embarrassing and cruel situation, we have ushered in stock market reforms. I have repeatedly stressed in the past that the US government has benefited from the people who buy stocks by building a healthy stock market and realizing "hidden wealth in the people." So how do we do stock market reforms? I think that compared with the establishment of a perfect stock market system, our SFC is more inclined to increase the strength of the control. I must remind our government that under the circumstances of the CSRC's own limited capacity, without changing the system that causes the distortion of the stock market supply and demand structure, strict control is actually a disorder. What is needed in our stock market? It is an effective mechanism for allowing stocks to move forward and fall freely. It is a long-term mechanism that can completely eliminate insider trading and force company dividends. Only these policies can really help the people to benefit from investment.
Another sequel to the long-term bear market of the stock market is that our private capital is desperate to find investment opportunities. For example, when the global gold price plunged, the people hope to buy through the “bottom-hunting†to realize the preservation and appreciation of assets. This drama happened in April 2013, and the media gave it a resounding name called "China Aunt vs. Wall Street." The end result is that the veteran Wall Street shorts gold success, and many of our people have experienced the operation level of a big international investment giant at the price of real money. However, I am more concerned about whether the “second-class citizens†in the domestic financial market can gain some investment experience; whether our government really only plays a role in this matter, and does not derive anything from it that is beneficial to China’s financial industry. New thinking in reform.