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Zheng Xinli: China's investment structure is serious and unreasonable, showing "three high and three low"

Release Date:2017-03-15


       Mr. Zheng Xinli, vice chairman of the China International Economic and Exchange Center and former deputy director of the CPC Central Committee's Policy Research Center, gave a speech at the 16th China Listed Company's Top 100 Summit, entitled "Current Economic Trends and Enterprise Business decision-making "keynote speech. Zheng Xinli that the current economic operation in China is still in a reasonable range, the main problem is the investment structure is serious and unreasonable, showing the "three high three low" situation.
       In Zheng Xinli view, the investment structure of the "three high three low": First, the state-owned investment growth rate, the slow growth of private investment. Private investment is a sign of economic vitality, low growth in private investment shows that economic growth is lack of vitality; Second, real estate investment growth, manufacturing investment, especially equipment manufacturing investment growth is slow. Manufacturing investment is a sign of economic growth potential, manufacturing investment does not increase, lack of economic growth potential, especially a large influx of funds into the real estate market, will create a serious bubble. Third, overseas investment and domestic investment 冰火两重天. Foreign investment in the first half of 67% growth, such as the surge is worth our attention.
       Zheng Xinli that the next few years China's reform and development will bring three opportunities for enterprise development.
       The first big opportunity is the four investment opportunities brought about by structural transformation. First, through the establishment of urban and rural integration of the new system, to achieve the integration of urban and rural development opportunities. Second, through the investment system reform, increase the supply of public goods investment opportunities. Third, through the tax reform, the full implementation of the business increase, for the development of tertiary industry to bring a better policy environment. Fourth, through independent innovation, to promote industrial upgrading, from the past over-reliance on material resource consumption to rely mainly on technological progress, improve management and improve the quality of the workers up the track.
       The second largest opportunity is the opportunity brought by the reform of state-owned enterprises. The Third Plenary Session of the Eighth Central Committee of the Communist Party of China on the reform of state-owned enterprises, private capital into the state-owned enterprises has brought a rare opportunity. Zheng Xinli pointed out that state-owned enterprises to absorb private capital shares, not necessarily to pursue 51% of the equity and consolidated statements, the key is to diversify the shares on the basis of the formation of a standardized and scientific governance institutions.
       The third opportunity is to reduce the opportunities for corporate debt. Due to the lack of equity financing channels, the average debt rate of our enterprises is above 80%, and we should strive to open up multiple direct financing channels and reduce the corporate debt rate. Now the stock market downturn, almost lost the financing function, focusing on the development of various funds through the decentralized funds together, the equity investment, for the existing debt rate is relatively high enterprises, through asset securitization, to raise capital , Get rid of the debt burden.