Main points:
On January 25, the leading group office for state owned enterprise reform of the State Council held a special promotion meeting on the three-year action of state owned enterprise reform.
The meeting pointed out that the reform of state-owned enterprises should focus on improving efficiency, stimulating vitality, and promoting the comprehensive deepening and implementation of various measures of market-oriented mechanism. We should strengthen incentives. Make good use of the three-year action plan. China has medium and long-term incentive policies such as equity incentives for holding listed companies, equity and dividend incentives for state-owned science and technology enterprises, and excess profit sharing. The meeting also emphasized the promotion of more listed companies with more than 50% state-owned shares and the introduction of active shareholders holding more than 5%.
The two sessions of the provincial people’s Congress and the National People’s Congress have gradually closed, and the “report cards” of all localities in 2021 have been released one after another.
Combined with the data of local statistical bureaus and the contents of government work reports, the economic aggregate of many provinces has reached a new level, the main indicators are better than expected, and a good start of the 14th five year plan has been achieved. Among them, Guangdong ranks first with an economic aggregate of more than 12 trillion yuan, Hubei ranks first with a year-on-year growth rate of 12.9%, and Hainan leads the country with a two-year average growth rate of 7.3%. Taking stock of the transcripts of various places, “first breakthrough”, “new high” and “high-quality development” have become key words, and the characteristics of strong driving force and sufficient toughness of economic development continue to appear.
The work report of the provincial governments in 2022 emphasizes eight elements, which are summarized as follows: 1) local economic growth, employment and price targets are determined. 2) Expand effective investment and pay attention to “two new and one heavy”. 3) Stabilize traditional bulk consumption, develop new consumption formats, release the potential of counties and townships, and build characteristic commercial streets. 4) In the tone of “no speculation in housing and housing”, we will develop affordable rental housing and promote the “old reform”. 5) We will deepen the implementation of the innovation driven strategy, cultivate “specialized and new” small and medium-sized enterprises, and pay attention to the new economy. 6) Deepen reform, focusing on the reform of state-owned enterprises, optimizing the business environment and factor marketization reform. 7) Other key policies focus on pension, education, “three children”, “double carbon”, rural revitalization, etc. 8) Pay attention to the bottom line of financial risk and financial system risk. For details, please refer to the report “8 elements and 25 pictures to understand the local two sessions in 2022”.
Approaching the Spring Festival, local provinces have introduced measures to ensure supply and promote consumption. On the supply side, many provinces have introduced a series of measures to encourage large chain supermarkets and other enterprises not to close, close, raise prices and run out of goods during the Spring Festival. For service industries, they have introduced Spring Festival care activities and taken multiple measures to meet the service needs of consumers. On the demand side, carry out “consumption season” and “consumption Festival” activities in many places, guide business districts to carry out special activities, and enhance the festival consumption atmosphere. Some provinces have continued the activity of issuing “consumption vouchers” to stimulate consumption through Wuxi Online Offline Communication Information Technology Co.Ltd(300959) linkage consumption.
The CBRC working meeting in 2022 was held on January 24, and financial risks were mentioned many times. The meeting stressed that in accordance with the requirements of stability and seeking progress in stability, we should fully support the stabilization of the macro-economic market. We should persevere in preventing and resolving financial risks. We will continue to follow the basic principles of “stabilizing the overall situation, overall planning and coordination, implementing policies by categories and accurately dismantling bombs”, handle risks in the financial field steadily and firmly hold the bottom line of no systemic financial risks. We should resolutely prevent the disorderly expansion of capital in the financial field and set up “traffic lights” for capital in the financial field. In combination with the statements on risk prevention in the central economic work conference at the end of 2021, the work conference of the China Banking and Insurance Regulatory Commission in 2022 and the work report of local governments in 2022, the risk prevention should be accurate and multi-party cooperation, enhance the system concept, and focus on financial risks (bad debts, urban commercial banks, rural commercial banks, fictitious currency, etc.), enterprise debt risks (Governance of malicious arrears and evasion of debts) Hidden debts of local governments (safely resolve hidden debts), secondary risks of real estate, prevention of disorderly expansion of capital and other fields.
Central bank sun Guofeng said: we should keep the RMB exchange rate basically stable at a reasonable and balanced level. Sun Guofeng, director of the Monetary Policy Department of the central bank, wrote in China finance that this year, we should maintain the basic stability of the RMB exchange rate at a reasonable and balanced level, enhance the flexibility of the RMB exchange rate, and give play to the functions of exchange rate regulation, macroeconomic regulation and automatic stabilizer of balance of payments. We should strengthen expectation management, strengthen macro Prudential Management of cross-border capital flows, guide enterprises and financial institutions to establish the concept of “risk neutrality” and maintain the steady and healthy development of the foreign exchange market.
Risk tip: the epidemic situation repeatedly exceeded expectations, and the implementation of policies was less than expected.
