The Government Intends To Push Forward Local Debt Issuance Pilot &Nbsp; Crack Down On Financing Difficulties For Shoe Companies.

It is reported that Shanghai, Zhejiang, Guangdong and Shenzhen are allowed to carry out the local government's own initiative. Issuing bonds 。 Since the local debt has been issued by the Ministry of Finance and implied the central government's credit, the local government's own debt means that the main body credit is totally local government credit, which is an appropriate solution to the local debt problem. Under the current macroeconomic background, it is in line with the anticipation of the industry's "hyperactive finance and less money" to a certain extent, and it also strengthens the market's expected easing of policy.

The policy is not without warning. Prior to that, the Zhejiang provincial finance department has been in accordance with the requirements of the Ministry of finance, the provincial government in 2011. Bond limit They are allocated to cities and counties, and cities and counties report the items according to the allocation of bond quotas. It is almost clear that local governments will have more autonomy in issuing bonds.

The local government issued its own debt issue, which has profound implications. First, there is a slight difference between the issuing body and the central government. The pilot area is no longer issued by the Ministry of finance.

Secondly, the development of local economy is quite different. In accordance with the market pricing principle, the developed areas and low debt areas can enjoy high credit rating, and the issuing cost is low, otherwise the cost is high. Once again, the power of debt management is still in the central part, but allowing local governments to issue their own bonds, and then may transition to independent issuing bonds, marks a further step for local governments' independent financing. Finally, the more developed economy, better financial conditions and more financially marketable areas are more suitable for pilot projects.

More importantly, the pilot of local governments issuing bonds voluntarily is an important transformation of the state's financial management ideas, which is intended to alleviate the tight local finances and solve the local debt problems that plagued investors for a long time. The audit results of the local government debt issued by the Audit Commission in June showed that as of the end of 2010, the balance of local government debt at three levels in cities and counties nationwide was about 10 trillion and 700 billion yuan. Among them, the debt of the financing platform is about 4 trillion and 970 billion yuan. From the deadline, 2011 and 2012 are the peak of debt service and interest rates, and the continuous tightening of real estate regulation and monetary tightening has led to the increasing financial revenue of local governments since 2010. The local government's "wallet", which is accustomed to relying on land finance, has shrunk dramatically, and new financing channels are urgently needed to ensure a series of "people's livelihood" projects including affordable housing.

Of course, whether there is a deeper policy direction in the pilot stage, we should observe the next specific measures. The three quarter economic data show that the overall economic growth is still stable. However, looking ahead, the "three carriages" have hidden worries. Although credit risk exposure in some areas is still controllable, the social impact and transmission effect can not be underestimated. This calls for a fine adjustment of the pre tightening macroeconomic regulation and control policy. The pressure of high inflation limits the space for monetary easing, and the partial problem of financial governance can not rely on simple and extensive "big blood transfusion". There is a lot of monetary policy constraints. It is logical to make reforms in the financial sector. The institutional reform dividend is the premise for ensuring sustained and steady growth of China's economy. The recent comprehensive financial reform and local government's own debt issuance is an important step. For the current situation slightly depressed, financing appears bottleneck For Wenzhou, it may be a timely rain. It should be considered as a sedative for small and medium-sized shoe enterprises in Wenzhou. However, the implementation of local independent issuing rights does not mean that the small and medium-sized shoe enterprises will be able to take refuge in the short term. But the effective adjustment of the policy will surely be a booster for the healthy and orderly development of the market, and the guiding principles and policies of Wenzhou's small and medium-sized shoe enterprises are in policy. Transformation and upgrading In practice, the haze of the injured city is just around the corner.