The Government Takes Measures To Support Cross-Border Electricity Supplier Development

Yesterday's meeting

It conveys a clear signal of steady growth again, and this time is aimed at the "three carriages" of investment, consumption and export that drive economic growth.

Steady investment:

Surplus financial funds for key construction

Promoting the co-ordinate use of financial funds was one of the main topics of the executive meeting of the State Council yesterday, and 8 related measures were introduced.

These include: - the funds for regional and departmental balances and the unused funds carried out for two consecutive years shall be restructured for key construction.

In less than two years, the carrying out of funds should speed up the budget implementation, and it can also be used in other urgent areas as required.

Starting from 2016, we should appropriately reduce the scale of the next fiscal budget for the regions and departments with larger financial stocks at the end of last year.

- establishing a dynamic adjustment mechanism that slows down the implementation of the project budget, and the same level of finance can be recovered at a certain rate for other purposes.

The special pfer payment should be cleaned up, and the allocation of funds and the right of project confirmation should be handed over to the local authorities.

We should strengthen overall coordination between departments and inter departmental funds so as to avoid duplication of expenditure and investment.

- putting the unused local government stock debt funds into budgetary management and co ordinate with new debt funds.

Government list and inventory management should be implemented. Government funds and state capital management budgets should be added to the general public budget.

- establishing a mechanism for balancing annual budgets and carrying out rolling financial planning in water conservancy, social security and other fields.

"This is the refinement of the" revitalize the stock ", which has made comprehensive provisions from the regional and inter departmental areas to the allocation of financial funds in the region and departments, with the purpose of hoping that fiscal policy can play a better role in stabilizing growth.

Morgan Stanley Huaxin securities macro research director Zhang Jun said.

He analyzed that, through the "recovery of the balance and pfer funds of regions and departments" and "appropriately reducing the scale of the next year's budget", the areas and departments with large financial stock funds will greatly promote the use of stock funds by various localities and departments, so that the rate of capital investment of fixed assets investment can be significantly improved from the financial perspective.

In addition, "clearing the integration of special pfer payments, assigning capital allocation and project determination rights to the place, allowing the local to make a preliminary trial on the basis of co-ordination", also reflects that the central authorities are giving greater power to the local governments in the allocation of funds and the right of project decision in revitalizing the stock.

This year's central policy keynote is "active fiscal policy and prudent monetary policy". Although monetary policy is loosely oriented in practical operation, the flow mechanism of monetary policy has been precipitated in the financial system because of the poor pmission mechanism of monetary policy.

The active fiscal policy is subject to the decline of the two level revenue from the central and local governments, especially the central government's actions to clean up and rectify the debts of local governments.

Therefore, Zhang Jun believes that, as far as active fiscal policy is concerned, since there is no breakthrough in total volume, we can only make an issue on the allocation structure and efficiency of funds, which is also consistent with the guiding principle of "invigorating stock and making good use of increment" advocated by the Central Committee for a long time.

Expanding consumption: expanding consumption finance to the whole country

The executive meeting of the State Council decided to liberate market access and expand the pilot projects of Consumer Finance Companies in 16 cities to the whole country.

"Development

The focus on serving the middle and low income groups is conducive to the release of consumption potential and the upgrading of consumption.

Premier Li Keqiang has spoken frankly about the purpose of doing so.

The Consumer Finance Companies is a non bank financial institution established in People's Republic of China by the CBRC, which does not absorb public deposits, and provides loans for the purpose of consumption for the residents in China within the principle of small sum and decentralization.

In 2010, the pilot project was launched, and the pilot cities were initially and gradually liberalized. The initial pilot cities were four locations in Beijing, Tianjin, Shanghai and Chengdu, and four institutions were set up for pilot projects, namely, consumption of northern silver, consumption of JIT, consumption of Bank of China and consumption of Jincheng.

In November 2013, the CBRC revised the pilot management method of Consumer Finance Companies, and added 10 cities such as Shenyang, Nanjing, Hangzhou, Hefei, Quanzhou, Wuhan, Guangzhou, Chongqing, Xi'an, Qingdao to participate in the pilot work of Consumer Finance Companies.

In addition, according to CEPA related arrangements, eligible Hongkong and Macao financial institutions can set up Consumer Finance Companies in Guangdong (including Shenzhen).

The principle of "one place, one family" should be expanded in the pilot project and a total of 12 new pilot institutions should be added.

Consumer Finance Companies is considered to give full play to its characteristics of "small, fast and smart". By developing extensive cooperation with many merchants, it has developed unique personal consumption loan products, meeting the needs of different groups and enriching the types of financial institutions in China.

The executive meeting of the State Council clearly stated that the Consumer Finance Companies approval authority should be put under the provincial level departments to encourage qualified private capital, domestic and foreign banking institutions and Internet + enterprises to launch Consumer Finance Companies, mature one and approve one.

Provide unsecured and unsecured microfinance to consumers, standardize operation and prevent risks, so that Consumer Finance Companies and commercial banks will compete and complement each other.

Statistics from AI consulting show that in 2013, the scale of consumer credit in China reached 13 trillion, an increase of 24.7% over the same period last year. AI consulting expects that the scale of consumer credit in China will reach 27 trillion and 400 billion in 2017, and the potential of consumer finance is still unlimited.

It is understood that in addition to the Bank of Beijing and the Bank of China, the listed companies that set up Consumer Finance Companies at present also have Su Ningyun business, business treasure and so on.

Promoting foreign trade:

Take measures to support cross-border electricity supplier development

It is a region with a strong policy. The executive session of the State Council once again made bricks and mortar for it.

The conference put forward four measures to optimize the customs clearance process and implement cross border.

We should encourage foreign trade comprehensive service enterprises to provide customs clearance, warehousing, financing and other services for cross-border e-commerce, and encourage cross-border e-commerce retailers to expand their marketing channels through overseas warehouses and experiential shops, so as to cultivate their own brands and self built platforms.

Analysts pointed out that to promote the healthy and rapid development of cross-border e-commerce, "

"Trade + foreign trade" helps to expand consumption, promote the development of an open economy, and create new economic growth points.

This year, China's foreign trade situation is still not optimistic. In the first five months, the export growth rate was negative for four months.

In the throes of domestic industrial upgrading and international market iteration, the cross-border electricity supplier is expected to become a new engine of export trade because of its simple and accurate innovation mode.

Ministry of commerce data show that last year cross-border e-commerce business turnover reached 3 trillion and 750 billion, an increase of 39% over the same period, showing a rapid growth trend.

It is estimated that by 2016, the annual growth rate of China's cross-border electricity suppliers will exceed 30%, and the volume of pactions will increase to 20% of total volume of imports and exports.

To support cross-border electricity supplier development, a number of policies have been introduced this year.

At the beginning of May, the State Council issued the opinions on accelerating the development of e-commerce. It clearly pointed out that this year, we will actively carry out the pilot project of comprehensive reform of cross-border electricity providers, and study and formulate guidance for promoting the development of cross-border e-commerce.

It is reported that the guidance of the Ministry of Commerce on the promotion of cross-border e-commerce development is being worked out and will soon be introduced.

At that time, cross-border electricity providers will usher in a series of "red envelopes".