How To Adapt To The New Normal Of China'S Economic Development?

The central economic work conference was held in Beijing recently. Xi Jinping delivered an important speech at the meeting, summing up the economic work in 2015, analyzing the current domestic and international economic situation, and deploying the 2016 economic work. The key point is to implement the "13th Five-Year" planning proposals, promote structural reform and promote sustained and healthy economic development.

In his speech, Li Keqiang expounded the orientation of macroeconomic policy next year, and laid down the key work of economic and social development next year, and made a concluding speech.

The meeting stressed that

Structural reform is a major innovation that adapts and guides the new normal development of the economy. It is an active choice to adapt to the new situation of the comprehensive national strength competition after the international financial crisis and is an inevitable requirement to adapt to the new normal situation of China's economic development.

A prudent monetary policy should be flexible and moderate, so as to create an appropriate monetary and financial environment for structural reform, reduce the cost of financing, maintain a reasonable and sufficient liquidity and increase the total amount of social financing, expand the proportion of direct financing, optimize the credit structure, and improve the exchange rate formation mechanism.

Industrial policy must be accurate, so we must accurately position the direction of structural reform.

We should promote agricultural modernization, speed up the construction of manufacturing power, speed up the development of service industry and improve the level of infrastructure networking, and so on, and promote the formation of new growth points.

We must persist in innovation drive, focus on activating stock, strive to make up short board, speed up green development, and develop the real economy.

Main points

1, 2016's five major economic tasks: capacity production, inventory elimination, deleveraging, cost reduction and compensation.

2, structural reform of supply side: promoting structural reform of supply side is a major innovation to adapt to and lead the new normal development of the economy. It is an active choice to adapt to the new situation of comprehensive national strength competition after the international financial crisis, and is an inevitable requirement to adapt to the new normal situation of China's economic development.

3.

A prudent monetary policy should be flexible and moderate, so as to create an appropriate monetary and financial environment for structural reform, reduce the cost of financing, maintain a reasonable and sufficient liquidity and increase the total amount of social financing, expand the proportion of direct financing, optimize the credit structure, and improve the exchange rate formation mechanism.

4, fiscal policy: active fiscal policy should be intensified, tax reduction policies should be implemented, and the fiscal deficit rate should be increased at a phased stage. At the same time, the necessary fiscal expenditure and government investment should be appropriately increased, and at the same time, it is mainly used to make up for the reduction of tax revenue brought by tax reduction and to protect the responsibility of the government.

5.

The right direction of industrial policy is to accurately locate the direction of structural reform.

We should promote agricultural modernization, speed up the construction of manufacturing power, speed up the development of service industry and improve the level of infrastructure networking, and so on, and promote the formation of new growth points.

We must persist in innovation drive, focus on activating stock, strive to make up short board, speed up green development, and develop the real economy.

6, real estate: in order to speed up the urbanization rate of household registration and deepen the reform of housing system, we need to speed up the citizenization of migrant workers and expand effective demand to open up supply and demand channels, digest inventory and stabilize the real estate market.

It is necessary to encourage the real estate development enterprises to adjust the marketing strategy according to the market rules, appropriately reduce the price of commodity housing, promote the annexation and reorganization of the real estate industry, and improve the concentration degree of the industry.

Outdated restrictive measures should be abolished.

7, prevent and defuse financial risks: we must strengthen all-round supervision, standardize all kinds of financing activities, carry out special rectification of financial risks, resolutely curb the spread of illegal fund-raising, strengthen risk monitoring and early warning, properly handle risk cases, and firmly defend the bottom line of systemic and regional risks.

8, financial reform: speed up the reform of the financial system, and form a stock market as soon as possible, with a complete financing function, a solid foundation system, effective market supervision, and full protection of investors' legitimate rights and interests. We should study and put forward the reform plan of the financial regulatory system, accelerate the reform of the banking system, deepen the reform of state-owned commercial banks, and accelerate the development of green finance.

9, opening to the outside world: we must do a good job in the implementation of the "one belt and one way" construction, and give full play to the financing support role of the institutions such as Asian investment bank and Silk Road Fund.

10, aim: stick to the goal of building a moderately prosperous society in an all-round way, firmly grasp the primary task of development, do not relax, scientifically determine the main objectives of economic and social development, grasp the balance between steady growth and structural adjustment, stabilize and improve macroeconomic policies, and increase support for the real economy.