Economic Transformation Will Not Stimulate The Economy On A Large Scale

China's strong leadership has the ability to continue to promote economic transformation, and says it will not engage in large-scale economic stimulus.

In an interview at the Davos World Economic Forum on Wednesday, Fang Xinghai said that global investors and enterprises should pay more attention to the long-term and stable development of China's economy rather than short-term growth.

This week's latest statistics show that China's GDP grew by 6.9% in 2015, the lowest growth rate in 25 years. In addition, China's GDP grew by 6.8% in the four quarter of the year, a 1.6% increase in the ratio of annulus to the previous year. Despite the decline in economic growth last year, China's economic structure continued to optimize and upgrade, of which consumption contributed significantly to GDP's contribution to 66.4%.

　　 Fang Xinghai "The biggest risk of China's economy is not slow growth, but by stimulating and maintaining unrealistic high growth and eventually collapsing," he said. He pointed out that in the next few years, "speed up". Supply side The structural reform will help transform the consumer oriented economy.

Xi Jinping set the tone for the next five years in early November. Economic growth At the time, it was said that a certain degree of economic slowdown would be allowed in dealing with the difficult tasks of "resolving overcapacity", but in any case, it could not threaten the goal of "economic growth not less than 6.5% by 2020".

Fang Xinghai was also interviewed by CNN reporter and asked again, "do you think melting is a wrong decision?" he said that this is not a decision suited to the Chinese market. The regulator admits this point. "We should administer the mistake of admitting mistakes to regulators."

This year, the scale of local debt replacement will increase in 2015. Bloomberg quoted an anonymous insider, saying that the total amount of new and replacement local debt issued in 2016 is expected to be around 6 trillion. The scale of the final issue may also be adjusted.

In terms of monetary policy, the Central Bank of China clearly stated that it would not be too loose enough to impede market clearing. Despite the tight market liquidity at present, the central bank has not been as precise as expected. Instead, it will support more than 600 billion yuan of funds through MLF, SLF and PSL operations. Ma Jun, chief economist of the central bank's Research Bureau, pointed out that the move has an alternative effect on the reduction.

The global market turmoil is continuing. We have always advised that we should not rush to "pick up a drop in the knife" and "be patient."

However, Fang Xinghai also said that China will not allow the economic growth rate to fall too fast, which means that in 2016 the government's fiscal and monetary policies will continue to maintain "moderate support".