Apparel Industry Integration Meets Policy Dividends

The CPC Central Committee and the State Council issued the "opinions on deepening the reform of investment and financing system" (hereinafter referred to as "opinions").

The opinions put forward that we should further pform the functions of the government, further promote decentralization, decentralization and management, optimize service reform, and establish a new investment and financing system, which is to improve enterprise's independent decision-making, smooth financing channels, functional pformation, government behavior norms, effective macroeconomic regulation and effective protection of the rule of law.

The publication of the opinion includes

What is the impact and significance of traditional industries and private enterprises? What are the advantages and opportunities?

The purpose of investment and financing reform is to boost private investment confidence.

First of all, we must pay attention to the time point issued by the opinion and select it after China's economic semi annual report.

China's overall economy remained stable throughout the first half of the year, but the growth rate of fixed asset investment continued to fall, especially in private investment.

From January to June this year, the private investment in fixed assets was 158797 billion yuan, which increased by 2.8% in nominal terms, and the growth rate was 1.1 percentage points lower than that from January to May.

The proportion of private fixed assets investment in fixed assets investment in the country is 61.5%, which is 3.6 percentage points lower than that in the same period last year.

Steady growth is the key to stable investment. The decline in private investment is worrying China's economic growth. According to statistics, the private economy has created about 60% of GDP in recent years, about 80% of the social employment, and more than 50% of the fiscal revenue, so the government has been highly concerned about this matter.

One of the fundamental reasons for the decline in investment is that the rate of return on investment has declined, making it harder and harder to make money.

The private economy is more market-oriented, more flexible, more sensitive to investment income and closer to short-term investment. The decline in investment growth is a direct response to the lack of confidence in private investment.

The general purpose of "opinion" is through policy guidance and system.

And so on, to raise the investment confidence of private enterprises, stimulate the power and vitality of social investment, and enable private investment to invest, dare to invest, invest and invest.

The government is trying to put all the roles of investment and financing sides in the correct position.

The opinion points out that there are still some problems in China's investment and financing management system. The main problems are: decentralization and decentralization are not coordinated and not in place, and the status of investment entities needs to be further established. Financing difficulties of investment projects are more prominent and the financing channels need to be further smooth. Government investment management needs to be innovated, guidance and driving role need to be further developed; decentralization and supporting system construction are not synchronized; post process supervision and process services need to be strengthened; investment legal system construction is lagging behind, and the level of rule of investment regulation needs to be improved.

The opinions put forward four requirements for the reform of investment and financing system: first, we need to scientifically define and strictly control the scope of government investment, treat all kinds of investment entities equally, establish the status of investment entities, relax investment in social investment, stimulate private investment potential and innovative vitality.

We should give full play to the guiding role and magnifying effect of government investment and improve the cooperation mode between government and social capital.

Two, we need to put the foothold of investment management into service for enterprise investment activities, implement management in service, and realize service in management.

We should pay more attention to beforehand policy guidance, regulatory supervision and process services after the event, innovate the service mode, simplify the service process and improve the comprehensive service capability.

Three, we need to open up investment and financing channels, broaden the sources of funding for investment projects, fully tap the potential of social capital, make more savings into effective investment, and effectively alleviate the financing difficulties of investment projects.

Four, the reform of investment and financing system should be linked to the structural reform of supply side and the reform of finance, taxation, finance and state-owned enterprises.

From the above point of view, the focus of investment and financing reform is to establish the status of enterprises as the main body of investment.

To define and strictly control the scope of government investment, government investment should only be invested in public sectors such as social welfare services, public infrastructure, agricultural and rural areas, ecological environment protection and rehabilitation, major scientific and technological progress, social management, national security and so on.

The position of the government from the past investment and financing decision-makers, managers and even investment entities has been pformed into the role of supervision, service and governance, so that investors can return to the market and return to enterprises.

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Accelerated pace of direct financing reform

Putting the role of investment and financing parties in a correct position and establishing enterprises as the main body of investment and financing, it can be said that from the top level system design, they provide protection for enterprises' investment and financing confidence, give enterprises "sense of security", let enterprises dare to vote and invest, but how to give enterprises real return on investment, let enterprises have the sense of "gain" of investment and financing, let enterprises invest and vote? This is another important point of the opinion, that is, increase the combination of real economy and financial market and capital market, improve the efficiency of financial support for the real economy, vigorously develop the direct financing market, and solve the long-standing problem of financing difficulties of private enterprises.

The opinions put forward several direct financing modes.

First, rely on the multi-level capital market system, broaden the financing channels for investment projects, support asset securitization backed by real economic activities, revitalize the stock assets, optimize the allocation of financial resources, and better serve investment and industry.

The two is to optimize the direct financing of investment projects in energy, pportation and other fields combined with the reform of state-owned enterprises and the innovation of mixed ownership mechanism.

Three, we should increase financial support for seed and start-up investment projects in various ways, and provide targeted financing services such as equity, debt and credit.

Four, we should increase innovation, enrich bond varieties, further develop corporate bonds, corporate bonds, non-financial corporate debt financing instruments, project income bonds, etc., and support key areas of investment projects to raise funds through the bond market.

The five is to carry out a pilot scheme for financial institutions to hold shares of enterprises in an appropriate way.

We should set up an industrial (equity) investment fund guided by the government and market operation, actively attract social capital to participate, encourage financial institutions and national social security funds and insurance funds to participate effectively in the form of subscription fund shares and so on.

The six is to speed up the establishment of a standardized local government debt financing mechanism, and support the provincial government to issue government bonds according to the regulations in accordance with the law, and to build key projects in the public domain.

The "opinion" also pointed out that under the premise of controllable risks, the investment scope of insurance funds will be gradually relaxed and the way of fund utilization should be innovating.

It is encouraged to support projects such as major infrastructure, major livelihood projects and new urbanization through credit, equity and asset support.

We should accelerate the construction of the investment management system of the national social security fund, the basic pension insurance fund and enterprise annuity, and establish and improve the market-oriented investment and operation mechanism.

The "opinion" requires innovation to deepen investment and financing mechanisms for external cooperation, strengthen coordination and cooperation among financial institutions, and make good use of all kinds of funds to provide more investment and financing support for domestic enterprises going out and key cooperative projects.

Under the framework of macro and micro Prudential Management, we will steadily relax domestic enterprises and financial institutions' overseas financing and do well in risk aversion.

We should improve the filing system of foreign debt issuance, raise low cost foreign exchange funds, and better support enterprises' foreign investment projects.

To strengthen multi-level investment and financing cooperation with international financial institutions and governments, enterprises and financial institutions.

There are several key words in the above views, one is asset securitization, the two is mixed reform, the three is to increase support for double financing, four is to develop bond market vigorously, five is to pilot financial institutions to hold shares, six is to issue government bonds, seven is to relax investment scope of insurance funds, eight is to relax domestic enterprises and financial institutions to finance overseas, and so on.

The opinions involve various aspects of the financial market and the various aspects of investment and financing.

Apparel industry integration meets policy dividends

We have always said that the financing of private enterprises is difficult and expensive. This is a difficult problem. We can see that the reform of investment and financing system is not a new topic. It is also a cliche. It also shows that the problems behind it involve many aspects. It is a complex and important reform focus.

But the publication of this opinion is still of special significance.

The first is the guidance document issued by the State Council on the decision of the State Council on the reform of the investment system released in 2004. It has been changed for a long time in the past 12 years, and the economic situation has changed a lot. Two, this is a guidance document issued under the situation of declining economic growth, economic restructuring, and the pformation of the real economy. Private investment is still in decline. It can be seen as a "forced" situation, which is the core of the investment and financing reform.

Under such circumstances, for the garment industry that is in the process of pformation and upgrading, the performance is generally under pressure, and most of them are small and medium-sized private enterprises, the publication of guidance documents for investment and financing reform and the release of more follow-up policies can be regarded as a good policy.

This will further promote clothing enterprises to accelerate their pformation and upgrading through the financial market and capital market, and deepen the degree of integration of industry and finance in the garment industry. It can be expected that more clothing enterprises will enter the capital market at all levels, such as main board and new three boards, and equity financing will further develop. The pace of overseas investment and financing of garment enterprises will further accelerate, and financial capital such as insurance funds will be further integrated with industrial capital.

It can be predicted that the trend of integration of production and finance will further accelerate.