Huang: The rebound in the stock market is not enough to prove the economy

In response to the housing stock market signs of warming, the National Political Consultative committee vice chairman, China's president Huang recently in Hangzhou Blunt, this is not enough to prove that the Chinese economy has rebounded, the rebound in the Chinese economy, depending on whether 4 trillion yuan investment can pry private investment. Huang was held on May 30 in the "2009 Zhejiang Business Conference" on the previous statement. Huang said that China's economy has stopped falling, but whether it can rebound immediately, should also look at the effect of national policies and corporate action, "if the measures are inappropriate, it is likely to appear w-shaped, and then come down again." "The domestic market is still erratic.　　"First of all, the loss of electricity is increasing, indicating that the economy has not been fully improved, and second, that the sharp fall in revenues has been a significant drop in corporate efficiency as the most basic cell of the economy-" which is most frightening, because corporate profitability is the key to determining economic fluctuations, "says Huang. In particular, 4 trillion yuan investment plan, "whether it can drive private investment, will determine the economic success or failure-if 4 trillion can pry 30 trillion success, if 4 trillion is only 4 trillion, only the government or state-owned enterprises, the majority of SMEs and private enterprise enthusiasm has not been mobilized, is unsuccessful." "So, although 4 trillion yuan investment is gradually playing a role," but in the end how the effect, but also to listen to decomposition, it is difficult to say.　　"Huang Frankly, the current trillions of yuan new loans have been sent almost," but large private enterprises have not touched the edge.　　Based on this, Huang suggested that the state should introduce a series of policies to encourage private investment, to promote the 4 trillion yuan investment plan in place.　　Xiaonian, a renowned economist and a professor at Ceibs, also expressed a similar view on the same occasion: the key to the continued growth of China's economy is the follow-up of private capital. "Can stimulating domestic demand rely solely on expansionary monetary and fiscal policies?" I think it is very problematic, if private consumption and private investment do not follow up, it is difficult to achieve sustained growth. It is hard to say that the government has a lot of money to spend and this year's volume of credit will continue. "So the crux of the matter is whether private capital can be followed up," Xiaonian said.　　"In Xiaonian's view, policymakers should re-examine the current policy, the guiding ideology of government spending, as soon as possible to start civil demand, how to improve the operating environment of private enterprises, rely on many private enterprises through sustainable investment to stimulate domestic demand."　　He suggested that deregulation should be relaxed, the administrative monopoly should be broken, private capital should be allowed to enter the traditional monopoly industry, the tax should be reduced, the financial institutions should be innovated, and financial services would be provided for private enterprises, such as reducing market access and establishing many privately-run and community-based credit institutions. "The easiest way is to legalize underground banks in the southeast coast, allowing them to operate and function in a fair and transparent legal regulatory framework," he said. Xiaonian said, "The current office design, only the loan of the small lending institutions are not viable, the future will certainly hit the wall." ”