Shaoning, deputy director of Sasac: not only domestic demand but also the elimination of production capacity

State Council deputy Director Shaoning Click here to view all financial news Pictures state-owned deputy director Shaoning: Whether the current stimulus package is sustainable is still needed to study according to Beijing, June 7 (Xinhua) Shaoning, deputy director of the state-owned Assets Supervision and Management Commission, said in Beijing on 7th that the revenues and profits of state-owned enterprises had declined in the previous April. He stressed that the future state-owned assets should be further optimized to concentrate, and ensure that the difficult state-owned enterprises can successfully exit the majority of the market oversupply in the State Council and Beijing Sasac sponsored the 2009 City State-funded forum, Shaoning said, at present, the vast majority of industries are in a state of oversupply. Companies face shrinking demand, or a grim problem of overcapacity.　　Oversupply of the state caused excessive competition, resulting in a more substantial price diving, the final result is the lack of business start-up, as well as a sharp decline in profits. From 1 to April this year, the operating income of central enterprises fell by 9.2%, and profits fell by 36%.　　In the same period, local state-owned and state-controlled enterprises operating income fell by 8.4%, to achieve profit fell 58.1%. "This year's situation should be much more serious than last year, especially since the decline in operating income is the first time in years."　　Shaoning said that last year, the business income of central enterprises grew by 17.9%, and profits fell by 34.1%, but a considerable part was caused by the policy losses of the petroleum, petrochemical and power industries. Shaoning pointed out that in the past few years, China's rapid economic growth has formed a part of the production capacity, its corresponding demand has not actually existed, "for example, steel, now sell better than before not too much of the building materials, steel and so on." The original is the pursuit of the silicon steel, building materials board instead. "Shaoning revealed that with a large amount of fiscal expenditure and money into the main content of the policy of starting domestic demand is still need to study," from the enterprise point of view, we feel at least from this year's situation, or not optimistic, need to do all aspects of preparation.　　"The management should not hold too much stock," Shaoning said, this special and grim situation requires the strengthening of the State-owned enterprises in the cost control capacity, in the future still need to further optimize the state-owned economy layout structure.　　"Some central companies are still arranging for their children to be employed," Shaoning.　　He stressed that state-owned enterprises can not rely on layoffs to cut labor costs, but through the promotion of "cadre cadres, staff can enter, income can increase the ability to reduce" the cost of the three system, into the economic scale and technical quality requirements of higher areas. Shaoning pointed out that a considerable part of the city's state-owned assets optimization and centralization process is not yet completed.　　Sasac can manage the dispersed state-owned assets through the platform of the asset management company, and accelerate the withdrawal and concentration process. For public welfare enterprises and competitive enterprises, Shaoning stressed that the classification of supervision. For the public welfare enterprises such as water supply, power supply and gas supply, it is necessary to solve the problems of combining public welfare and enterprise, and establish the evaluation system and salaryPay system, deal with the financial relationship between enterprises and the government. For competitive companies, Shaoning says such companies could try to push for stronger incentives.　　However, some incentives such as operating a large proportion of shareholding, although short-term effective, but in the long run has a negative effect, often lead to personalized business. "To let the low quality enterprise exit" in the grim economic situation, there is bound to be a number of new difficulties enterprises appear bankrupt, the need to withdraw from the city often statistics, in the past more than 10 years, through the closure of the policy of bankruptcy, nearly 5000 of the state-owned large and medium-sized enterprises out of the market, involving the resettlement of nearly 10 million workers.　　The policy bankruptcy end of last year, enterprises in accordance with the "Bankruptcy law" required to withdraw from the city often on this, Shaoning said, in the reform of state-owned enterprises must realize the effective transformation of exit mode, to maintain the flow of bankruptcy channels.　　He stressed that following the Asian financial crisis, the financial crisis caused our economy again encounter overcapacity problem, and the extent of the problem is more serious, we must leave the channel to stay out of the enterprise, can not only rely on the start of domestic demand, but also need to let the low quality of enterprises exit, eliminate the overcapacity. Extend News Zhang Wenqui Pulse new stimulus plan: Emphasis should be on industrial upgrading investment on the Morning Post the deputy Director of the Development Research Center of the State Council, Zhang Wenqui, said at the 2009 City State Investment Forum yesterday that China's economy would show a U-shaped trend and that there would be a period of consolidation at the bottom.　　Policies to stimulate exports and stimulate consumption will not be able to boost economic growth in the second half and next year, and the focus of subsequent stimulus should be on investment in industrial upgrading, not only in hard assets but also in soft assets. Zhang Wenqui said, in addition to the current railway, highway, airport and other infrastructure construction and environmental construction, "the next step is likely to launch a more aggressive investment in the industrial upgrading of the plan, only through the stimulation of industrial upgrading investment in manufacturing investment in fixed assets ... We all know that 1997 years, 1998 years later, the state in many industries has launched a large-scale stimulation of the policy, we can see 2000 years, 2003 after the rapid economic recovery, many of our industries, including steel, textile, automotive industry in the international competitive position significantly increased, this time to do so. "In addition, Zhang Wenqui pointed out that, in addition to industrial upgrading investment, it is possible to launch a regional investment stimulus plan." "The policy of stimulating consumption may also be that the most effective is to stimulate the purchase of motor vehicles, if the purchase of motor vehicles can not go up, or if there is a decline, do not rule out the introduction of a stronger car policy." Of course, monetary policy will continue to be loose, the annual credit scale is expected to increase by 10 trillion yuan. Although after the Ching Ming Festival, the CBRC issued a notice to check the arbitrage situation, the investigation is very serious, April, May, the large-scale decline in credit ... (But) I think the credit will probably be much faster in the second half of the year than in May. ”