Ye Tan: The right of industrial integration cannot fall in the hands of foreign capital

The future is the era of capitalist-led industrialists. There are three reasons: one is that asset bubbles lead to more and more money, the central bank can tighten the currency to temporarily cool the stock market, but the trend cannot be reversed; whether the asset securitization of state-owned enterprises, mergers and acquisitions, or industrial upgrading of private enterprises, all need to hold large funds, rich financial and entity experience to carry out large-scale overlap　　Third, one of the negative effects of RMB internationalization is to cause the inflow of foreign capital, as long as the RMB internationalization momentum and China's real economy can support, this trend will not change. January 19, the renminbi against the United States dollar middle price to create a 2005 change since the new high 6.5885, this is only the beginning, the renminbi against the dollar annual rise will be about 5%, but the renminbi internationalization of the floodgates have been opened, funds unstoppable.　　This is because foreign investors covet the appreciation of the renminbi, the appreciation of interest rates, asset appreciation, but also because local governments to borrow foreign capital to consolidate the reasons for the assets. On the last day of 2010, JPMorgan, Morgan Stanley and China's domestic companies jointly formed joint venture securities companies were approved to launch domestic equity and bond underwriting business, 5 years later, the brokerage business.　　Goldman Sachs, Credit Suisse, Deutsche Bank and UBS have already landed in China. This is not all, since 2010, Blackstone, first East, CLSA, Carlyle, TPG and other foreign PE institutions have set up renminbi funds in China, according to Chinaventure Group's data products Cvsource statistics show that,　　At the end of August 2010, the group announced the establishment of its first renminbi equity investment fund in Shanghai, with a funding scale of 5 billion yuan, and the establishment of a total of 5 billion yuan China's western Growth Fund in Chongqing. The biggest difficulty that foreign fund encounters before is policy threshold, capital item control threshold, the RMB fund of Foreign investment Enterprise Capital settlement should be used within the business scope approved by the government because of the regulation of safe, which makes the foreign LP (limited partner) not to the domestic RMB funds.　　With the internationalisation of the renminbi and the enthusiasm of local governments, difficulties are melting. China is faced with the bottleneck of inefficient use of domestic funds, in the urgent need for industrial upgrading of Dongguan, 600 billion deposit deposits in the bank, the integration between enterprises is still at a relatively low-end level.　　In fact, relying on the promotion of government preferential policies, so far, some eastern enterprises are still in the "three" link, while the Midwest industrial clusters and manufacturing industry has been quite replaced, funds, investment companies into the Midwest. If, in the past, China's capital was flowing from the west to the east, and from the countryside to the city, the current Chinese money is flowing from the east to the investment company, to the private equity fund and to the trust industry. The author understands that some coastal areas are trapped in the industrial upgrading cities, by the investment companies to sweep back and forth, as China's capital and money market, an important place to raise. These areas are desperate to be trapped in manufacturing, investing in property criticized, and investing in stock markets., or the existence of banks to watch the depreciation every day, or to the High-yield investment companies to manage.　　Love in the industrial people to move to the Midwest, and the love of the capital market, the big alligator, they have become the protagonist of the capital market, say good call through the industry and finance, is actually completed from the industrialist to the capitalist transformation. Foreign capital entering the menacing, focus on the overall layout of China's industry, from the east to West resource layout step by step press, for the potential of the manufacturing enterprises will not let go, compared to China's famous CIC investment in the overseas income, and do not say foreign financial institutions in China's banks in the market tide of the gains, It is said that Morgan Stanley withdrew from CICC to gain a huge profit of $700 million trillion, with a joint venture to go into the mainland, and a 5-year return on the new development to 7 times times.　　This is a looting, in fact, the deep development did not become a special market-oriented banks, but the past bad debts through asset consolidation. If not vigilant, the tragedy of deep development will surely repeat itself, which means that the suffering of China's big state-owned banks will suffer again.　　The fund has been dragnet in fields including agriculture, minerals, consumption, medicine, environmental protection and even footwear, and it is no exaggeration to say that China will be the golden age of capitalists in the years to come, and that all of China's industrial chains will be reconstructed by capitalists working with industrialists. How to make good use of local capital, to create the competitiveness of local capital and a fair competitive environment, after major banks listed, once again before us.　　To make good use of local competitiveness, China will usher in the Golden Age of industrial upgrading, the system to promote weakness blindly rely on foreign investment, China will be in a period of capital play, after a period of high foreign debt, the dangerous years. We can call the first failure to pay tuition fees, the second defeat is to the Chinese people crime.