A Share Market Ushered In Long-Term Good

The positive fiscal policy should be strengthened, the prudent monetary policy should be flexible and moderate, actively and steadily resolve the excess capacity, the capital market should be in line with the merger and reorganization of enterprises, dissolve the inventory of real estate, reduce the price of commodity housing, eliminate the outdated restrictive measures, vigorously promote the reform of state-owned enterprises, accelerate the reform of the financial system, and form a stock market as soon as possible, with a complete financing function, a solid foundation system, effective market supervision, and full protection of investors' legitimate rights and interests.

The central economic work conference was held in Beijing in from December 18th to 21st.

Xi Jinping, general secretary of the CPC Central Committee, chairman of the CPC Central Committee and chairman of the Central Military Commission, delivered an important speech at the meeting, summing up the economic work in 2015, analyzing the current domestic and international economic situation, and deploying the economic work in 2016. The key point is to implement the "13th Five-Year" planning proposals, promote structural reform and promote sustained and healthy economic development.

In the speech, Li Keqiang, standing committee member of the Political Bureau of the CPC Central Committee and Premier of the State Council, elaborated on the orientation of macroeconomic policy next year, and laid down the key work of economic and social development next year and made a concluding speech.

The meeting pointed out that since the beginning of this year, facing the complicated international situation and arduous and heavy domestic reform, development and stability tasks, we have implemented the implementation of last year's central economic work conference decision making and deployment, strengthened and improved the party's leadership over economic work, firmly upholder the initiative of economic and social development, actively adapted to the new normal economic development, properly responded to major risks and challenges, and made great progress in economic construction, political construction, social construction, ecological civilization construction and Party building in accordance with the requirements of the "four overall" strategic layout.

The economic operation is generally stable, steady progress, steady and good economic growth, medium and high speed growth, economic structure optimization, reform and opening up to move forward in depth, people's livelihood continues to improve, and the overall social situation is generally stable.

The completion of this year's main objectives and tasks indicates that the "12th Five-Year plan" can win the official conclusion and make our country stand at a higher level of development.

At the same time, due to various factors and changes in conditions at home and abroad, economic development still faces some outstanding contradictions and problems. We must attach great importance to it and take effective measures to resolve them.

The meeting held that recognizing the new normal, adapting to the new normal and leading the new normal are the major logic of China's economic development in the current and future period. This is a major judgement that we have made a comprehensive analysis of the long cycle of the world economy and the characteristics and interactions of China's development.

We must unify our thinking and deepen our understanding, and integrate our thoughts and actions into the major judgments and decisions of the Party Central Committee.

We must overcome difficulties, break through the barriers and adhere to dialectics. On the one hand, China's economic development is basically good, with great potential, strong resilience and large room for maneuver. On the other hand, it is also faced with many difficulties and challenges, especially structural overcapacity.

This is a historical juncture that can not be passed. We should speed up reform and innovation and grasp the job well to get through smoothly.

We must be bold in reform and bold innovation. We must emancipate our minds, seek truth from facts and keep pace with the times. We should make an innovative summary in theory according to the development concept of innovation, coordination, green, openness and sharing, make forward-looking arrangements in policy, intensify structural reform, rectify the distortion of factor allocation, expand effective supply, increase the adaptability and flexibility of supply structure, and raise total factor productivity.

The meeting pointed out that to lead the new normal of economic development, efforts should be made to pform the focus of various aspects of work.

To promote economic development, we should pay more attention to improving the quality and efficiency of development.

To stabilize economic growth, we should pay more attention to the structural reform of supply side.

The implementation of macroeconomic regulation and control should pay more attention to guiding market behavior and social psychological expectation.

To adjust the industrial structure, we should pay more attention to addition, subtraction and multiplication.

To promote urbanization, we should pay more attention to human centered.

To promote regional development, we should pay more attention to the balance of population economy and resources and environment.

To protect the ecological environment, we should pay more attention to promoting the formation of green production mode and consumption mode.

To ensure the improvement of people's livelihood, we must pay more attention to the precise assistance to special groups.

We should pay more attention to making the market play a decisive role in the allocation of resources.

We should pay more attention to promoting high-level two-way opening to the outside world.

The meeting stressed that promoting the structural reform of supply side is a major innovation to adapt and lead the new normal development of the economy. It is an active choice to adapt to the new situation of comprehensive national strength competition after the international financial crisis and is an inevitable requirement to adapt to the new normal of China's economic development.

The meeting pointed out that next year is the beginning of the comprehensive victory of the well-off society and the year of tackling structural reform.

With the guidance of Deng Xiaoping theory, the important thought of Three Represents and Scientific Outlook on Development, we should strengthen and improve the leadership of the party in economic work and coordinate the two overall situations of the domestic and international economy. In line with the "five in one" overall layout and the "four overall" strategic layout, we firmly establish and carry out the innovative, coordinated, green, open and shared development concept, adapt to the new normal economic development, persist in reform and opening up, persist in the general keynote of steady progress, adhere to steady growth, adjust the structure, improve people's livelihood and prevent risks, and implement the general train of thought of macroeconomic policies, industrial policies, micro policies, reform policies and social policies. To do well in economic work, we must fully implement the eighteen and eighteen third party members of the party.

We should promote the overall improvement of China's social productive forces and strive to achieve a good start in economic and social development during the "13th Five-Year" period.

The meeting stressed that next year and in the coming period, we should intensify the supply side structural reform while implementing the moderate expansion of aggregate demand, and implement the five major policy pillars to complement each other.

First, macroeconomic policy must be stable, which is to create a stable macroeconomic environment for structural reform.

The positive fiscal policy should be intensified, the tax reduction policy should be implemented, and the fiscal deficit rate should be increased at a phased stage. At the same time, the necessary fiscal expenditure and government investment should be appropriately increased, and at the same time, it is mainly used to make up for the reduction of tax revenue brought by tax reduction and to ensure the government's responsibility for expenditure.

A prudent monetary policy should be flexible and moderate, so as to create an appropriate monetary and financial environment for structural reform, reduce the cost of financing, maintain a reasonable and sufficient liquidity and increase the total amount of social financing, expand the proportion of direct financing, optimize the credit structure, and improve the exchange rate formation mechanism.

Second, industrial policy must be accurate, so we must accurately position the direction of structural reform.

We should promote agricultural modernization, speed up the construction of manufacturing power, speed up the development of service industry and improve the level of infrastructure networking, and so on, and promote the formation of new growth points.

We must persist in innovation drive, focus on activating stock, strive to make up short board, speed up green development, and develop the real economy.

Third, micro policy to live is to improve the market environment, stimulate enterprise vitality and consumer potential.

We should do a good job of serving the enterprises, create a loose market operation and investment environment on the system and policy, encourage and support the innovation and development of all kinds of ownership enterprises, protect the property rights and legitimate interests of all kinds of ownership enterprises, increase the investment confidence of enterprises, and improve the market expectations of enterprises.

We should create a market environment for free flow of goods and equal exchange, and eliminate market barriers and local protection.

To improve the effective supply capacity, we should create new supply, improve the quality of supply and expand consumption demand.

Fourth, the reform policy should be implemented, that is, we need to step up efforts to push the reform down.

We should improve the implementation mechanism, grasp the reform pilot projects, strengthen co-ordination and coordination, mobilize local enthusiasm, allow local differences in exploration, and give play to the spirit of initiative at the grass-roots level.

We must dare to bite the bone and dare to risk the beach, do a good job in landing the reform measures, so that the reform can see the actual effect constantly and make the masses get more sense of gain.

Fifth, the bottom line of social policy is to keep the bottom line of people's livelihood.

We should give full play to the role of social stabilizers in social security, lay emphasis on the bottom line, protect the basic livelihood of the masses and ensure basic public services.

The meeting held that the task of economic and social development, especially structural reform, is very heavy next year. Strategically, we must stick to steady progress and grasp the rhythm and strength. We must grasp the key points in tactics, mainly focusing on five major tasks: capacity production, inventory elimination, deleveraging, cost reduction and compensation.

First, actively and steadily resolve overcapacity.

According to the main body of the enterprise, government promotion, market guidance and disposal according to law, we should study and formulate a comprehensive supporting policy system, adjust measures to local conditions, sort out orderly disposal, and properly handle the relationship between maintaining social stability and promoting structural reform.

It is necessary to create conditions for the implementation of market bankruptcy procedures according to law and speed up bankruptcy liquidation cases.

To put forward and implement fiscal and tax support, disposal of non-performing assets, unemployment reemployment and living security, and special reward and other policies, the capital market should cooperate with the merger and reorganization of enterprises.

As many mergers and acquisitions as possible, less bankruptcy liquidation and better placement of workers.

We must strictly control increments and prevent new overcapacity.

Second, help enterprises reduce costs.

We should carry out the action of reducing the cost of real economy enterprises and play the "combined boxing".

We should reduce institutional paction costs, pform government functions, decentralization, and further standardize intermediary services.

We should reduce the burden of enterprises' taxes and fees, further tax and fees, clean up all kinds of unreasonable fees, create a fair tax burden environment, and reduce the value-added tax rate of manufacturing industry.

To reduce social insurance premiums, we should study and streamline the "five risks and one gold".

To reduce the financial cost of enterprises, the financial sector should create a policy environment for normalizing interest rates and make profits for the real economy.

We should reduce the price of electricity, promote the marketization of electricity prices, and improve the linkage mechanism of coal and electricity prices.

We should reduce the logistics cost and push forward the reform of the circulation system.

Third, resolve real estate inventory.

In order to speed up the urbanization rate of household registration and deepen the reform of housing system, we should speed up the citizenization of migrant workers and expand effective demand to open up supply and demand channels, digest inventory and stabilize the real estate market.

We should implement the household registration system reform plan and allow non resident population such as agricultural pfer population to settle down in the employment area, so that they can form the expectation and demand in the place of employment or long-term rental housing.

We should deepen the housing system clearly.

In order to meet the housing demand of new citizens as the main starting point, the public rental housing should be expanded to non registered population by establishing the housing system with simultaneous purchase and rent.

We should develop the housing rental market, encourage natural persons and all kinds of institutional investors to purchase inventory commercial housing, and become the providers of housing resources in the rental market, and encourage the development of specialized enterprises whose main business is housing lease.

It is necessary to encourage the real estate development enterprises to adjust the marketing strategy according to the market rules, appropriately reduce the price of commodity housing, promote the annexation and reorganization of the real estate industry, and improve the concentration degree of the industry.

Outdated restrictive measures should be abolished.

Fourth, expand effective supply.

We must strike a good fight against poverty, stick to precise poverty alleviation and accurately shake off poverty, aim at establishing poor people in the card market, increase investment in funds, policies and work, and really work hard to improve the quality of poverty alleviation.

It is necessary to support enterprises' technological pformation and equipment renewal, reduce the debt burden of enterprises, innovate financial support methods, and improve the investment ability of enterprises in technological pformation.

Cultivate and develop new industries and speed up innovation in technology, products and formats.

We should make up the short board of soft and hard infrastructure, improve the effectiveness and accuracy of investment, and promote the formation of a market-oriented and sustainable investment mechanism and operation mechanism.

We should increase investment in people's efforts so that workers can better adapt to changing market environment.

We should continue to do a good job in agricultural production, ensure effective supply of agricultural products, ensure the safety of rations, ensure the steady growth of farmers' incomes, strengthen the basic construction of agricultural modernization, implement the strategy of storing grain in land and grain, and put emphasis on funds and policies in protecting and improving the comprehensive agricultural production capacity and the quality and efficiency of agricultural products.

Fifth, guard against and defuse financial risks.

We must deal with credit default in accordance with the law.

To effectively resolve local governments

We should do a good job in the replacement of local government stock debt, improve the management of government debt and improve the method of issuing local government bonds.

We should strengthen all-round supervision, standardize all kinds of financing activities, carry out special rectification of financial risks, resolutely curb the spread of illegal fund-raising, strengthen risk monitoring and early warning, properly handle risk cases, and firmly guard against the bottom line of systemic and regional risks.

The conference stressed that to promote structural reform, we must rely on comprehensive deepening reform.

We should intensify the reform of important fields and key links, and introduce a number of reform measures that have significant traction effect.

We should vigorously promote the reform of state-owned enterprises, speed up the restructuring and establishment of state-owned capital investment and operation companies, and accelerate the reform of monopoly industries.

We should speed up the reform of the fiscal and taxation system, and speed up the key issues such as dividing the central and local powers and responsibilities, improving the local tax system, strengthening local development capacity and lightening the burden of enterprises.

We should speed up the reform of the financial system and form a stock market as soon as possible, with a complete financing function, a solid foundation system, effective market supervision, and full protection of investors' legitimate rights and interests. We should promptly study and put forward a reform plan for the financial regulatory system, speed up the reform of the banking system, deepen the reform of state-owned commercial banks, and accelerate the development of green finance.

We should speed up the reform of the endowment insurance system, improve the personal accounts, adhere to the actuarial balance, and improve the overall planning level.

We should speed up the reform of the medical and health system and focus on establishing a new institutional mechanism on the basis of ensuring the basic and strong grass-roots level.

The meeting pointed out that we should continue to do a good job of optimization.

We should promote regional distribution, promote foreign trade, make good use of foreign capital, strengthen cooperation in international production and equipment manufacturing, speed up negotiations on FTA and investment agreements, and actively participate in global economic governance.

We should improve the environment for utilizing foreign capital, attach great importance to protecting the legitimate rights and interests of foreign-funded enterprises, attach great importance to the protection of intellectual property rights, and treat foreign and domestic enterprises equally and fairly.

We should pay close attention to the implementation of the "one belt and one road" construction, and give full play to the supporting role of the institutions such as Asian investment bank and Silk Road Fund.

The meeting stressed that we must stick to the goal of building a moderately prosperous society in an all-round way, firmly grasp the first priority of development, relax the scientific and technological objectives, and scientifically identify the main objectives of economic and social development, grasp the balance between steady growth and structural adjustment, stabilize and improve macroeconomic policies, and increase the support for the real economy.

We must vigorously promote structural reforms and focus on solving deep-seated problems that restrict development.

We will continue to implement the strategy of innovation driven development, promote entrepreneurship and innovation, and accelerate innovation and upgrading of traditional kinetic energy through reform and innovation.

We should use new ideas and new measures to tap the potential of domestic demand, expand consumer demand, and play a key role in effective investment in stabilizing growth and restructuring, and further promote new urbanization.

We must vigorously optimize the industrial structure, accelerate the construction of modern agriculture, and focus on the steady growth of industry, adjusting the structure and increasing efficiency.

We should accelerate the formation of a new pattern of opening up and foster new advantages in international competition.

We need to make new breakthroughs in green development.

We must keep the basic livelihood and seize the bottom line.

We should improve the incentive and accountability mechanism of supervision, and promote the development of all kinds of businesses.

The meeting stressed the importance of adhering to the major principles of socialist political economics with Chinese characteristics, adhering to the emancipation and development of social productive forces, adhering to the direction of socialist market economy reform, and making the market play a decisive role in the allocation of resources, which is the main line for deepening economic restructuring.

We must persist in mobilizing the enthusiasm of all sides, fully mobilize the enthusiasm of the people, fully mobilize the two initiatives of the central and local governments, and focus on mobilizing the initiative, initiative and creativity of entrepreneurs, innovative talents and cadres at all levels.

We should enhance the ability of public opinion guidance, be good at grasping the essence, the mainstream and the trend, be good at grasping social psychology, be good at grasping time, degree, effect, deep analysis, actively voice, clarify the right and wrong, and do better in guiding the work of public opinion.

The meeting called for the central economic work conference to be a comprehensive deployment for next year's economic work as well as a key deployment for structural reform.

Leading cadres at all levels must integrate their ideas into the decision-making and deployment of the Party Central Committee, grasp the right direction, push forward the reform and development and stability steadily, and continuously achieve tangible results, and promote higher quality, efficiency, fairness and sustainable development.