On the morning of 19 October, Liu he, member of the political Bureau of the CPC Central Committee and vice premier of the State Council, was jointly interviewed by People's Daily reporter Gong Wen, Xinhua News Agency reporter Zhao Cheng, and CCTV reporter Xu Qiang on current economic and financial hot issues. The following is the transcript of the interview.
Reporter: vice Premier Liu, we know you are very busy, but there are some changes in the current economic and financial situation. I hope you can answer a few questions and respond to the concerns of the market.
Liu he: welcome to the interview. I would very much like to answer your questions.
（一）
Reporter: vice Premier Liu, what do you think of the recent large fluctuations in China's stock market?
Liu he: recently, there have been obvious fluctuations and declines in the Chinese stock market, which is caused by many factors. The first is the external factors.After major central banks raised interest rates, global stock markets began to fluctuate and fell, and the US stock market also showed a significant correction, a process that continues. Sino-US trade friction has also had an impact on the market, but frankly speaking, the psychological impact is greater than the actual impact, and China and the United States are currently in contact.Second, China's economic structure is in the process of breaking the old and establishing the new, which is bound to have an impact on the stock market. Third, market expectations have changed, and all kinds of uncertainties in the future economic environment have affected the behavior of investors. Investors are very concerned about the development of private economy and the protection of property rights. In addition, there are also some technical factors in the market in recent days, such as passive position reduction in the process of stock market decline. These factors add up to make the stock market fluctuate.
Recently, I have paid close attention to the assessment of China's stock market by international investment institutions and the market analysis of domestic professional institutions. The consensus is that, in terms of global asset allocation,China is becoming the most valuable market for investment, the bubble has greatly shrunk, the quality of listed companies is improving, and their valuations are historically low, so many institutions suggest paying close attention to China's stock market. It is believed that China's stock market already has high investment value.It is believed that investors will make rational judgments on these assessments. It can be saidThe adjustment and clearing of the stock market are creating good investment opportunities for the long-term and healthy development of the stock market.
（二）
Reporter: what new measures does the government have to promote the healthy development of the stock market?
Liu he: the government attaches great importance to the healthy and stable development of the stock market.At present, the psychological characteristic of the stock market is that there are strong expectations for institutional innovation and reform policies, and there is a strong positive feedback effect between market performance and this expectation.Therefore, to promote the healthy development of the stock market, we must launch new reform measures pertinently. Recently, the people's Bank of China, the Banking and Insurance Regulatory Commission, the Securities Regulatory Commission and other relevant departments are studying and introducing new reform measures, and have some new institutional arrangements and policy tools. This morning, these policies have been announced one after another, including at least the following aspects. First, in terms of stabilizing the market, bank financial subsidiaries are allowed to invest in the capital market, requiring financial institutions to do a good job in risk management of equity pledge financing business scientifically and rationally. funds and private equity funds managed by local governments are encouraged to help promising companies alleviate the difficulties of equity pledge. Second, in terms of the reform of the basic system of the market, we should formulate the measures for the Management of Private assets Management of Securities and Futures institutions, improve the share buyback system of listed companies, deepen the market-oriented reform of mergers and acquisitions, and promote the reform of the new third board system. increase support for the listing of scientific and technological innovation enterprises. The third is to encourage the long-term sources of funds in the market, increase the financial nature of insurance funds and strategic investment in high-quality listed companies, strengthen the strength of institutional investors, and consolidate the foundation of long-term investment in the market. Fourth, in promoting the reform of state-owned enterprises and the development of private enterprises, we will speed up the introduction of a series of new measures, including promoting the mixed ownership reform of state-owned enterprises in the capital market and supporting the industrial merger and restructuring of leading private enterprises in the industry. launch private enterprise bond financing support plan and equity financing support plan and so on. Fifth, in terms of opening wider to the outside world, we will continue to expand opening up in all directions and speed up the opening up of banking, securities, insurance and other fields in accordance with the spirit of General Secretary Xi Jinping's Boao speech. This year marks the 40th anniversary of reform and opening up. The major policies of reform and opening up have been set, and the key is to pay close attention to implementation. This is a critical moment when action is better than a dozen programs, and all parties should make greater efforts to implement it, have a stronger sense of responsibility, dare to take responsibility, act quickly, and earnestly introduce some specific policies to promote the healthy development of the stock market.
（三）
Reporter: at present, private enterprises are facing some anxiety about implementing the basic economic system. What do you think of this problem?
Liu he: first of all, I would like to stress that we must unswervingly implement the basic economic system and adhere to the "two unwavering principles". On the one hand, we must unswervingly consolidate and develop the public sector of the economy. on the other hand, we will unswervingly encourage, support and guide the development of the non-public sector of the economy. At present, in the process of actual implementation, there are some misunderstandings and deviations. for example, the business staff of some institutions think that it is safe to provide loans to state-owned enterprises, but loans to private enterprises are politically risky, and they would rather do nothing than make political mistakes. This understanding and practice is completely wrong. We must understand this issue from the perspective of politics and the overall situation.The private economy plays an important role in the whole economic system, contributing more than 50% of the tax revenue, more than 60% of the technological innovation of GDP,70%, more than 80% of urban employment, and more than 90% of the new employment and the number of enterprises.If there is no development of private enterprises, there will be no stable development of the whole economy; if there is no high-quality private enterprise system, there will be no modern industrial system, and supporting the development of private enterprises is to support the development of the whole national economy. Those behaviors that do not support the development of private enterprises for the sake of so-called "personal safety" have great problems in their political orientation and must be resolutely corrected. For private enterprises, we should emphasize the "four necessities": first, we must adhere to the basic economic system and give full play to the important role of small and medium-sized enterprises and private economy in China's economic and social development. Second, we must attach great importance to the temporary difficulties faced by small and medium-sized enterprises and take accurate and effective measures to vigorously support the development of small and medium-sized enterprises. Third, we must further deepen the study of policies and measures to support the development of small and medium-sized enterprises in reducing the burden of taxes and fees, solving financing problems, improving environmental governance, and improving the ability of scientific and technological innovation. Fourth, we must improve the ability of small and medium-sized enterprises and the private economy, constantly adapt to the changes in the market environment, and strive to achieve high-quality development. Recently, the Office of the State Council leading Group on promoting the Development of small and medium-sized Enterprises and the all-China Federation of Industry and Commerce should go to various localities to learn about the implementation of the basic economic system and the development of small and medium-sized enterprises. I hope you will give us your support.
（四）
Reporter: there are some comments on "Guojin Mintui" in the society. What do you think of this?
Liu he:The so-called "the country advances and the people retreat" in society is not only one-sided, but also wrong.Recently, some private enterprises that expanded rapidly through high debt encountered liquidity difficulties because they deviated from the main business, and state-owned banks or state-owned enterprises helped or even restructured.It is to help private enterprises tide over the difficulties, which precisely reflects the interdependence and cooperation between state-owned enterprises and private enterprises. I think it is a good thing, and there is no problem of "the country advancing and the people retreating".When the operation of private enterprises is good, state-owned capital can withdraw. On the other hand, if state-owned enterprises encounter difficulties, they can also improve their efficiency through the active participation of private enterprises. We also encourage qualified and better private enterprises to play an active role in industrial restructuring and merge and reorganize small and medium-sized enterprises that have competitive potential but are currently facing difficulties in the same industry.
It must be noted that China's state-owned enterprises and private enterprises have formed a complete industrial chain. Most state-owned enterprises are in the upper reaches of the industrial chain and play a role in areas such as basic industries and heavy manufacturing industries. Private enterprises increasingly provide manufacturing products, especially final consumer goods, and the two are highly complementary, cooperative and supportive. In the future, China's economy will continue to improve in this direction and move towards high-quality development. We must change from the traditional concept of solidification to using the brand-new concept of modern industrial chain to understand the state-owned and private economy.
In particular, I would like to say that at a time when China's economy is still in the stage of "three-phase superposition", some enterprises are facing some difficulties, and this is precisely the stage at which entrepreneurs can make great achievements. Entrepreneurs with courage, vision and courage should take the first step and live up to expectations. The Chinese government will create an equal environment, strengthen the rule of law, strengthen the protection of property rights and intellectual property rights, adhere to the basic economic system, and deepen reform and opening up. There is no reason why we should not have confidence in the broad prospects of China's economic development.
（五）
Reporter: what do you think of the current economic and financial situation and changes in the industrial structure?
Liu he: I think China's economy as a whole has maintained a basic trend of stability and improvement.From the main indicators of economic growth, employment, prices, balance of payments, corporate profits, fiscal revenue, labor productivity and other major indicators, China's economic operation is in a reasonable range. Compared with the major economies in the world, the performance of China's economy is relatively excellent, and the International Monetary Fund and the World Bank have highly appraised the sustainable development of China's economy.From the perspective of the financial sector, the steady operation of monetary policy, the steady progress of financial structural deleveraging, the obvious convergence of the impulse of various institutions to expand blindly regardless of risk, and the investment behavior tends to be rational. At the same time, various risks and problems accumulated in history are inevitably coming to light, which is an inevitable process and should be treated rationally.
In view of the marginal changes in economic operation, the CPC Central Committee and the State Council put forward the requirements of making efforts to stabilize employment, finance, foreign trade, foreign investment, investment, and expectations. Of course, in particular, it is necessary to properly handle the relationship between stable growth, structural adjustment and risk prevention, on the one hand, to maintain the stability of economic growth, on the other hand, to prevent and control financial risks, and to maintain the relative stability of the macro leverage ratio. The key to the balance between the two is the implementation of a policy system with supply-side structural reform as the core. Over the past three years, we have achieved phased results in "three cuts, one drop and one supplement". The international community generally believes that through "destructive innovation", the price levels in some surplus areas of China's economy have returned to equilibrium, and the relationship between supply and demand has significantly improved. this has stimulated economic growth and promoted global economic recovery.
The task of China's economic structural adjustment has not yet been completed, and the supply-side structural reform should be deepened, and the next step should be focused on enhancing the vitality, resilience, and innovation of the micro main body, so as to promote economic transformation and upgrading and promote the virtuous circle of the national economy.We must hurry to do three things well.First, we should support the development of private enterprises, improve financial accessibility and lighten all kinds of burdens. Second, it is necessary to deepen the reform of state-owned enterprises, especially the reform of mixed ownership, establish a more perfect corporate governance structure, strengthen the construction of internal incentive mechanisms, and improve core competitiveness. Third, the financial system should improve its adaptability and enhance its ability to serve the real economy.Under the current situation, it is especially necessary to speed up the construction of the system and give full play to the key role of the capital market. Of course, to do these things well needs to be supported by sound macro policies, and we will continue to implement a proactive fiscal policy, a prudent monetary policy, a clear industrial investment policy, and a more inclusive and sustainable social policy, so that the core policy of supply-side structural reform will be further deepened. If we look at the performance of China's economy from a temporary point of view, we may find it difficult to analyze the performance of China's economy, but once we look at it as a historical process, the prospect of development is very bright.
From the perspective of the virtuous circle of the national economy, China's economy is undergoing a structural change. We often say that it is changing from traditional kinetic energy to new kinetic energy. Now the market is very concerned about which direction to turn. A clear description of this transformation process is more complex, because it is a market-oriented exploration and trial and error process, but from the demand direction, there are several points are clear.First, China's huge middle-income group is rising, they are creating huge diversified demand; second, the aging population is obvious, and it is also forming a huge demand; third, a new round of scientific and technological revolution and industrial change characterized by the combination of biotechnology and information technology is on the rise, which not only requires us to put forward supply-side solutions, but also creates huge demand; fourth, green development creates development opportunities. We should seize these directions, identify and seize new opportunities in the great historical process of industrialization, informationization, urbanization, marketization, and internationalization, strive to transform traditional industries, and vigorously develop new industries. we will speed up the construction of a modern economic system.
Finally, I would like to say that under the leadership of the CPC Central Committee with Comrade Xi Jinping at the core, it is a historical necessity for China to achieve peaceful development, and the difficulties and problems we encounter are all difficulties and problems in our progress. As long as you keep this in mind, the heart will calm down, and China's tomorrow will certainly be better!