Wang Jun: Lowering The Cost Of Capital By Lowering Interest Rates

The market has lowered both the loan interest rate and the deposit reserve ratio, and the one-year deposit interest rate has dropped to a new low.

Since November last year, the market has experienced 6 interest rates and 5 reductions. It seems that it has not yet been fully nourished.

Some experts believe that there will still be room for cutting interest rates in the future.

Although the "robust" two words have not yet been replaced by "loose", the frequent movements of the central bank are enough for sensitive investors to make decisions.

So, after many rounds of lowering interest rates, is the life of enterprises better? What opportunities do investors find from their policies? With these questions, the reporter (NBD) interviewed Wang Jun, Vice Minister of consulting and Research Department of China International Economic Exchange Center.

It is hard to say that the adjustment is in place, though one year.

It has dropped to 1.5%, but the loan interest rate is still relatively high.

Interest rate cuts, of course, help to reduce the overall cost of financing, but it is difficult to get instant results for long end interest rates and weak links.

Interest rate cuts, of course, reduce the cost of capital, but why there is always a directional policy, because many weak links, such as small micro and "three rural" loan channels are not smooth, low-cost water is difficult to flow to the urgent need, through reform, so that the benefits of cutting interest can really get the weak link to enjoy.

In the current economic situation, what are the changes in the direction of investment?

It should be said that the change is still very large, generally reflected in the second production or manufacturing industry, and many enterprises are also reducing investment in the second industry.

But some new industries, such as natural gas, information industry, Internet and other enterprises, are more favored by investors.

At the same time, some traditional industries will actively use new technologies, including big data, cloud computing and other modern information technologies to enhance their capabilities, and products and services are seeking.

And breakthroughs in order to seek pformation.

In addition to financing costs, the most important thing is the tax burden.

According to my recent understanding, many enterprises, of course, are mainly state-owned enterprises and central enterprises, and the pressure imposed by the finance and taxation departments is relatively large. Many entrepreneurs are also concerned about this problem.

When the economic situation is bad, it is necessary to reduce taxes and lighten the burden of enterprises, which is also conducive to economic recovery.

A large number of loans are still acquired by state-owned enterprises, and the sensitivity of state-owned enterprises to interest rates is relatively low, which is urgently needed to solve.

On the one hand, we are reforming the financial system, such as developing the direct financing market, developing the bond market, and so on. On the other hand, we need the market participants to be more perfect and be able to respond correctly to the signals issued by the market.

There is still a distorted mechanism, which requires the principal part of the fund to be denied, and the principal of the fund often does not cherish it and the efficiency of the allocation of funds is low.

The reform of state-owned enterprises, which is now being implemented, enables enterprises to be more sensitive to the price of funds, thereby constraining their investment behavior.

In the past, some state-owned enterprises were blind enough to expand investment because of their abundant capital, and invested in some areas or industries which were not good or competitive, such as real estate, which resulted in a large number of zombie enterprises and excess capacity.

One of the most important reasons is the right company.

Insensitive, do not regard funds as scarce resources.

If the behavior of state-owned enterprises does not change, the pmission efficiency of monetary policy will be difficult to improve.

It can be said that the result of economic development is mainly the lack of demand at present. It is necessary to reduce the financing cost to stimulate enterprises to expand investment. Lowering interest rate itself is a counter cyclical adjustment measure. The more the economy goes down, the more relaxed monetary policy will be.

At present, our country is adjusting its economic structure, the contribution rate of consumption to GDP has exceeded investment, and the proportion of the third industry in 2013 exceeds second industries. Is it possible to say that China's economy has entered a new stage?

This is certain.

Consumption over investment has been seen in history. It is also a period of economic downturn. Investment shrinkage is more serious. The proportion of consumption will rise passively. This is normal.

The third industry accounts for more than second industries, indicating that the economic structure is becoming more and more service oriented and lightweight.

This is a very important optimization of the industrial structure, because the high proportion of the second industry means consuming a lot of resources and destroying the ecological environment. Therefore, from the perspective of sustainable development, it is also necessary to adjust the industrial structure to light.

Many developed countries have also taken this road.