Economic reform plan targets state firms, financial sector
Editor: 管理员 Date:2015-05-21 Hit:3827
%3CP%3E%3CFONT%20face%3DVerdana%3EChina%20is%20giving%20greater%20attention%20to%20reforms%20for%20state%20firms%20and%20the%20financial%20sector%2C%20with%20more%20forceful%20measures%20likely%20to%20be%20unveiled%20this%20year.%20%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EChina%27s%20cabinet%20released%20an%20annual%20economic%20reform%20plan%20for%202015%2C%20laying%20out%2039%20tasks%20in%20eight%20aspects%20on%20Monday.%20%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20National%20Development%20and%20Reform%20Commission%2C%20the%20country%27s%20top%20economic%20planner%2C%20formulates%20the%20plan%20every%20year%2C%20which%20is%20widely%20deemed%20as%20a%20mini%20version%20of%20the%20annual%20government%20work%20report%20delivered%20by%20the%20premier%20in%20March.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EComparing%20it%20with%20previous%20plans%2C%20analysts%20said%20the%202015%20document%20highlighted%20the%20significance%20and%20urgency%20of%20further%20and%20quicker%20reforms%20in%20state-owned%20enterprises%20%28SOE%29%20and%20the%20financial%20sector.%20%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ETo%20vitalize%20state%20firms%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%202015%20plan%20listed%20SOE%20reforms%20as%20the%20second%20most%20important%20aspect%2C%20compared%20with%20a%20fourth%20place%20in%20the%202014%20document.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20plan%20said%20the%20government%20will%20make%20or%20revise%2016%20sets%20of%20regulations%20to%20reinvigorate%20the%20public%20sector%3A%20restructuring%20centrally%20administered%20SOEs%2C%20lowering%20market%20threshold%20for%20private%20investors%20and%20overhauling%20the%20supervision%20mechanism%20to%20prevent%20losses%20of%20state%20assets.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22This%20is%20the%20first%20time%20for%20the%20government%20to%20elaborate%20on%20the%20direction%20of%20SOE%20reforms%2C%22%20said%20Li%20Jin%2C%20chief%20researcher%20with%20the%20China%20Enterprise%20Research%20Institute.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22The%20plan%20mentioned%20SOE%20restructuring%2C%20which%20deserves%20much%20attention%2C%22%20said%20an%20anonymous%20source%20with%20a%20research%20center%20under%20the%20State-owned%20Assets%20Supervision%20and%20Administration%20Commission%20%28SASAC%29%2C%20China%27s%20non-financial%20SOE%20watchdog.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EIn%20April%2C%20media%20reports%20that%20China%27s%20112%20non-financial%20SOEs%20directly%20administered%20by%20the%20central%20authority%20will%20merge%20into%2040%20went%20viral%20online%20.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20SASAC%20neither%20confirmed%20nor%20denied%20the%20consolidation%20in%20a%20later%20statement%2C%20just%20saying%20%22the%20story%20was%20written%20without%20interviewing%20or%20verifying%20with%20us%22.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EMarket%20value%20of%20China%27s%20SOEs%20totaled%2025.24%20trillion%20yuan%20%284.1%20trillion%20US%20dollars%29%20at%20the%20end%20of%202014%2C%20accounting%20for%2060.4%20percent%20of%20the%20whole%20market%20value%20of%20China%27s%20two%20stock%20exchanges.%20%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20SASAC%20statement%20sent%20the%20benchmark%20Shanghai%20Composite%20Index%20down%20by%201.13%20percent%20following%20a%20surge%20on%20the%20consolidation%20reports.%20History%20showed%20that%20a%20piece%20of%20news%2C%20good%20or%20bad%2C%20is%20probably%20enough%20to%20trigger%20a%20sharp%20fluctuation%20in%20the%20stock%20market.%20%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22The%20government%20has%20the%20motive%20to%20consolidate%20the%20public%20sector%20by%20restructuring%20SOEs%2C%20but%20there%20is%20too%20much%20misinformation%20in%20the%20market%2C%22%20said%20Li%2C%20advising%20stock%20holders%20to%20invest%20calmly%20and%20cautiously.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ETo%20liberalize%20financial%20sector%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EInstead%20of%20a%20few%20sentences%20in%20the%202014%20plan%2C%20the%202015%20document%20used%20five%20paragraphs%20to%20set%20four%20tasks%3A%20building%20a%20multi-tier%20financial%20system%2C%20pushing%20ahead%20with%20interest%20rate%20liberalization%20and%20capital%20account%20convertibility%2C%20implementing%20a%20registration%20mechanism%20for%20stock%20issuance%2C%20and%20launching%20catastrophe%20insurance.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EChina%20is%20working%20to%20lift%20control%20of%20interest%20rates%20and%20give%20financial%20institutions%20more%20freedom%20to%20price%20deposits%20and%20loans.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EIn%20a%20latest%20move%20toward%20interest%20rate%20liberalization%2C%20China%27s%20central%20bank%20raised%20the%20upper%20limit%20of%20the%20floating%20band%20of%20deposit%20rates%20to%201.5%20times%20the%20benchmark%20from%20the%20previous%201.3%20times.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ECurrently%2C%20the%20yuan%27s%20convertibility%20on%20the%20capital%20account%20is%20subject%20to%20strict%20control%20in%20order%20to%20prevent%20huge%20volumes%20of%20capital%20outflow.%20The%20country%20has%20promised%20free%20convertibility.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EDuring%20the%20political%20%22two%20sessions%22%20in%20March%2C%20central%20bank%20governor%20Zhou%20Xiaochuan%20pledged%20to%20accelerate%20reform%20and%20opening%20up%20of%20the%20capital%20market%20in%202015%2C%20with%20the%20aim%20to%20make%20the%20yuan%20convertible%20on%20the%20capital%20account.%20%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EZhang%20Zhiwei%2C%20Deutsche%20Bank%27s%20chief%20China%20economist%2C%20expected%20major%20progress%20in%20this%20direction%20in%202015%20and%20consequently%20more%20capital%20inflow%20into%20China.%20%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22An%20open%20capital%20account%20will%20benefit%20China%20as%20money%20inflow%20will%20drive%20up%20prices%20of%20stocks%20and%20bonds%2C%22%20said%20the%20economist.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EXiao%20Gang%2C%20head%20of%20China%27s%20top%20stock%20market%20regulator%2C%20said%20in%20January%20that%202015%20will%20see%20the%20phasing%20out%20of%20the%20current%20approval-based%20method%20for%20initial%20public%20offerings%20%28IPOs%29%20and%20the%20implementation%20of%20a%20registration-based%20system.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22The%20new%20system%20will%20allow%20the%20market%20to%20play%20a%20deciding%20role%20and%20establish%20a%20boundary%20for%20regulatory%20power%2C%20as%20well%20as%20protect%20investors%27%20interests%2C%22%20Xiao%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20cabinet%20reiterated%20its%20stance%20to%20carry%20out%20these%20reforms%20in%20the%202015%20plan%2C%20and%20the%20implementation%20will%20likely%20speed%20up%20this%20year.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EFirm%20determination%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EWhile%20some%20analysts%20said%20China%20may%20compromise%20reform%20commitments%20to%20a%20pressing%20need%20to%20stabilize%20ailing%20growth%2C%20the%202015%20plan%20signaled%20firm%20reform%20determination.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22The%20government%20will%20actively%20adapt%20to%20the%20economic%20%27new%20normal%27%2C%20and%20roll%20out%20forceful%20reform%20measures%2C%22%20said%20the%20plan.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EAt%20a%20meeting%20of%20the%20Central%20Leading%20Group%20for%20Deepening%20Overall%20Reform%20earlier%20this%20month%2C%20Chinese%20President%20Xi%20Jinping%20asked%20officials%20to%20dedicate%20their%20efforts%20to%20the%20country%27s%20reform%20drive.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22We%20should%20have%20the%20courage%20to%20change%20ourselves%2C%20face%20up%20to%20challenges%2C%20and%20deepen%20reforms%20in%20a%20comprehensive%20way%2C%22%20said%20Xi.%3C/FONT%3E%3C/P%3E%3CFONT%20face%3DVerdana%3E%0D%0A%3CP%3E%3CBR%3E%28Global%20Times%29%3C/P%3E%0D%0A%3CP%3E%3C/FONT%3E%26nbsp%3B%3C/P%3E
