What kind of signal is transmitted?, The Central Politburo meeting proposed to "activate the capital market". Capital markets | economy | The Central Politburo
On July 24th, the Political Bureau of the Central Committee of the Communist Party of China held a meeting to analyze and study the current economic situation and deploy economic work for the second half of the year. The meeting pointed out the need to activate the capital market and boost investor confidence.
The current macroeconomic development is stable, showing an overall trend of recovery. But economic recovery is not a smooth and overnight process, but a process of wave like development and tortuous progress. Therefore, it is necessary to not only gather confidence in economic development, but also enhance the vitality of industrial development. Active capital markets can help promote various enterprises to unleash market vitality and creativity. From the current work focus, to activate the capital market, the key is to use financial factors to support high-quality economic development, build a modern industrial system characterized by technological innovation, and vigorously promote the development of science and technology innovation economy.
The top priority is to activate the financial market
On July 17th, the National Bureau of Statistics released the national economic statistics for the first half of 2023. Data shows that since the beginning of this year, with the comprehensive restoration of normal economic and social operation, China's economic operation has gradually stabilized and improved, and the quality of development has steadily improved. However, it also faces some risks and challenges. Therefore, while maintaining stable economic growth, efforts should be made to promote high macroeconomic growth and accelerate growth in key industries and sectors. The primary task of activating the capital market is to activate the financial market and maintain an active market temperature, which is beneficial for boosting confidence in social and economic development, as well as promoting rapid GDP growth through financial efforts.
Firstly, leverage the fundamental role of financial services in serving the economy. Especially attach great importance to the development of the financial services industry, stimulate the service awareness of financial entities, and enable them to provide high-quality differentiated services; Stimulate the enthusiasm of financial services for the real economy, proactively connect with new demands of economic development, provide creative services for new situations, and deliver high-quality financial services to various economic scenarios.
Secondly, mobilize the resource allocation role of the financial market. The capital market is a place for the allocation of financial resources, a gathering place for investment and speculative funds, and a diversion place for the conversion of capital gains and losses. It can not only gather the gathered funds and distribute them to economic entities in urgent need of development, but also contribute to the construction of a modern industrial system and the creation of advanced scientific and technological productivity; It is also possible to transfer the gathered funds out and distribute them to the "money steward" who can achieve value-added, which is conducive to restoring consumer confidence index, revitalizing the consumer market, driving consumption growth, and ultimately driving GDP growth.
Thirdly, leverage the financial stimulus effect of the capital market. Not only by creating loose capital market opportunities, attracting listed companies to expand capital market capacity, supporting the financing and development of strong companies participating in technological innovation, but also by stimulating market growth in the stock market, enhancing residents' consumption ability.
Fourthly, enhance the trading activity of the stock market. Economic recovery is a big game, while financial activity means overall activity; And with financial activity, the capital market must be active. Therefore, it is necessary to mobilize the vitality of the high-end financial industry in the tertiary industry, release the momentum of technological productivity in the secondary industry, and enable the convergence of the second and third industries in the market. High quality resources should be concentrated to promote key core technology research and development, accelerate the research and application promotion of cutting-edge technologies, and boost the confidence of capital and investment in the science and technology innovation economy while expanding domestic demand. We should view the role of active capital markets from the perspective of establishing a modern industrial system, promote science and technology innovation enterprises to create first-class technology, and promote the application of advanced technology in more social scenarios.
Building a solid foundation for industrial modernization through technological innovation
Chinese path to modernization should first of all be the modernization of science and technology industry. Vigorously developing strategic emerging industries is the only way to achieve industrial modernization. Starting from the establishment of the Science and Technology Innovation Board, the country aims to catch up with the world's advanced industries and ultimately achieve the development of the science and technology innovation economy. The capital market has become an important force in integrating finance and industry, and supporting technological innovation.
However, utilizing the Science and Technology Innovation Board to achieve the integration of funds and technology in the capital market is not an easy task. It aims to transform high-cost enterprise interest bearing bond financing into low-cost market interest free investment, so that enterprises with innovative advantages and development prospects can obtain more affordable financial resource supply, and also enable leading technology enterprises to receive excess market funding support. Through the integration and innovation of capital markets and physical technology, excess value appreciation can be achieved, and financial capital and human intelligence can achieve value enhancement in the science and technology innovation board market, driving advanced technological productivity to become a real productivity for creating wealth, and driving the production relationship of scientific research to become an effective production relationship for organizing resources.
The process of modernizing the technology industry cannot be separated from venture capital and social investment in the financial market. Therefore, it is necessary to promote the financial guarantee required for the entire technological innovation, provide a more solid hardcore foundation in the layout of advanced industries, and enable the construction of an innovative country to receive full support from financial markets and "innovation factories", improve total factor productivity, and empower economic growth.
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