On the morning of October 19, Liu He, member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, accepted a joint interview with People's Daily reporter Gong Wen, Xinhua News Agency reporter Zhao Cheng, and CCTV reporter Xu Qiang on current economic and financial hotspot issues.

The following is the interview transcript:

Reporter: Vice Premier Liu, we know you are very busy, but the current economic and financial situation has undergone some changes. I hope you can answer a few questions and respond to market concerns.

Liu He: You are welcome to interview. I am very willing to answer your questions.

(1)

Reporter: Vice Premier Liu, what is your opinion on the recent sharp fluctuations in the Chinese stock market?

Liu He: Recently, China's stock market has experienced obvious fluctuations and declines, which are caused by many factors.The first is external factors.After major central banks raised interest rates, global stock markets began to fluctuate and fell, and the U.S. stock market also experienced a significant correction. This process is still going on.The Sino-US trade friction has also affected the market, but frankly speaking, the psychological impact is greater than the actual impact, and China and the US are currently in contact.Second, China's economic structure is in the process of destroying the old and establishing the new, which will inevitably have an impact on the stock market.Third, market expectations have changed, and various uncertainties in the future economic environment have affected investor behavior.

Investors are very concerned about issues such as the development of the private economy and the protection of property rights.In addition, there are also some technical factors in the market in recent days, such as the phenomenon of passive lightening of positions during the decline in the stock market.These factors add up to make the stock market volatile.

Recently, I have paid close attention to the evaluation of China's stock market by international investment institutions and the market analysis of domestic professional institutions.Everyone agrees that from the perspective of global asset allocation, China is becoming the market with the most investment value, the bubble has been greatly reduced, the quality of listed companies is improving, and valuations are at historically low levels. Therefore, many institutions recommend that China’s stock market be highly valued.Concerned, that China's stock market already has a high investment value.For these assessments, I believe investors will make rational judgments.It can be said that the adjustment and clearing of the stock market are creating good investment opportunities for the long-term healthy development of the stock market.

(two)

Reporter: What new measures does the government take 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.The psychological feature of the current stock market is that there is a strong expectation 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 introduce new reform measures in a targeted manner.Recently, the People's Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and other relevant departments have been researching and introducing new reform measures, with 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, banks' wealth management subsidiaries are allowed to invest in the capital market, financial institutions are required to do a good job in risk management of equity pledge financing business in a scientific and reasonable manner, and local government-managed funds and private equity funds are encouraged to help companies with development prospects relieveEquity pledge is difficult.Second, in terms of reform of the basic market system, formulate management measures for the private equity asset management business of securities and futures operating institutions, improve the stock repurchase system of listed companies, deepen the market-oriented reform of mergers and acquisitions, promote the reform of the new third board system, and increase the listing of technological innovation companies.support etc.

Third, in terms of encouraging long-term sources of funds in the market, increase the financial and strategic investment of insurance funds in high-quality listed companies, strengthen the strength of institutional investors, and consolidate the foundation for long-term investment in the market.The fourth is to accelerate the introduction of a series of new measures in promoting the reform of state-owned enterprises and the development of private enterprises, including promoting the mixed ownership reform of state-owned enterprises in the capital market, supporting industry-leading private enterprises to carry out industrial mergers and reorganizations, and launching private enterprise bond financing support plans and equity financingsupport programs, etc.Fifth, in terms of expanding opening up, we will continue to expand opening up in all directions, and accelerate the opening up of banking, securities, insurance and other fields in accordance with the spirit of the speeches made by General Secretary Boao.

This year marks the 40th anniversary of reform and opening up. The policy of reform and opening up has been set, and the key is to pay close attention to implementation.Now is a critical moment when action is better than a dozen programs. The implementation of all aspects must be stronger, the sense of responsibility must be stronger, the courage to take responsibility, the quick action, and practically introduce some specific policies to promote the healthy development of the stock market.

(3)

Reporter: At present, private enterprises are facing some anxiety about implementing the basic economic system. What do you think of this issue?

Liu He: First of all, I would like to emphasize that we must unswervingly implement the basic economic system and adhere to two unswerving principles: on the one hand, we must unswervingly consolidate and develop the public sector of the economy; on the other hand, we must unswervingly encourage, support,Guide the development of the non-public sector of the economy.At present, in the actual implementation process, there are some misunderstandings and deviations. For example, the business personnel of some institutions believe that it is safe to provide loans to state-owned enterprises, but it is politically risky to provide loans to private enterprises. They would rather not act than make political mistakes.This understanding and approach 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 entire economic system, contributing more than 50% of tax revenue, more than 60% of GDP, more than 70% of technological innovation, more than 80% of urban labor employment, and more than 90% of new employment and the number of enterprises.Without the development of private enterprises, there will be no stable development of the entire economy; without a high-quality private enterprise system, there will be no modern industrial system. To support the development of private enterprises is to support the development of the entire national economy.

Those behaviors that do not support the development of private enterprises for the sake of so-called personal safety have serious problems in terms of political orientation, and must be resolutely corrected.For private enterprises, we must emphasize four musts: First, we must adhere to the basic economic system and give full play to the important role of small, medium and micro enterprises and the private economy in my country's economic and social development.Second, we must attach great importance to the temporary difficulties currently faced by small, medium and micro enterprises, and take precise and effective measures to vigorously support the development of small, medium and micro enterprises.Third, it is necessary to further deepen research on policies and measures to support the development of small, medium and micro enterprises in terms of reducing tax burdens, solving financing problems, improving environmental protection governance, and improving technological innovation capabilities.

Fourth, it is necessary to improve the capabilities of small, medium and micro enterprises and the private economy, constantly adapt to changes in the market environment, and strive to achieve high-quality development.Recently, the Office of the State Council Leading Group for Promoting the Development of Small and Medium-sized Enterprises and the All-China Federation of Industry and Commerce will go to various places to learn about the implementation of the basic economic system and the development of small, medium and micro enterprises. We hope for your support.

(4)

Reporter: There are some discussions in the society about the advancement of the state and the retreat of the people. What do you think of this?

Liu He: The so-called national advance and the private retreat in society are both one-sided and wrong.Recently, some private enterprises that have expanded rapidly through high debt in the early stage have encountered difficulties in liquidity due to deviation from their main business.Dependence and mutual cooperation, I think it is a good thing, there is no problem of the country advancing and the people retreating.When the operating conditions of private enterprises are good, state-owned capital can exit.

Conversely, if state-owned enterprises encounter difficulties, they can also actively participate in improving efficiency through private enterprises.We also encourage well-qualified and relatively good private enterprises to play an active role in industrial restructuring, and carry out mergers and acquisitions of some small and medium-sized enterprises in the same industry that have competitive potential but are currently facing difficulties.

It must be noted that my country's state-owned enterprises and private enterprises have formed a complete industrial chain.State-owned enterprises are mostly in the upper reaches of the industrial chain and play a role in basic industries and heavy manufacturing industries. Private enterprises are increasingly providing manufacturing products, especially final consumer goods. The two are highly complementary, mutually cooperative, and mutually supportive.In the future, China's economy will continue to improve along this direction and move towards high-quality development.We must change from the traditional solidified concept to a brand-new modern industrial chain concept to understand the state-owned and private economies.

In particular, I would like to say that at present, China's economy is still in the superposition stage of the three phases, and some enterprisesFaced with some difficulties, this is the stage when entrepreneurs can make great achievements. Entrepreneurs with courage, vision, and daring to act 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, uphold the basic economic system, and deepen reform and opening up. We have no reason not to be confident in the broad prospects of China's economic development.

(five)

Reporter: What do you think of the current economic and financial situation and changes in industrial structure?

Liu He: In my opinion, China's economy has generally maintained a basic momentum of stability and improvement.Judging from major indicators such as economic growth, employment, commodity prices, balance of payments, corporate profits, fiscal revenue, and labor productivity, my country's economic operation is within a reasonable range.Compared with major international economies, my country's economic performance is relatively good. The International Monetary Fund and the World Bank have given high praise to China's sustainable economic development.

From the perspective of the financial field, the monetary policy is operating steadily, the financial structural deleveraging is steadily advancing, the impulse of various institutions to expand blindly regardless of risks is obviously restrained, and investment behavior tends to be rational.At the same time, various risks and problems accumulated in history are inevitably coming to light. This is an inevitable process and should be treated rationally.

In response to the marginal changes in economic operation, the Party Central Committee and the State Council proposed to strive to achieve stable employment, stable finance, stable foreign trade, stable foreign investment, stable investment, and stable expectations. We must resolutely implement them.Of course, it is especially necessary to properly handle the relationship between stable growth, structural adjustment, and risk prevention. On the one hand, it is necessary to maintain the stability of economic growth, and on the other hand, it is necessary to prevent and control financial risks and maintain a relatively stable macro leverage ratio.

The key to a balance between the two is to implement a policy system centered on supply-side structural reforms.In the past three years, we have achieved phased results in three reductions, one reduction and one supplement. The international community generally believes that through destructive innovation, the price level in some surplus areas in the Chinese economy has returned to equilibrium, and the relationship between supply and demand has improved significantly, thereby stimulating the economy.growth and contributed to the recovery of the global economy.

The task of my country's economic structural adjustment has not yet been completed, and the supply-side structural reform needs to be further deepened. The next step should focus on enhancing the vitality, resilience, and innovation of micro-subjects, so as to promote economic transformation and upgrading, and promote a virtuous cycle of the national economy.We must pay close attention to doing three things well.One is to support the development of private enterprises, improve financial accessibility, and reduce various burdens.

The second is to deepen the reform of state-owned enterprises, especially the reform of mixed ownership, establish a more complete 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 requires the support of sound macro policies. We will continue to implement proactive fiscal policies, sound monetary policies, clear industrial investment policies, and more inclusive and sustainable social policies to make the supply sideThe core policy of structural reform was further deepened.

Analyzing the performance of China's economy may be difficult if you look at it from a momentary point of view, but once you look at it as a historical process, the prospects for development are very bright.

From the point of view of the virtuous cycle of the national economy, the Chinese economy is undergoing a structural change. We often say that it is a transition from traditional kinetic energy to new kinetic energy. Now the market is very concerned about which direction to turn?It is more complicated to clearly describe this transformation process, because it is a process of market exploration and trial and error, but from the perspective of demand, there are several points that are clear.

First, the huge middle-income group in China is rising, and they are creating huge diversified demands; second, the population is aging obviously, and it is also creating huge demands; third, new technologies characterized by the combination of biotechnology and information technologyA round of technological revolution and industrial transformation is on the rise, which not only requires us to propose supply-side solutions, but also creates huge demand; fourth, green development creates development opportunities.

We must seize these directions, identify and seize new opportunities in the great historical process of industrialization, informatization, urbanization, marketization, and internationalization, strive to transform traditional industries, vigorously develop new industries, and accelerate the construction of modern industries.Economic system.

I would like to say one last thing. Under the leadership of the Party Central Committee with comrades at the core, China's peaceful development is a historical necessity. The difficulties and problems we encounter are all difficulties and problems in the process of progress. As long as you keep this in mind, the heart will calm down, China's tomorrow will be better!