Ye Tan: Does The Government Make Up The Menu Market?

In November 25th, the NDRC issued an official reply to the four railway projects on the official website.

As a result, the total investment in railway projects approved this year has reached 1 trillion and 116 billion 539 million yuan.

Some call it familiar taste and familiar recipes.

Familiar taste, different way.

The stock market has risen sharply, first the reform dividend, followed by the market dividend, and the rise in market value is beneficial to the financing of listed companies, but the investment at tens of billions of dollars is a drop in the bucket.

The central bank has taken the first step in reducing interest rates over the past two years.

The market liquidity has not changed. The cost of private financing has not changed significantly.

Loose surface did not bring down the cost of capital, but gave rise to a rising tide of stock market. Stock market people shouted everywhere: the bull market came, the bull market came, please fasten your seat belt.

Low cost funds go through various channels.

Market.

The real economy can only get funds through revitalize private capital, financing innovation and asset securitization.

In August this year, the Zhejiang provincial development and Reform Commission and the finance department issued the "guiding opinions on Further Strengthening the financing and construction management of Zhejiang provincial government investment projects".

We should speed up the construction of government investment projects such as public infrastructure, and prudently and steadily use BT and other financing modes.

It is understood that

At present, there are two projects that have adopted PPP mode financing: Hangzhou Metro Line 1 and Wenzhou happiness track.

In August 7th, the first batch of major projects in Chongqing was signed as the 25 major reform and important project of PPP investment and financing mode reform.

The Chongqing municipal government signed 2 memorandum of cooperation and 8 specific projects at the site of China Railway Construction and MTR, involving a total investment or total assets of more than 100 billion yuan.

In April 23rd this year, the Executive Council of the State Council decided to launch 80 demonstration projects in the field of infrastructure and other fields, open tender for the public, encourage and attract social capital to participate in the construction and operation in joint venture, sole proprietorship and franchising.

In the next two years and the "13th Five-Year" period, 172 major water conservancy projects, including major agricultural water saving projects and major diversion water projects, will be constructed step by step. The scale of the project is currently 600 billion yuan.

At the news conference held by the national development and Reform Commission in October 14th, Zhang Minglun, deputy director of the investment and Development Commission of the NDRC, revealed that the next step would be to promote the reform of water conservancy investment and financing system, relax market access, innovate financing mechanism, and encourage and attract social investment to participate in the construction of major water conservancy projects with certain economic benefits.

Existing liabilities and capital flows will be resolved through asset securitization, no longer printing money, and generating money with money.

In November 26th, the Shanghai Securities Regulatory Commission issued the guidelines on asset securitization business to clarify the specific requirements of listing, pfer of equity assets, investor suitability and information disclosure.

Securitisation of assets in the future will be an important part of the bond market.

At present, the basic asset types of listed products include leasing claims, infrastructure charging rights, enterprise accounts receivable, entrusted loans and so on.

In June, credit assets backed securities were also successfully listed on the Shanghai stock exchange for the first time.

The NDRC and other departments have made a series of menus, but the buyers are not the central bank and the Ministry of finance, but the public funds and investors.

At present, investors are mainly concentrated in the stock market and the property market. In the future, investors will have to enter various markets such as bonds and asset securitization, and the bottom of the financial market will be deeper and deeper.

Unlike the previous fiscal and monetary policies, this round of fiscal stimulus is very strong, but the monetary stimulus policy is relatively small. Whether private funds have confidence is a key factor in the success of this round of stimulus.

If private funds are to be revitalized, the current problems of austerity and debt can be solved. If private funds lose confidence or even drain out, they will be buried in underground cellars. Finally, the central bank will have to rely on printing money to maintain operations, and the debt ratio will further rise.