China's private enterprises are expected to have a large area of ​​bankruptcy

* A large area of ​​private enterprise bankruptcy will not appear * The government should establish a support mechanism for small and micro enterprises * Consider financial subsidies, vigorously develop guarantee institutions, etc. Although the current living environment of private enterprises in China is worrying, the Chinese Academy of Social Sciences is private Liu Yingqiu, director of the Center for Economic Research, believes that the private economy is still in a period of development, and a large area of ​​bankruptcy is hard to come by. However, the government may consider establishing a support mechanism for small and micro enterprises to alleviate the difficulties.

Liu Yingqiu accepted an interview with Reuters on Monday and suggested that the government should increase the development of microfinance, adopt financial subsidies, and vigorously develop guarantee agencies, and take comprehensive measures to promote the implementation of "36" private enterprises. The tightening policy also needs to be adjusted and it should not continue to increase the deposit reserve ratio.

"I don't think this year's private enterprises will have bankruptcy, but their development does face many difficulties," said Liu Yingqiu. Under the background of tightening, financing will become a common phenomenon. At present, the financing difficulties of private enterprises are mainly due to structural financing difficulties. The financing of small and micro enterprises in private enterprises is difficult.

He pointed out that at present, we should increase the development of microfinance in order to broaden the financing channels. The government can also consider creating a support mechanism for small and micro enterprises, financial subsidies for more dynamic and innovative small and micro enterprises, and enterprises that meet the direction of industrial development. , product technology updates and upgrades, the implementation of corporate restructuring, etc. to provide a certain degree of downward adjustment ** discount interest support.

In addition, efforts should also be made to develop guarantee agencies (companies) for small and micro enterprises. In registration and approval, they may consider encouraging small companies to co-found such companies and reduce entry barriers so as to provide more convenience for the development of small and micro enterprises. Along this line of thought, more innovative forms of financing for small and micro enterprises can also be considered.

It has been more than a year since China introduced the “new 36 article” to encourage private investment, but it has been slow to implement and it has been discounted so that private capital still has no “door” to enter. Coupled with the cruel reality of “three wastes, two highs and one low” (employment shortage, money shortage, electricity shortage, high cost, high tax burden, and low profits), the days of precariousness of private enterprises seem to be more difficult than the financial crisis era.

However, although small and micro enterprises generally have the problem of low collateral capacity and credit rating, China’s small and micro enterprises have always come from channels of folk and affection, and the more developed areas become more prominent, “this is a common phenomenon in China.” said Liu Yingqiu. .

He also pointed out that due to various reasons, it is possible that some enterprises will go bankrupt, but it is not so easy to form a wave of bankruptcy.

**More emphasis should be placed on technological innovation and industrial upgrading**

For the private enterprises themselves, China’s long-term maintenance of the low-employee workforce is drawing to a close, and the low-cost era has basically ended. Changes in industrial technology require higher input.

"This requires private enterprises to pay more attention to technological innovation and industrial upgrading," said Liu Yingqiu.

He also pointed out that private enterprises must make choices in the industry's entry. “It is not necessary for the bank to advance, nor is it for which industry to enter the industry with high profitability. To analyze the actual situation of the company, it is necessary to consider the ability and necessity. ”

He also stated that the government has a great role in breaking the monopoly of state-owned enterprises. Therefore, it must follow the objective laws and continue to deepen structural reforms.

In addition, the People’s Bank of China has raised the deposit reserve ratio 11 times since last year. The first five months of this year were adjusted upwards by 0.5 percentage points per month. At present, the reserve requirement ratio for large financial institutions has reached a record high of 21%. Private interest rates Also rising, the voice of private enterprises financing more and more strong.

Liu Yingqiu believes that the tightening policy needs to be adjusted, and at least it should not raise the reserve for legal deposits again.

“I don’t approve of this and I don’t think (adjusting the statutory deposit reserve ratio) has many benefits for the economic operation.” Liu Yingqiu said that this move will not be able to curb inflation. Instead, it will lead to tight financing for various types of companies, rising interest-rate costs and financial Reduced operating efficiency.