Per reporter: Wang Yandan Per editor: He Jianling
Image source: Photo.com
A few days ago, the Central Financial and Economic Commission held its tenth meeting to study the issue of solidly promoting common prosperity. Vigorously developing the capital market and allowing residents to enjoy more property income is an important way to achieve common prosperity.
On the evening of August 30, Geely Automobile released the details of the common prosperity plan, and the first batch of more than 10,000 employees will share 167 million shares, which is about 3.7 billion yuan according to the latest market value. It can be said that common prosperity will be the most far-reaching and important strategic task in the future.
In this regard, how does the industry view, what role will the capital market play, and what long-term investment opportunities will be spawned? On the afternoon of August 31, Li Zhan, chief economist of the Research Department of China Merchants Fund, was a guest and had a wonderful dialogue around the above topics every time the APP live broadcast.
Image source: Courtesy of the interviewee
<h2>The four meanings of common prosperity at this stage</h2>
Li Zhan pointed out that in the first four decades of reform and opening up, what we have been pursuing is "first rich to drive later wealth" and "efficiency first, taking into account fairness". At present, China has grown into the world's second largest economy and its national strength has been greatly enhanced.
However, after the impact of the new crown epidemic last year, it can be seen that the world's major economies are now placing more and more emphasis on the common sense of gain of all people. In this context, we should pay more attention to fairness in the context of efficiency priority.
Li Zhan believes that common prosperity at this stage should have four meanings: First, emphasize high-quality development. Economic backwardness is unlikely to achieve common prosperity. The second is that everyone should have social opportunities for self-development and self-realization. Third, we must let the people share the fruits of economic development. The fourth is to emphasize the government's regulatory function to ensure and improve people's livelihood, involving a series of policies such as housing, education, medical care, old-age care, poverty alleviation, and child support. At the same time, it is necessary to narrow the gap between urban and rural areas, the gap between regions, and the gap in income, so as to achieve common prosperity.
Specific to the steps and means to achieve common prosperity, Li Zhan suggested:
On the one hand, through the reform of the income distribution mechanism, the income of residents will be increased, especially the income of the middle and low income groups, while the income of the middle-income group will not decline. That is to say, through the reform of income distribution, the size of the middle-income group will be expanded to form an olive-shaped society.
On the other hand, it reduces the cost of living of residents, including education, medical care, housing and other livelihood projects. At present, these livelihood projects are precisely the parts of the middle and low income groups that are under the greatest pressure. Under the premise of emphasizing the role of the market, it is necessary to strengthen supervision and control of enterprises involving people's livelihood such as food, clothing, housing, education, medical care, etc., as well as Internet platforms, to ensure standardized development.
It is worth mentioning that Li Zhan particularly stressed that optimizing primary distribution should become a consistent focus, which is the basis for achieving common prosperity.
Studies have shown that the disposable income of primary distribution residents, which contributes up to 85% of the three distributions, is the most important link. Primary distribution emphasizes the market and efficiency, which is a relatively difficult place for policies to change, but it must be paid attention to.
In recent years, the rate of growth in labor compensation has been slower than the growth rate of capital compensation. It is necessary to improve the market-oriented allocation and remuneration distribution mechanism for labor, science and technology, land, and other elements. First of all, it is necessary to optimize the industry, and the increase in the operating profits of enterprises can absorb more employed people and give more remuneration.
Second, we now place special emphasis on innovation, emphasizing manufacturing as the foundation, so we need to achieve market-based remuneration and favoritism for patented technology researchers, skilled workers in the industry, etc. This is not only part of the income distribution, but also an important mechanism for stimulating innovation.
<h2>Pay attention to the three major tracks of consumer leader, new energy and wealth management</h2>
In addition, Li Zhan specifically pointed out that the capital market will play an important role in achieving common prosperity.
First of all, China's capital market has developed very rapidly in the past three decades, and various financial management methods such as public funds and private funds have also developed rapidly, providing good investment channels for the people and increasing the source of property income.
Secondly, the most important role of the capital market is the optimization and allocation of resources. Resources will be inclined to the direction of industrial policy guidance, and high-tech enterprises will obtain higher valuations in the capital market to incentivize them to invest more in research and development in the future, thus forming positive feedback.
Third, when Chinese companies continue to grow, their stocks will also gain appreciation several times or even more than ten times, and eventually they will also give back to the majority of investors.
Li Zhan believes that from the perspective of the capital market, in the process of achieving common prosperity, some industries and tracks can obtain long-term investment opportunities, which deserves investors' attention.
First of all, the realization of common prosperity contains the doubling of middle-income people and the improvement of the income level of middle- and low-income people, and the long-term pull on the consumer industry is obvious, so the consumer leader with advantages is worth paying attention to.
Second, the realization of common prosperity will inevitably be accompanied by industrial optimization and adjustment and high-quality economic development. New energy enterprises, including photovoltaics, some manufacturing enterprises that meet the standards of "specialization and specialization" in the "double carbon" industry, as well as the emerging research and development service industry have very good development prospects.
In addition, under the structure of the aging population, combined with the growth rate of personal wealth, wealth management will become a good track for the future financial industry, and can pay attention to securities companies with advantages in wealth management, asset management and other businesses.
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