4 trillion investment drives the hoisting industry to look forward to nirvana

The sudden financial crisis has brought heavy damage to the machinery manufacturing industry. Most of the national investment of RMB 4 trillion and the economic revitalization plan of ten industries has been allocated to state-owned enterprises, which has brought numerous crises to the machinery industry, especially the development of private small and medium-sized enterprises. At the same time, it has also added variables to the development of the hoisting machinery industry, which is closely related to processing and manufacturing. I learned from some overseas managers in Changyuan, Henan Province, the home of China's hoisting machinery, that after the Spring Festival, their orders were down compared to the same period in the past, and some contracts signed last year were shelved or terminated due to lack of funds from purchasers or declining corporate performance.

"Ensuring employment and promoting growth" are two important "magic weapons" for overcoming the financial crisis this year. However, to make full use of the "two guarantees", we must ensure the steady development of enterprises, especially private enterprises and small and medium-sized enterprises. Because private enterprises and small and medium-sized enterprises are the vital lifeblood of our national economy, their creation of GDP accounts for 66% of the country, the number of social employment is as high as 70%.

We can say that in the global economic crisis still bottomless present, how to ensure small and medium-sized enterprises of our country to survive the economic "frigid winter", the key is in two points: One is to crack the financing ice; Second, we will actively participate in the government's stimulus investment plan. As for how to finance, Wang Wenbiao, a member of the National Committee of the Chinese People's Political Consultative Conference, put forward practical proposals at this year's two sessions, he solemnly suggested increasing national debt and local government debt to private enterprises and small and medium-sized enterprises to support technological innovation, staff training and industrial upgrading of private enterprises and small and medium-sized enterprises.

It is reported that the total issuance of national and local government bonds will reach 500 billion yuan this year. If the state takes out part of its national debt to fully support private enterprises and small and medium-sized enterprises, it will not only break the financing bottleneck, promote structural adjustment and upgrade the industrial level, but also provide more jobs and share the country's worries.

However, despite the consensus from the central and local governments on the need for smes to grow, including Premier Wen Jiabao's public pledge in the government report to favor smes in financing and government investment projects, private and smes have not received equal national treatment in this round of national campaign to expand domestic demand.

No matter the new regulation of the new loan financing of 5 trillion yuan this year, or the national expansionary economic stimulus plan of 4 trillion yuan, at least so far, this huge financing and investment cake, has been mostly cut by state-owned enterprises, even the cream on the side of the cake, small and medium-sized enterprises are difficult to taste.

Let's start with the target of 5 trillion yuan of new loans set by the central bank at the beginning of this year. For small and medium-sized enterprises and private enterprises, there is no optimism. The data showed yuan loans increased by 1.62 trillion yuan in January and nearly 1 trillion yuan in February, and have now reached half of the target figure of 5 trillion yuan. According to bank officials, more than 90 percent of the new loans achieved in January this year went to state-owned enterprises winning bids for government projects.

As for the central government's 4 trillion yuan economic stimulus plan, the vast majority of these investment projects worth hundreds of billions or even trillions of yuan have been divided up by state-owned enterprises. In particular, the government's direct investment of over one trillion yuan is the operation of state-owned enterprises. State Grid alone, for example, has cut out nearly trillion yuan of the fiscal pie. As some argue, even the small parts such as power switches of this super-large national enterprise may not be allocated to private enterprises outside the system. Only those private enterprises with direct interests are likely to receive a poor order.

From the above analysis, we can know that, whether in the allocation of new credit lines, or in the national stimulus investment plan, almost become the exclusive feast of state-owned enterprises. Obviously, once this situation continues, it will not only affect the process of China's economic recovery, but also bring intangible pressure to the future employment situation, and also bring heavy damage to China's hoisting machinery industry. If the initial new loans do not lend a helping hand to small and medium-sized enterprises, if the initial 4 trillion yuan investment plan is mainly dominated by state-owned enterprises, then the later new loans (there is still 2.4 trillion yuan left) must be tilted to private enterprises and small and medium-sized enterprises; If there is a larger state investment plan later, private enterprises must be involved; Also, the government should take the initiative and implement as soon as possible Wang Wenbiao, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), who suggested using national debt to raise funds from private enterprises and small and medium-sized enterprises.

Investors in private companies and small and medium-sized enterprises should make good use of government and private capital to actively cope with the current crisis.

In the two sessions just ended, Premier Wen Jiabao of The State Council at the press conference to vigorously support the development of small and medium-sized enterprises, for the factory manager of small and medium-sized enterprises played a shot in the arm. I believe that in the later economic plan of the country, small and medium-sized enterprises can get a satisfactory answer, but also look forward to the hoisting machinery industry can become stronger in this crisis.