Managing finance and stabilizing real estate … China’s economy will do six major things in the second half of the year.

　　BEIJING, Beijing, July 28 (Reporter Li Jinlei) China’s economic situation has been stable and improving in the first half of the year. What should China do in the second half of the year? In this regard, the central government has made it clear that it is necessary to adhere to the general tone of striving for progress in stability and focus on six aspects of work, including rectifying financial chaos, stabilizing the real estate market and resolving local debt risks.

　　What do you think of the economic situation in the first half of the year?

　　— — Steady progress, deepening structural adjustment

　　To do a good job in China’s next economic work, we must first accurately judge the current economic situation. The the Political Bureau of the Communist Party of China (CPC) Central Committee meeting held on July 24th held that the economy operated in a reasonable range, the main indicators were better than expected, urban employment increased steadily, fiscal revenue, corporate profits and residents’ income increased rapidly, and quality and efficiency rebounded.

　　"The overall judgment is that the economic situation in the first half of the year was stable and the structural adjustment was deepened." Yang Weimin, deputy director of the Central Financial and Economic Leading Group Office, once again summed up the economic situation in China at the press conference held by the State Council Office on the 27th.

　　Behind these judgments is the support of groups of data. The data shows that GDP in the first half of the year increased by 6.9% year-on-year, an increase of 0.2 percentage points over the same period of the previous year, which is the highest value since the fourth quarter of 2015. There were 7.35 million new jobs in urban and rural areas, an increase of 180,000 over the same period of last year. The overall price level remained stable, and the CPI rose by 1.4% year-on-year, which was the same as that in the first quarter. After deducting the price factor, the per capita disposable income of residents actually increased by 7.3%, which continued to be higher than the economic growth rate.

　　"Looking at the economic situation depends on both the present and the long-term; It depends on both indicators and expectations; We must see both achievements and problems. " Yang Weimin believes that although the economy is stable and improving in the first half of the year, there are still some problems. For example, the problem of poor circulation in the real economy is still serious, and the task of preventing and resolving financial risks is still arduous. The long-term mechanism for the stable and healthy development of the real estate market has not yet been established, and the pressure of rising enterprise costs is also increasing. In addition, the trend differentiation of regions, industries and enterprises is also intensifying to some extent.

　　What’s the keynote for the second half of the year?

　　— — act on the general principle of pursuing progress while ensuring stability

　　Fully affirm the achievements without avoiding the problems. A scientific judgment of China’s economic situation is also the basis for doing a good job in economic work in the second half of the year. In the second half of the year, what is the tone to do?

　　In this regard, the the Political Bureau of the Communist Party of China (CPC) Central Committee meeting set the tone: to do a good job in economic work in the second half of the year, we should adhere to the general tone of striving for progress while maintaining stability, better grasp the relationship between stability and progress, balance, opportunity and degree.

　　How to understand striving for progress while maintaining stability? Yang Weimin believes that stability is the main tone, that is to say, we should strive for progress on the premise of maintaining overall stability. However, striving for progress in stability is not inaction, not strong stability and mechanical stability, but doing something and working hard on the premise of grasping the degree.

　　Yang Weimin also said that it is very important to grasp the balance, the opportunity and the degree while doing something. We should not only prevent blind leaps and bounds, but also prevent timidity and inaction, both to prevent "going too far" and to avoid "not being as good as".

　　How to do it in the second half of the year?

　　— — Focus on six aspects of work.

　　How to carry out economic work in the second half of the year? Yang Weimin said that the central authorities stressed that efforts should be made to do a good job in six aspects in the second half of the year: First, unswervingly deepen the structural reform of the supply side. Second, actively and steadily resolve the accumulated local government debt risks. Third, deepen and solidly rectify financial chaos. Fourth, effectively stabilize the real estate market. Fifth, stabilize foreign investment and private investment. Sixth, attach great importance to the work of people’s livelihood.

　　The reporter noted that "deleveraging" in the supply-side structural reform, local debt, financial chaos, real estate market and investment all involve finance, and "keeping the bottom line of systemic financial risks" was also identified as one of the goals of China’s economic work in the second half of the year.

　　Wang Zhijun, director of the First Economic Bureau of the Central Financial and Economic Leading Group Office, pointed out that both "black swan" and "grey rhinoceros" may impact the bottom line of financial risks. For the hidden risks of "grey rhinoceros", such as shadow banking, real estate bubble, high leverage of state-owned enterprises, local debts, illegal fund-raising and other issues, it is necessary to find out the situation, distinguish the priorities and the degree of influence, highlight the key points, and take effective measures to properly solve them.

　　"In the second half of the year, we should do a good job of deleveraging, because this is the source of risk." Yang Weimin pointed out that the National Financial Work Conference emphasized that deleveraging of state-owned enterprises should be the top priority. If state-owned enterprises deleverage, the leverage of the enterprise sector will definitely decline, and the leverage of the entire national economy will also decline. This is to prevent and control from the source. We can’t let the leverage ratio continue to rise in order to maintain growth.

　　Gao Feng, spokesman of the Ministry of Commerce, mentioned at a regular press conference on the 27th that he would continue to do a good job in preventing foreign investment risks with relevant departments to ensure the healthy, standardized and orderly development of foreign investment. For foreign investment in real estate, hotels, cinemas, entertainment, sports clubs and other fields, it is recommended that relevant enterprises make prudent decisions.