Abstract introduction: On March 29, 2017, the information exchange of the national abrasives industry in the spring of 2017 and the 65th China Corundum Silicon Carbide Fair were held in Qingdao. At the meeting, the researcher of the Ministry of Finance, the Doctor of Economics, and the Ministry of Finance Comprehensive economic forecasting and fiscal policy analysis group...
Guide: On March 29, 2017, the spring of 2017 national abrasives industry information exchange and the 65th China Corundum Silicon Carbide Fair was held in Qingdao. At the meeting, the researcher of the Ministry of Finance, the Doctor of Economics, and the Ministry of Finance Mr. Zhang Peng, member of the Economic Forecasting and Fiscal Policy Analysis Group and the head of the Macroeconomic Operation and Fiscal Policy Research Group of the Chinese Academy of Social Sciences, made the 2017 Macroeconomic Situation and Economic System Reform - and the 2017 "Two Sessions" and the Central Economy Work Conference Study Report. The following content is organized according to the recording:

Mr. Zhang Peng, Research Fellow, Institute of Economics, Ministry of Finance
First, the "L" type bottom operation and the "two sessions" to determine the overall development strategy Beginning in 2016, the Chinese economy basically entered the bottom of the L-type operation. Under this premise, economic development must be "stable" to become the overall situation of the central government. The central government must stabilize the situation, problems, contradictions, and transformational forces in this process. The really stable method is not to seek stability and stability, but to actively seek and cultivate new factors and variables in the process of stability. This stability is not static stability, but dynamic stability. The bottom operation is to accumulate new kinetic energy and elements on a stable basis. It is necessary to strive for progress in stability. This is the general tone of our work this year, and it is also the methodology for seeking the transformation and development of China's economy in the current situation.
But as everyone knows, we have completed four comprehensive strategic plans. Next, we must move on the premise of adhering to the problem-oriented, then who will be the main line of action? The central government gave a very clear answer, that is, supply-side structural reform. The supply-side structural reform clearly solves two problems. First, the supply side, what is the supply side, or the side that produces new goods and services. In fact, the supply side emphasizes the real economy, and the real economy is the foundation of the country. This year we must focus our development on the real economy. We must see that the real economy can transform. Second, it is structural. Since it is structural, we must abandon many quantitative thinking and scale thinking in the past and focus our attention. To improve the structure, improve the quality, and improve the efficiency. The development of China's economy has moved from the quantitative era to the quality era. This year, our supply-side reforms will fall to our industrial level, enterprise level, quality level, product level, and artisan level. From last year's economic work conference to this year's two sessions, we can clearly see that our work focus has fallen to the development of the real economy, with the transformation of supply-side structural reform as the core.
There are two macro risks that China’s economic “L” type bottom operation will encounter this year: First, the slowdown in production growth. There are three specific problems here:
1. High risk of depreciation of productive fixed assets. Everyone is an entity. Two situations will lead to the acceleration of depreciation of productive fixed assets. First, the economy is in transition. If an economy wants to promote transformation in a large amount, it will lead to accelerated depreciation of a large number of production equipment. After investing a large amount of new equipment into production, banks have rarely accepted the production of fixed assets as collateral since the fourth quarter of 2015, because your intrinsic value is unstable, causing the interruption of many production companies' financing chains; It is technological progress, or innovation-driven, many production processes and equipment. Under the premise of rapid advancement in technology, your production cycle is getting shorter and shorter, and the depreciation pressure of equipment is getting bigger and bigger. This should have feelings, but transformation. Upgrades must be done, innovation and development must be done. Under this premise, we are unlikely to reduce the depreciation rate of equipment. How to solve this problem?
Our main idea is three aspects. The first is to let innovation cover the market with the fastest possibility. If you form innovation, you can penetrate the market in large quantities and generate benefits. Whether you are a state-owned enterprise or a private enterprise or a foreign-funded enterprise, you must ensure the status of innovation as a principle. The government must change its thinking on the management of innovation. The government cannot easily say no to the management of innovation. It is necessary to identify new things according to whether there are violations in actual activities. Secondly, accelerated depreciation will lead to the loss of a large number of stock assets. Through the incremental innovation assets to make up, mainly in intellectual property, we must implement integrated management of intellectual property rights, protect intellectual property rights, and accelerate the pricing and pledge of intellectual property rights. Here we arrange two Important financing, one is the bank mortgage of intellectual property rights, and the other is the fund investment products of intellectual property rights. It provides support for our innovative enterprises to quickly realize the liquidity of intellectual property rights; finally, the functional attributes of assets and Moderate separation of value attributes, freeing value attributes from function Sexual depreciation, to complete the asset capitalization reform, we all know that assets have two attributes, one is the premium attribute, and the other is the income attribute. There are three main financing channels for the asset: 1. The equityization, this is the simultaneous inheritance of the premium attribute and The path of income attribute, but the time is long and the threshold is high. This year, we must speed up the IPO process and speed up the listing of the main board market. The GEM market should vigorously encourage development, and at the same time, we must do a good job in IP valuation and income valuation. It’s already over 10,000. The personal estimate is that the upper limit is 14,000. So everyone has to hurry up this year. The counter market will hold the fifth central financial conference this year. Whether the local market will gain financial market rights is worth looking forward to; Market, not only banks can do, folk can also do, this path is the widest path, is the main path of asset capitalization, but bonds can not share asset premium attributes, only income attributes; 3, insurance assets, insurance contracts can Make the value of our assets not depreciate, the benefits are casual, flexible, and bad anytime, anywhere You can not inherit property premium income and assets, that can only hedge against inflation, can be used as a supplementary way.
We can see that a listed company in the process of transformation, as long as he is in the right direction, although it will generate a large amount of asset depreciation, but his stock price will not fall, which greatly reduces the risk of asset depreciation, the rational use of the above three paths It will be of great help to us to resist asset depreciation.
2. High leverage risk. From the current point of view, the leverage ratio of the whole society in China is 156%, which should be said to be high, and the highest among them is industrial enterprises. As we all know, the leverage ratio in economics is the debt level of your enterprise, that is, your total. How much of the assets are made up of debts, the higher the debt ratio, the higher your leverage. In other words, the asset coverage of our industrial enterprises is an important indicator of leverage. At the end of last year, our industrial enterprise asset coverage rate was 57.3%, which translates into a leverage ratio of 245%, which is significantly higher than the internationally recognized 180-220% reasonable range.
For this problem, the central requirement is to reduce the leverage ratio of enterprises as the top priority under the premise of not controlling the total leverage. In particular, we must first base ourselves on the enterprise itself, and encourage enterprises to conduct equity financing and introduce strategies. Investment, encourage enterprises to fully exploit and use existing assets. Now there are many existing asset banks that are not acceptable to the enterprise, but it does not mean that the market does not accept it. The part that the bank does not accept can be made into asset securitization products. There is also a debt-to-equity swap. It is difficult for our private enterprises to become direct beneficiaries, but it does not prevent us from participating in this process. The marketization of this round of debt-to-equity swaps is different from the previous banks’ risk-taking, but by capital mortgage companies. Taking risks, the capital mortgage company will choose the right products more carefully. Therefore, most of the debt-to-equity swaps that are finally included in the marketization are products that are not very good in collateral, but the market returns are obvious, which is more suitable for our private enterprises to enter. Finally, the state will strictly limit the leverage ratio of state-owned enterprises, include the assessment of the leadership team, and reduce the behavior of state-owned enterprises with no scruples in financing and squeezing the market. At the same time, the government is going to use three balance sheets (government balance sheets, corporate balance sheets, household and household balance sheets) to properly adjust the proportion. This year our government will increase spending and expand Positive fiscal policies such as deficits, to take part in the leverage of our business.
3. Repair and improvement of the asset circulation chain. In the fourth quarter of 2016, from the perspective of our policy research and formulators, the development conditions of the real economy should be very good, the cost will drop sharply, and government regulation will be greatly controlled, but from the perspective of the operating sensator, The pressure has not only decreased, but has increased. It is because the traditional financing chain has been interrupted, and the way enterprises rely on rolling development has been under great pressure, and the overall development momentum has fallen sharply.

So how to solve the problem of chain interruption? First of all, we have to let the traditional mortgage assets in the two interruptions better accept the financial market, then what kind of enterprises are eligible for financing in the market, I think that in order to obtain standardized low-cost market financing, not all enterprises Qualified, there are only two categories, the first category is that there are assets and money, the second category is good business, and the income situation is clear. You have no collateral and no prospects for earnings, so you can get support from the market. In other words, companies that can get financing must demonstrate that your business is unique and competitive. As long as you have the ability, from this year on, we must build three major income rights pledge financing, one is to promote the bank to build the right to pledge loans, this method is collateral on the surface, in fact, there is no real collateral for the enterprise, It belongs to the category of credit loans. The second is to allow enterprises to issue specific project income rights. The third is to encourage support enterprises to take project income as investment products of the fund.
Second, we must explore new assets that can be mortgaged, and whether the company has credits that can be mortgaged. For the new collateral assets, this is currently not easy to find, the collateral assets of the company have been used up, then the next can only be found in two aspects, the first aspect is the production process, abrasives industry The enterprises have stocks, there are inventory orders and warehouse receipts, then the government intends to allow enterprises to do warehouse receipt financing or warehouse receipt pledge, the problem to be solved here is the legal property of the warehouse receipt, now the warehouse receipt is only the delivery certificate, to be in the law At the level, it is raised to the property right certificate, and the goods order is consistent. This requires our warehousing system and the logistics system to be adjusted and adjusted. Everyone should see the business opportunities inside. The second aspect is the production behavior. Enterprises must use electricity, water, and sewage to set these behaviors into rights, such as emissions rights, water rights, power rights, etc. If you save these rights, for example, you originally wanted this year. With 100,000 kWh, you only use 80,000 kWh, and the saved part can be used as a collateral.
Finally, we must let investment assets help productive assets. Nowadays, it is private enterprises that are difficult to finance. Our private entrepreneurs now have no big financing space from the perspective of enterprises. However, from a personal point of view, it is still a bit of money. Now, there are pressures on business operations, and banks do not give You have a loan, but you have two houses in Beijing. You can use the house to mortgage. Then you will definitely think that the real economic pressure is so big now, and the house is in a high premium period. If the loan comes out as an entity, it will not cost. It is.
Then we need to do two things. One is to change the rate of return, to increase the rate of return on the real economy, to lower the rate of return on investment assets, to regulate through taxation from the government's perspective, and to reduce corporate tax burden. This year's tax cuts have In two major aspects, the first is to change from the fourth to the third. The Prime Minister said that this year's tax reform cannot stay on paper. It is necessary to directly reduce the tax rate so that enterprises can truly feel the tax burden is reduced. Second, In the enterprise income tax reform, the policy of halving income tax for enterprises with taxable income of 300,000 yuan or less this year will be expanded to 500,000 yuan. For enterprise R&D expenses, not only will not be taxed, but also double the deduction, your research and development costs 100, according to 150 Block deduction, this year, on this basis, increase by 25%, into 175. This year, you can choose not only half-cycle depreciation, but also double-balanced depreciation. It works well for newly-improved fixed assets. The higher the value of your equipment, the lighter the tax burden of the year. For fixed assets of less than 1 million, you can The investment is tax-deductible, and the government has to work hard to reduce taxes on the real economy. The second thing is if you are not willing to take your own house as a mortgage, then you are willing to use 20 years of rental rights as a mortgage? Maybe you will agree, then we must divide the use rights and income rights of investment assets into separate reforms. Specifically, first, the real estate market should push the lease rights and property rights separately, and vigorously promote the legislation of leased real estate rights. The value of using the housing lease is helpful for the development of the real economy; the second is that we must implement the reform of the three rights system of ownership, contracting rights and management rights on the agricultural land. The ownership belongs to the collective, and the management right can fully participate in the financial activities. The capital form of the asset is as long as the capital value of the land is on the national book. As for whether the capital operation is private or state-owned, it is left to the market.
Second, the operation of the asset market, now forming a dissipative structure, asset prices are getting higher and higher, and yields are getting lower and lower. Because the asset price pricing method is the marginal price pricing method, the yield is the average price pricing method. You should know that you should know that we are selling 10,000 pieces of goods at the beginning of the year and 20,000 pieces of goods at the end of the year. We sold 100 pieces of goods this year. Then your operating income this year should be calculated according to 15000*100. This is the average price pricing method. Our GDP growth rate is calculated according to the increase of the average price pricing method. However, the real estate is not the same. The real estate is opened. At the beginning of the year, there are 10,000 flats and the end of the year is 20,000 flats. The total value of this real estate is calculated according to the 20,000 at the end of the year. This is the marginal price pricing method. Under this condition, the growth rate of the asset market must far exceed the growth rate of GDP. But the income is not good, the profit is not good, the value created by the enterprise is calculated under the average price pricing method. We are not over GDP, but the asset price can be far exceeded. Under this condition, the asset price and the yield are both downward. Not too possible. According to the normal principle, adjustments and collapses will occur. We must prevent this from happening and create stable conditions for the development of enterprises. Then we must expand the system, make our asset cake bigger, and rely on asset premium to lead our return on assets. Rising, land is a non-renewable resource. If you surpass the currency and the price of the property will definitely rise, then we have to make a premium to compensate for the lack of return on assets and maintain stability. But in this process, the recovery of the real economy is needed. If the real economy does not improve, then this kind of behavior is to drink and quench the thirst. You expand the bubble artificially and create a stable environment for the development of the real economy. If the real economy does not rise, the outcome will be more ugly.
As you can see, President Zhou Xiaochuan said at the Boao Forum that everyone should not waste the fiscal and monetary policy to create a stable market environment for everyone. Now, the currency may have to start the exit policy, and the process of incremental interest rate hike in the first half of the year. It has already started. In the second half of the year, it is more strictly controlled for the money release. In this case, it is a good thing for us. Once the interest rate hike is started, many asset premiums will come down, so the PK ability between the real estate market and the real economy will be Will weaken. The direction of our efforts this year is to let financial resources be allocated in a profit-oriented manner, rather than being based on premium capabilities. Many financial products are now considered from better returns, and this better return is the specialty of our real economy.
For the asset market, we mainly focus on two points:
1. Real estate regulation. This year's real estate regulation and control we must adhere to a principle of two principles, two strategies and multiple measures. One principle is that "the house is used to live, not for speculation." Many people see this sentence directly in the latter part of the sentence, but logically, this sentence appears only twice. The word is "use", so the complete logic of this sentence should be that the house is useful first, then it is used to live, not to speculate. Under this logic, since the house is useful, then building more houses, building houses, and building useful houses for ordinary people is an important part of the national market oriented in the national policy. The real estate industry must also be an important part of the country. One of the pillar industries must vigorously promote the development of the real estate industry and market. But beware, the house can only be used for living, not for frying. China's third-tier cities and above are the key targets for the real estate market. As everyone knows, if you come from these cities in the north, Guangzhou, and Shenzhen, you will almost always buy a house, so if you control the loan, you will control the direction of the real estate market. Investment-type loans should be treated differently by increasing the proportion of down payment and increasing leverage. The purpose of the whole regulation is to let the house go to live, not to speculate. In the process, many people cited the example, will not shake the government's determination to real estate regulation, the real estate market has no retreat.
The first two concepts are to suppress the real estate bubble and control the ups and downs of real estate. Last year, we were still talking about the risk of real estate bubble protection. This year we have definitely suppressed it, indicating that the current situation is no longer to be eased, but don't worry, we are not trying to squeeze the bubble, just control. The second is to prevent real estate from going up and down. It is important to emphasize that the ups and downs are mainly directed at the real estate market, not the real estate valuation. If you move the real estate valuation, it may cause large fluctuations in the real estate market. It should be noted here that the government is only here. To protect the residents' basic housing work, the government has no obligation or ability to intervene for the multi-level differentiation of the market itself, so don't expect real estate problems, the government will rush into the market, China's 300 trillion The real estate market is twice the total fiscal revenue of China. The 10% reduction is 30 trillion yuan, accounting for 40% of GDP last year. Who can support it?
Multi-strategy, the focus here is on leveraging. This involves adjusting the overall real estate market. The current construction pattern of real estate is called the three-high model. Real estate development enterprises are both development service enterprises and capital entities. They are highly indebted and high. A three-high enterprise with leverage and high assets. The next reform is to de-leverage the real estate enterprises. Specifically, it is necessary to actively promote the return of real estate enterprises to the real estate development service providers, adjust the company structure, and separate and divest the investment and financing links from high-indebted, highly leveraged heavy assets. The mode is transformed into a light asset management model with heavy service and heavy management. The task of the real estate enterprise is to buy a good land, carefully plan the construction plan, improve the construction of the community facilities, and as for the financing work, it must cooperate with external equity and creditor investors such as real estate trust investment funds. Real estate development activities, so that it is easy for the government to control, last Monday, our People's Bank of China has announced the management of real estate trust funds, which means that this reform has moved. We must note that the engineering contracting field will undergo major changes in the future. As an investor, the Chinese real estate market will change from the main body of home builders and buyers to four main entities, namely real estate development, real estate trusts, investment funds and home buyers. Under this premise, whether you are buying a house or doing it Investment can be separated. If you want to live, you can buy a house. If you are investing, you can buy a trust fund. Why do we have a lot of vacant houses? It is because you buy a house to invest. Now you don’t need to buy it directly after separation. A real estate entity that introduces funds from the real estate market into the real economy, supporting equipment renewal, innovation-driven investment, and corporate transformation.
2. Exchange rate issues. Looking at the depreciation pressure of China's exchange rate this year is still relatively large. The resolutions of the two sessions this year are to adhere to the direction of exchange rate market reform and maintain the stable position of the renminbi in the global monetary system. We can speculate that China's exchange rate policy has three directions this year. The first is to insist on the reform of exchange rate marketization. It is necessary to allow more entities to enter the Chinese foreign exchange market and turn the foreign exchange market from a trading place into an investment place. The pricing basis should not be the renminbi against the US dollar, but the renminbi against a basket of currencies, but the dollar is a very important one, and the third volatility will increase. Under these three points, the market is increasingly moving from a trading market to an investment and wind-oriented market, and exchange rate fluctuations are increasing, which will pose certain risks to our real economy and import and export management.
To solve this problem, on the one hand, the extension of the settlement period is appropriate, for example, from the date settlement to the one-month exchange settlement, you can choose your own optimal time point. On the other hand, it provides various types of hedging instruments, such as foreign exchange forwards. Now on this basis, a lot of explorations are carried out on paint trading, swap trading, and foreign exchange option trading. In the short term, these trading hedging methods will be with everyone. When we meet, we will effectively control exchange rate risk. To maintain the stable position of the renminbi in the global monetary system, this requires the renminbi to have three characteristics, stability, liquidity, and profitability. From the perspective of stability, our exchange rate of the renminbi against the US dollar should be maintained within a reasonable range without major changes. In terms of liquidity, some people say that China should increase foreign exchange control this year. I can tell you responsibly that our country is For foreign exchange control countries under the current account, as long as you are going out of trade and investment, there will be no shortage of foreign exchange this year. In terms of profitability, it is that my assets must remain stable. I must let others think that I should hold them. This needs to compare the profitability of the US dollar. The Fed has started the rate hike process this year. We must follow the Fed’s interest rate hike process. In this process, our currency cost will be relatively high this year. This issue is stressful for the real economy. However, in the medium and long term, it will get a lot of money in terms of the possibility of obtaining loans. Advantage.

Second, the current economic macroeconomic situation 1. The GDP operation situation has continued to slow down. This is mainly caused by the decline of efficiency factors, asset factors, rent factors and factor factors. It is necessary to enhance the effectiveness of these factors through reform. I just talked about more financial knowledge. Let's expand and talk about the industrial level. Everyone knows that the so-called economic rent is called monopoly profit. Then three subjects can generate monopoly. First, innovative rent, second, administrative rent, third. It is the monopoly rent of market monopolies. The innovative rent here is not the object of our reform. We must not only maintain innovative rents, but also support them vigorously, and encourage our innovation and development by encouraging policies. As regards administrative rents, we all know that the government is in the process of reforming the control services. At the end of this year, we will see two lists, one is the list of rights. This is for the government. The government can only perform duties in the list, that is, the government law is not authorized. Forbidden, the second is a list of responsibilities for pushing the blame, that is, as long as it is the content on the list, the government must perform, a responsibility must be borne by several departments, and the first question responsibility system is implemented. You only need to find one of the departments, he must You have fulfilled this responsibility together. For the market players, a negative list will be issued next year. As long as the above is not included, everyone can do it. If there is no prohibition, then we can wait and see. For the monopoly enterprises in the market, the state is undergoing reforms. This year is the year of energy reform. The three major industries of electricity, oil and gas are all included in the reform this year. Taking electricity as an example, this year we must start with the power grid industry. The power grid is mainly three things. In order to separate the main power grid and the power distribution system, in the future, the power distribution system, such as the residential power grid, should properly allow private enterprises to participate. To achieve large-scale competition on the power receiving side, we must set up a power trading market, not only the power grid enterprises, but also the power grid. Enterprises, not only useful electric enterprises, but also a large number of enterprises that have nothing to do with electricity, can enter, fully introduce competition and lead the development of the industry. So don't think that our current market is still an inertial market, and our market is undergoing a major transformation, undergoing major transformation adjustments and innovations.
2. Consumer market, we can increase our consumption growth chart.
We can see that our consumption volatility and passiveness were great last year. For example, China’s car sales last year was very good, and the annual growth rate was as high as 14.4%. Why is the car growth so fast, in addition to the normal market factors, there are other reasons. For example, in some cities in May, there are restrictions on the cards. In July, the new car preferential policies will be cancelled. At the end of the year, the new energy vehicle subsidies will be reformed. This constitutes a panic buying. This kind of passive consumption, overdraft A part of this year's car consumption capacity. So in the January-February this year, the growth rate of the car became -1%. Last year, in the passive consumer sector, in addition to automobiles, there were also home appliances and furniture. So if the real estate situation this year is not particularly good, these two industries will be subject to certain pressure.
3. Relevant information on fixed assets investment.
As you can see from the picture, the investment at the beginning of this year increased from 8.1% last year to 8.9%, slightly improved. However, the situation of our funds in place is a sharp decline compared with the same period of last year. Why is this happening? The biggest reason is the rise in the cost of capital. In this regard, the government will increase its support in the field of fixed assets investment. Our infrastructure this year is very strong. But the government is not very rich now. The government’s fiscal deficit this year is 3.18 trillion, a new high. The only way out is to implement the PPP model (government and social capital cooperation, a project operation model in public infrastructure), infrastructure It is an important downstream in the field of abrasives. Everyone has to adapt to this new model. This year's PPP is different from the past. The infrastructure under this PPP project can be made into asset securitization products. The Shanghai and Shenzhen stock exchanges have already indicated that As long as it is such a product, it will be hanged. Our private capitalists have to make more profits, and we suggest that everyone can participate.
4. The export situation is not bad from the overall situation. However, in February this year, our import and export balance was -91.5%, which means that the trade deficit was already in February. The main reason is the increase in import prices. Some people worry that China will The scale of imports will not be reduced because of the trade deficit, which will lead to further increase in domestic raw material prices. From now on, there should be no such policy arrangement. From the international situation, whether we limit it or not, this year's raw material prices will rise, which is a problem in the international market. In addition, we simply talk about service trade. We all know that we have tax rebates for export of merchandise trade, and tax rebates for service trade exports. In addition, we will also build funds to support trade in services exports this year. The state promotes manufacturing from production to production. Whether the enterprise changes, we can also think about adjusting the production form and organizational form of the enterprise.
5. The situation of introducing foreign capital has remained stable in the first two months of this year, but the situation in February was not very good. From our foreign investment, it fell by 52.8% in February. This is mainly because the government has strengthened supervision to avoid Unnecessary capital outflows in the capital market.
6, the real economy situation, in general, it is OK, we look at the PPI index (production price index).
The light-colored line is the purchase price index, and the dark line is the ex-factory price index. Some people say that the negative PPI growth of the Chinese economy for 39 months has had an impact on the Chinese real economy. I personally think it is incorrect, although it is 39. Monthly negative growth, but you can see that the light-colored line is always below the dark line, indicating that the reduction in purchase costs is higher than the decline in your ex-factory price, which did not cause much damage to the company, but in October last year, Both PPIs have turned positive. After the change, the company will be forced to increase the inventory. In the short term, it will be beneficial to the national economy. However, for enterprises, if the inventory investment is too fast, it will cause certain pressure. Now we can see that the light color line is already two percentage points higher than the dark line, which shows that our manufacturing industry's overall profit has been greatly tested.
We all know that a healthy industrial chain, the added value should be mainly in the production process complex, high level of technology, product irreplaceable links, let us look at the above picture. We divide the industrial chain into four parts, namely raw material extraction, raw material processing, intermediate products and finished product processing, finished goods and consumer goods. You can see that in February this year, the price of raw material extracting products rose by 33.5%, the processing of raw materials increased by 14.2%, the processing industry was 6.2%, and the finished products were only 0.8%. The profit rate of the whole industry was concentrated at the front end of the industrial chain. In this way, the pressure in the middle and rear sections is greater. The total profit of our coal mining and washing industry increased by 2.2 times compared with the previous year, the petroleum processing, coking and nuclear fuel processing industry increased by 1.6 times, the ferrous metal smelting and rolling processing industry increased by 2.3 times, and the non-ferrous metal smelting and rolling processing industry increased by 42.9%. The general equipment manufacturing industry grew by 0.2%, the specialized equipment manufacturing industry by 2.1%, the automobile manufacturing industry by 10.8%, and the electrical machinery and equipment manufacturing industry by 12.6%.
On this basis, I can give you a prediction of the economic situation in 2017. The GDP growth rate in 2017 is between 6.5 and 6.8%, which is basically stable. The price of real estate is flat throughout the year, and the growth rate of real estate investment remains at around 3% or even lower. The growth rate of fixed asset investment is expected to remain below 10%, but the growth rate of private investment is expected to accelerate, while the growth rate of state-owned investment is expected to decline. The growth rate of consumption remained stable, with an expected growth rate of around 10.5%. The import and export situation will be improved by a small margin, and the total trade volume of RMB denominations in the whole year will increase by about 2%. The cargo inflation pressure has risen significantly, and the probability of a CPI breaking 3 has increased.

Third, the side of structural reform and the development of the real economy What is the supply-side structural reform, in fact, is to let supply to match demand, our demand is changing, the central said that from personalized, diversified consumption will become mainstream, imitative And the wave of consumption is basically over. Under these conditions, our supply system needs to have both high quality and high efficiency, but also has lower costs. Under these two high and low conditions, we must produce a large number of high quality differences. Chemical products, this is called the completion of the supply side reform.
This year is the tough period of supply-side reform. We have included the moderate expansion of the main demand into our important support for this year's reform, so we will find that the more we will face the more unfamiliar needs. For example, 3D printing and additive manufacturing. When I went to the German Ministry of Economics, they told me that Germany’s demand for the main body was stable and common before the 21st century. After the 21st century, it was flexible and changeable. Before the 21st century, Germany needed enterprises to produce standardized products with low enough cost, good quality and high production efficiency. So the first thing to form a central peripheral model, that is, I have a central enterprise to produce products, and other companies around my production. Providing services, the second of these enterprises should expand the scale, improve efficiency and reduce costs. Third, we must extend the industrial chain to refine the division of labor to enhance the degree of specialization. Fourth, we must form an industrial zone, and everyone will form a range economy and production agglomeration. These policies are actually familiar to us, that is what we are currently doing. After the 21st century, in the face of flexible and changing needs, the supply system will change, and the original model will have problems. I produce engine parts for the automobile companies. Slowly, I found that the market demand has changed, so I The downstream automakers are proposing to change demand, but the downstream automakers have not felt the market change, he will reject me, then I will not move, and the disadvantage of the central peripheral model responding to the slow market reaction is highlighted. Once adjusted, all enterprises in the industrial chain must adjust. The Germans changed their minds and wanted to better enhance their efficiency. Then they need to shorten the production chain to one or two enterprises and directly face the market. The consequence of this is that the market efficiency is improved but the production efficiency is greatly declining. This requires a new technology and a new model of innovation to deal with, the new technology is 3D printing, the new model is additive manufacturing, we do not need to divide the layer of work through the reduction of materials, the key to achieve this concept is that the equipment can support the complex The production process, the second is that the material can meet the production chain. Americans also believe that the key to differentiated production to match individual needs is to break the central peripheral model, allowing many peripheral companies to directly face the market, redefine manufacturing, and turn manufacturing into a combination of “manufacturing + remanufacturing”, such as you.买了一个Ipad,买回来都一样,但是每个人都可以选择自己的耳机、外壳、支架,几个月后都不一样了,每个生产企业都直接面对了消费者,美国就这样将制造业打造成分布式模式,这样一来,3D打印的优势就很明显了,作为消费者我没有找到自己想象中的外壳,那我可以通过VR(虚拟现实)和AR(现实增强)技术来挑选合适产品,通过3D打印完成,我们可以看到这些新技术都是层层递进,目的就是为了匹配新的市场需求。
我们的供给侧结构性改革也是这样的目的,中央表示我们的企业未来应该是小型化、专业化、智能化。同时大家要注意质量第一有两个方面的内涵,一是你生产的产品质量要有保障,第二是唯有质量第一的产品才能匹配差异化需求,举个例子,你去买车,不管买宝马奔驰,你会不会关心这辆车能不能跑到20万公里?你关心的是大灯你喜不喜欢,内饰你喜不喜欢,这就是质量第一,共性的质量问题你不会去考虑,你考虑的是差异化的质量,只有质量第一,市场才能实现差异化的配置。

四、磨料磨具行业的几点建议对于今年中央的各项举措来看,对我们磨料磨具行业都有很大的支持,我们既是国家的“四基”(基础材料、基础技术、基础工艺和基础零件)的重要组成部分,也是我们国家“四新”(新业态、新产品、新技术、新模式)的核心支柱。
那么我们的行业首先肯定要坚持质量第一,要培养工匠精神,打造样板企业。
其次我们要利用好营改增的历史机遇,申请专业园区和低税走廊,申请了专业园区后接下来会有工业用地等一系列的改革以及园区内部统一税收的安排,大家还可以考虑到借助一些行业形成低税走廊,因为现在增值税是6/11/13/17四挡,如果你做得好,比如你为了供给侧改革要创新研发,那你成立一个制造服务型企业,为下游企业提供产品解决方案,这个过程中,你购进设备的增值税是17%,但是你自己才缴纳6%,这样你迅速形成一个低税产业集群。
同时,我们要寻求合理估值方法,主动开展资产资本化改革,避免行业高附加值、高杠杆率风险。
最后提升行业创新理念,成立行业知识产权综合管理机构,明确行业研发费用目录明细。

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