2012-04-03

Wen Jiabao: With common purpose, the central government will smash the banking monopoly

At least the reform rhetoric is getting heated in China as Wen Jiabao pledges to smash the bank's monopoly during his tour around southern China. China's outlook remains negative in the short-run and there will be shifts between leading sectors, but if this rhetoric is followed by action, China can again move ahead of the bank captured Western economies.

温家宝:中央已统一思想要打破银行垄断


Here's the Google Translate of the article to give you the gist of it:
According to the Voice of China "Network News" reported on April 1st to the 3rd, Hu Jintao, Premier Wen Jiabao in Qinzhou, Quanzhou, Fujian Province, Putian, Fuzhou and other places on the economic operation of research. Wen pointed out that the overall economic operation in China is good, although some of the major economic indicators fell back, but still at a reasonable level. To fully see the favorable conditions and positive factors, the firm to do a good job of economic confidence in the work. The same time, we must implement a flexible and prudent macroeconomic policies, appropriate and timely pre-tune fine-tuning.

Premier Wen Jiabao's recent visit to the study, Guangxi, Fujian would like to know the current economic situation. Three days, he went to Fujian seven wolves, three trees, Fuyao and other three companies to understand the situation, also went to a small micro-enterprise e-commerce, advertising and media to understand the situation, and held three forum and entrepreneurs. At the forum, Wen said:

Wen Jiabao: I come to this, the main purpose is to look at the current economic situation, for you, is the operational status. I know most of the situation this year is the pressure of economic downturn, and then a big, corporate losses.

Fujian Peak Group chairman Jingnan enterprises is still in profit, but the lack of domestic demand, external demand weakness.

Jingnan: At present, there is a problem? Is the domestic demand is insufficient, leading to increased inventory levels, but also a comprehensive cost on the rise, leading to export growth did not lift it.

Jingnan recommend continued to fall in the bank deposit reserve ratio to ease monetary policy. Wen said:

Wen Jiabao: You just mentioned, the state must ensure that the financial certain liquidity and loan size. Today, our governor is also, we propose that the economic development, appropriate timely pre-tune the fine-tuning, including the regulation of the currency.

From the Group of Heng Xu Lianjie at the same time is also a small loan company's chairman, he said that the financing difficulties of SMEs is also reflected in the funds does not match the needs of enterprises.

Xu Lianjie: business often come to be loans, but funds can not get bit; when funds become available, the business lost. This is a problem long been plagued by small and medium-sized corporate entities.

Wen said that private capital into the financial sector is to break the monopoly, the Wenzhou pilot some successful experience across the country.

Wen Jiabao: financing costs, in fact, I frankly, I said that our banks make a profit too easy. Why? A few all banks in a monopoly position, only to it where the loan before the loan was very difficult elsewhere. To resolve their private capital into the financial, fundamentally speaking, or to break the monopoly. The Central Committee has unified this idea, you can see the pilot in Wenzhou. I think the pilot in Wenzhou, some successful, to promote the country, some now in the country.


China Infrastructure Machinery Holdings Limited is a domestic construction machinery industry is the first overseas listed companies, the output value and sales have declined year on year for 1-2 months, Premier Wen asked the company president Qiu Debo:

Wen Jiabao: You are engaged in the machinery?

Qiu Debo: loaders, excavators, road rollers, forklifts ...

Wen Jiabao: infrastructure.

Qiu Debo: Contact.

Wen Jiabao: I would like to pre-tune fine-tuning is actually a focus of the ongoing projects under construction must ensure that the funds.

Qiu Debo: a recent move, I have found. For example, our tunneling machines, has been continuous for six months, only a dozen orders, all of a sudden began to emerge in March seventies and eighties, started to move.

Wen Jiabao: for instance, railway last year was 700 billion investment this year, fell by 500 billion of investment, 500 billion of investment should be in place so that the railway line under construction to start ah ... a Wenzhou accident impact, but We can not but comprehensive look at our railway these years of development, including high-speed rail development, the positive impact to economic and social life of the masses.

We can not too quickly, blindly growth in China, the so-called domestic demand including consumption and investment demand, investment demand, domestic demand also expanded up to me give a very simple example, not a lot of migrant workers earn to wages, the domestic demand to expand from where?

And entrepreneurs forum, Wen said:

Wen Jiabao: dealing with the current macroeconomic situation, to overcome the difficulties we face, still the relationship between the stable and rapid economic development, structural adjustment and management of the relationship between inflation expectations, it is not empty. Although we encountered difficulties, but we should still have confidence: confidence in China's economic confidence in the development of enterprises.

Update: Reuters finally got around to covering the news. China's Wen says bank monopoly must be broken: state media
China's state banks make money "far too easily" and their monopoly on financial services has to be broken if cash-starved private enterprises are to get timely access to capital, state media cited Premier Wen Jiabao as saying on Tuesday.

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