Economic Daily Jin Guanping: Promote idle and inefficient funds to be revitalized

The efficiency of fund use is of great significance to smooth economic and financial circulation. The Central Financial Work Conference proposed that financial resources that are inefficiently occupied should be revitalized and the efficiency of fund use should be improved. This sets the focus for doing a good job in monetary and credit work and promoting high-quality financial development at present and in the future. We must deeply understand the connotation and role of revitalizing existing funds, scientifically view changes in the total amount of credit and credit structure, and promote the effective improvement in quality and reasonable growth in quantity of monetary credit and social financing.

In recent years, the transformation of economic structure and the return of finance to its roots have brought profound changes to financing growth and financing structure. Compared with other financing methods, my country’s loan growth has been stable at a high level of more than double digits, maintaining support for the real economy. At the same time, we must also note that not only incremental credit can support the real economy, but revitalizing inefficient existing loans can also contribute to economic growth. At present, the balance of RMB loans in my country exceeds 230 trillion yuan, with an increase of about 20 trillion yuan every year. The stock of funds is much larger than the annual increment, and the corporate assets and derived monetary funds formed by the existing loans continue to play a role in the economic cycle. It can be said that revitalizing inefficiently occupied financial resources and improving the efficiency of fund use will not be reflected in an increase in loans, but it can still inject new impetus into high-quality economic development.

Improving the credit structure is an integral part of the issue of revitalizing existing funds, and it can also reflect the laws and new characteristics of subsequent credit growth.

On the one hand, we must continue to strengthen high-quality financial services for major strategies, key areas and weak links, and optimize the capital supply structure.In recent years, the People’s Bank of China has focused on giving full play to the dual functions of monetary policy tools in both volume and structure, encouraging and guiding financial institutions to invest more financial resources in key areas such as technological innovation, manufacturing, green development, and inclusive small and micro businesses. At the end of September this year, the balance of loans to specialized and new enterprises increased by 18.6% year-on-year, the balance of medium and long-term loans in the manufacturing industry increased by 38.2% year-on-year, the balance of green loans increased by 36.8% year-on-year, and the balance of inclusive small and micro loans increased by 24.1% year-on-year, all significantly faster than All loan growth rates.

On the other hand, it should be recognized that in the process of economic structural transformation and upgrading, there will be replacements between different components, and related credit needs will also change and adjust accordingly.Take my country’s real estate market as an example. Before 2018, new real estate loans once accounted for 40% of all loan increases. With the profound changes in the central level of housing demand, the demand for real estate loans has tended to decline, and this proportion has naturally declined. In recent years, the increment and proportion of loans in key areas such as technological innovation, manufacturing, green development, and inclusive small and micro businesses have increased significantly, while loans in areas such as real estate and local financing platforms have slowed down. After combined calculation, although credit growth has slowed down, the quality and efficiency of serving the real economy have significantly improved.

In the new stage of development, it is necessary to have more diverse perspectives when analyzing financial aggregate indicators. In the short term, blindly insisting on “higher year-on-year growth” is not only inconsistent with the laws of economic development, but may also lead to “inflated growth” and “idling”, and even overdraw the medium and long-term growth potential. therefore,It is necessary not only to pay more attention to whether the reasonable financing needs in key areas are fully met, but also to pay more attention to a more comprehensive social financing scale, or to observe the cumulative increment, balance growth, etc. over a longer period of time.

Stable credit growth and balanced lending are more conducive to creating a good monetary and financial environment. In the past few years, although loans have increased year-on-year every year, the fluctuations of “big months are too big and small months are too small” are more prominent. This is largely due to the “increase in growth” in the credit structure during the process of credit quality improvement and slowdown. The “side” and the “minus” side may not be synchronized in time.

At present, our country’s currency and credit stock is already very large. It can give full play to the role of idle and inefficient stock funds. Even if new loans and currency growth are slower, it can effectively support the real economy. It should be recognized that revitalizing existing loans, improving the efficiency of existing loans, and optimizing the direction of new loans are equally important to supporting economic growth.

Risk warning and disclaimer

Market risk, the investment need to be cautious. This article does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, views or conclusions contained in this article are appropriate to their particular circumstances. Invest accordingly and do so at your own risk.