Last night, the top level issued the “Opinions on Implementing an Employment-First Strategy to Promote High-Quality Full Employment,” which can be said to be a substantial positive in the medium and long term.
The emphasis on "increasing the proportion of labor remuneration in primary distribution" is unprecedented. Previously, secondary distribution has always been emphasized. At the same time, it shows that the top leaders have begun to pay attention to employment issues, pay attention to grassroots income, and begin to really take measures to solve the long-term structural problem of insufficient domestic demand. At 13:00 noon today, the draft of the Central ZZJ meeting was released, and a huge amount of information came in, and there were too many good news to count.
Specifically involved in the following aspects:
First, we need to increase the intensity of countercyclical adjustments in fiscal and monetary policies to ensure necessary fiscal spending;
Second, we should issue and use long-term special national debt and local government special debt to better play the leading role of government investment;
Third, we need to lower the deposit reserve ratio and implement a strong interest rate cut;
Fourth, we should promote the real estate market to stabilize, strictly control the increase in commercial housing construction, optimize the stock, improve the quality, increase the loan issuance of "white list" projects, and support the revitalization of idle land;
Fifth, we should strive to boost the capital market, vigorously guide medium- and long-term funds into the market, and clear the bottlenecks for social security, insurance, and financial management funds to enter the market. We should support mergers and acquisitions of listed companies, steadily advance the reform of public funds, and study and introduce policies and measures to protect small and medium-sized investors.
I think this is very straightforward and does not require any interpretation. To put it simply, fiscal and monetary policies must be implemented simultaneously, the government must increase investment, and make every effort to boost the economy and reverse the economic downturn.
In other words, the top layer is enlarged!
The two largest destinations for funds are the real estate market and the stock market.
The statements made at today's meeting indicate that the policy bottom for the real estate market has begun to emerge. If you still remember the meeting in July last year, you should know that the market bottom for the real estate market is still far away.
The real estate market is indeed in danger, and the decline in real estate sales has continued to expand recently. In the first 20 days of September, real estate transactions in 67 cities fell by 40% year-on-year; in August, transactions fell by 28.8% year-on-year; in July, transactions fell by 24% year-on-year; in June, transactions fell by 20% year-on-year.
Next, looking at the stock market, the idea of "boosting the capital market" was proposed again after July last year, and this time the word "effort" was added; guiding medium- and long-term funds into the market was an old idea mentioned again, but the word "vigorously" was also added, and the methods and approaches were emphasized, that is, to clear the bottlenecks for funds to enter the market.
It is also necessary to support the restructuring of listed companies and study measures to protect small and medium-sized investors.
The key point is, comrades, these are not just empty talk, they are real declarations to invest money in the economy and to actually let funds flow into the stock market. They are a world apart from the previous slogans!
Whether the money can stimulate the economy is another matter, but the stock market will definitely be boosted. There is no other reason. The stock market movement in the short term is determined by funds. If funds come in to buy, how can it not rise?
