The state has launched a package of incremental policies! Specifically, there are five aspects

Quick Facts:

• The state has launched a package of incremental policies, including five aspects: strengthening the efficiency of the implementation of macro policies; further expansion of domestic demand; increase the intensity of assistance to enterprises; promote the real estate market to stop falling and stabilize; Efforts should be made to boost the capital market.
• Next year, it is necessary to continue to issue ultra-long-term special treasury bonds, optimize the direction of investment, and strengthen support for the "two-fold" construction. The investment plan of 100 billion yuan in the central budget and the list of "double" construction projects of 100 billion yuan will be issued in advance within this year.
• Raise the standard of student financial assistance and expand the coverage of policies, increase the amount of national student loans for undergraduate and graduate students, and promote the reduction of loan interest rates.
• We will increase the allocation of loans for real estate "white list" projects, and use special bonds to support the revitalization of idle land.
• Standardize law enforcement and regulatory behaviors related to enterprises. Clarify the follow-up arrangements for phased policies in advance.

On October 8, the State Council Information Office held a press conference on the "systematic implementation of a package of incremental policies, solidly promoting the optimization of the upward structure of the economy and the continuous improvement of the development trend".

Zheng Shajie, director of the National Development and Reform Commission, introduced the specific measures to systematically implement the package of incremental policies——

(1) Strengthen the implementation of macro policies to improve efficiency

The first is to intensify the counter-cyclical adjustment of macroeconomic policies.

• Strengthen the overall coordination and system integration of macro policies such as fiscal taxation, monetary and financial, investment and consumption, and income distribution, strengthen the collaborative innovation of policy tools, grasp the timeliness and effectiveness of policy implementation, and amplify the effect of policy combination.
• It is necessary to ensure the necessary financial expenditures, speed up the progress of expenditures, and increase the positive role of economic development; It is necessary to step up support for local governments to carry out debt swaps and resolve debt risks.
• Reducing the reserve requirement ratio, implementing strong interest rate cuts, supporting large state-owned commercial banks to replenish core Tier 1 capital, and creating a better financial environment for investment and financing of business entities and the implementation of macro policies.

The second is to accelerate the implementation of major reform measures. The Third Plenary Session of the 20th Central Committee of the Communist Party of China (CPC) has identified more than 300 key reform measures, and various tasks are being implemented in an orderly manner. We will speed up the introduction of a number of reform measures that are ripe and accessible, and conducive to achieving sustained and healthy economic development, such as:

• Formulate guidelines for the construction of a unified national market
• Released a new version of the negative list for market access
• Establish a mechanism for the growth of future industrial investment
• Improve the system for promoting the deep integration of the real economy and the digital economy
• Issuing opinions on improving the social credit system

At the same time, we will intensify efforts to attract and stabilize investment, further expand independent opening-up, revise and expand the catalogue of industries encouraged for foreign investment, launch a new batch of major foreign-funded projects, and implement a more open transit visa-free policy.

The third is to enhance the consistency of macroeconomic policy orientation. Make good use of the consistency assessment mechanism to improve the consistency and matching of policy objectives, tools, intensity, timing, and rhythm in various fields.

• Before the policy is introduced, it should be fully demonstrated through consistency assessment;
• When implementing or adjusting policies, they should continue to be consistent with the macro policy orientation;
• After the policy is implemented, the policy effect should be reviewed and evaluated in a timely manner, and the implementation should be adjusted or suspended in a timely manner if it is inconsistent with the macro policy orientation throughout the process.

(2) Further expand domestic demand

In terms of consumption, the focus is on combining promoting consumption with benefiting people's livelihood, promoting the income of low- and middle-income groups, and implementing actions to boost consumption. Specifically, there are three points.

• The first is to increase support for specific groups. Before the National Day, a one-time living allowance was issued to people living in extreme poverty, orphans and other people in need. It is necessary to raise the standard of student financial assistance and expand the coverage of policies, increase the amount of national student loans for undergraduate students and graduate students, and promote the reduction of loan interest rates.
• The second is to combine the "two new" to promote the continuous expansion of commodity consumption. Large-scale equipment renewal and trade-in of consumer goods are not only conducive to unleashing demand potential, but also conducive to promoting energy conservation and carbon reduction, and promoting comprehensive green transformation. At present, the implementation rules for the trade-in of consumer goods have been fully promulgated, the funds have been fully issued, and the policies have been fully launched, the retail sales of passenger cars have rebounded sharply, and the sales of household appliances have turned from a decline to an increase. We need to intensify the implementation of relevant policies to promote the continuous increase in commodity consumption.
• The third is to expand the consumption of services such as pension and childcare. These are also the two "old and young" issues that society is now generally concerned about. Support and regulate the development of social forces in the old-age care and childcare industries, pay close attention to improving the system of childbirth support policies, and improve the level of basic childbirth and children's medical public services. It is necessary to cultivate new consumption formats such as digital consumption and green consumption, and enhance the adaptability of the supply side to mid-to-high-end demand.

In terms of investment, the focus will be on expanding effective investment and accelerating the formation of physical workload. Specifically, there are three points.

• The first is to make full use of all kinds of funds this year. At present, the investment of 700 billion yuan in the central budget has been fully distributed, and the 1 trillion yuan ultra-long-term special treasury bonds for the "two-fold" construction (the implementation of major national strategies and security capacity building in key areas) and the "two new" work have all been distributed to the projects and localities, and the project construction and fund allocation are currently being accelerated. Accelerate the issuance and use of local government special bonds, and support the start of project construction.
• The second is to plan ahead and issue a list of some "double" construction projects and investment plans in the central budget next year. After combing, there is a large demand for incremental funds in the fields of continued infrastructure construction, urbanization of agricultural transfer population, high-standard farmland construction, underground pipe network construction, and urban renewal. Next year, it is necessary to continue to issue ultra-long-term special treasury bonds, optimize the direction of investment, and strengthen support for the "two-fold" construction. We will issue a 100 billion yuan central budget investment plan and a 100 billion yuan list of "double" construction projects in advance within this year, and support local governments to speed up the preliminary work and start implementation first. At the same time, an important task related to this is to accelerate the construction of a new type of urbanization that is people-oriented.
• The third is to optimize the implementation of major investment policies. We should pay close attention to studying the appropriate expansion of the field, scale, and proportion of special bonds used as capital, and introduce specific reform measures to reasonably expand the scope of support for local government special bonds as soon as possible. We will further stimulate the enthusiasm of private investment, implement new mechanisms for public-private partnerships, and support the participation of private capital in the construction of new infrastructure and other fields.

(3) Increase the intensity of assistance to enterprises

The first is to standardize the law enforcement and regulatory behavior of enterprises. Further standardize the administrative law enforcement behavior of administrative law enforcement units involved in enterprises, adopt more inclusive and prudential supervision and soft law enforcement methods, and cannot violate laws and regulations in different places and profit-seeking law enforcement, and cannot arbitrarily fine, inspect, and seize arbitrarily. Promptly remind the places where the increase in fines and confiscation income is abnormal, and conduct supervision when necessary. We should speed up the legislative process of the law on the promotion of the private economy and create a good environment for the development of the non-public economy.

The second is to clarify the follow-up arrangements of phased policies in advance. According to the combing, at the end of this year, there will be some tax support, unemployment insurance assistance to stabilize jobs, skill upgrading subsidies and other policies to expire. On the basis of research and evaluation, the relevant departments will speed up the clarification of whether the policy will continue to be implemented, and if so, clarify the period of extension of implementation as soon as possible. Policies conducive to the production, operation and healthy development of enterprises will not stop or decrease.

The third is to strengthen the guarantee of factor allocation. The policy of renewing loans without principal repayment has been extended from small and micro enterprises to medium-sized enterprises in stages, and this policy has been introduced, and more enterprises will enjoy the benefits. Recently, the National Development and Reform Commission (NDRC) and the State Administration of Financial Supervision (SAF) have taken the lead in establishing a coordination mechanism to support the financing of small and micro enterprises, guiding financial institutions to provide financing support in accordance with market-oriented principles, and striving to achieve "full loans". At the same time, a number of eligible major projects will be included in the scope of energy consumption in the 14th Five-Year Plan, and local governments will be encouraged to increase renewable energy consumption through the purchase of green electricity and green certificates.

(4) Promote the real estate market to stop falling and stabilize. Adopt systematic and comprehensive measures to strictly control the increment of commercial housing construction, optimize the stock, improve the quality, increase the loan delivery of "white list" projects, use special bonds and other support to revitalize the stock of idle land, adjust the housing purchase restriction policy, release the demand for rigid and improved housing, accelerate the digestion of the stock of commercial housing, reduce the interest rate of the stock of housing loans, pay close attention to improving land, fiscal and taxation, financial and other policies, and accelerate the construction of a new model of real estate development. Policies such as reducing the interest rate on existing housing loans have been introduced, some cities have completely canceled purchase restrictions, some cities have further narrowed the purchase restriction area, relaxed the purchase restriction conditions, and other policies are also actively planning and actively promoting.

(5) Strive to boost the capital market. The relevant departments will take strong and effective comprehensive measures to vigorously guide medium and long-term funds to enter the market, open up the blocking points of social security, insurance, wealth management and other funds into the market, support the mergers and acquisitions of listed companies, steadily promote the reform of public funds, and study and introduce policies and measures to protect small and medium-sized investors. At present, the introduction of various policies is being accelerated.

In the next step, we will closely track the changes in the situation, evaluate the effect of policy implementation in real time, study new incremental policies in a timely manner, do a good job in policy pre-research reserves, coordinate policy convergence and work convergence this year and next year, and solidly promote economic stability and upward structural improvement and continuous improvement of development momentum.

Source: WeChat public account of the Chinese government website

Editor: Tang Kai

Review: Zhang Xiang