August 13, 2019 Source: Shanghai Securities News

Recently, ministries and local governments have made efforts to stabilize manufacturing investment. According to the Shanghai Securities Journal, the National Development and Reform Commission, the Ministry of Industry and Information Technology and other ministries have conducted research on the investment situation of the manufacturing industry and the development of manufacturing clusters. Many relevant policies for manufacturing investment are being brewed.

In addition, since August, local major industrial projects have been invested, and a number of high-end manufacturing and equipment manufacturing projects have started to work. Analysts expect that the growth rate of national manufacturing investment in the second half of the year is expected to stabilize.

Intensive research by ministries and commissions

Stable manufacturing investment has become the key to stable investment in the second half of the year. In the past two months, relevant ministries have intensively investigated manufacturing.

At the end of June, the Industry Development Division of the National Development and Reform Commission sent a staff member to Hubei Province to conduct a special investigation on the manufacturing investment situation, and listened to suggestions from local and enterprises on promoting investment in manufacturing. At the end of July, in order to do a good job in the National People's Congress's key supervision and recommendation, “Cultivate and develop advanced manufacturing clusters”, the Ministry of Industry and Information Technology organized a joint research team to conduct special research in Shandong Province to understand the situation of local cultivation of advanced manufacturing clusters.

"There is a possibility that the country will introduce policies that favor manufacturing investment. Manufacturing investment will become an important tool for the bottom-line economy in the second half of the year. The tone of future policy support for new technology manufacturing will not change, and will even be further strengthened." Gong Fei, chief analyst of Dongxing Securities, told the Shanghai Securities Journal.

The Central Political Bureau meeting held on July 30 mentioned “stable manufacturing investment” and proposed “to guide financial institutions to increase medium and long-term financing for manufacturing and private enterprises”.

A number of analysts also said that stable manufacturing investment needs to increase targeted support. For example, the implementation of the tax reduction and fee reduction policy, from the investment and financing side to give manufacturing investment support.

According to Pan Xiangdong, chief economist of New Era Securities, after 2012, the proportion of investment in manufacturing loans continued to decline. To solve the financing problem of manufacturing, we should continue to strengthen financial supply side reform, promote interest rate marketization, and reduce corporate financing costs. , pushing the real interest rate down. At the same time, "the science and technology board must adhere to the positioning", improve the capital market system, and enhance the ability of the capital market to serve the real economy.

Since the beginning of this year, the state has implemented a larger tax cut, focusing on reducing the tax burden of manufacturing and small and micro enterprises. Since April 1, the manufacturing VAT rate has been reduced from 16% to 13%. In an interview with the Shanghai Stock Exchange, the chief researcher of the Bank of Communications, Tang Jianwei, said that the focus of the active fiscal policy in the second half of the year will still be to reduce the tax burden of the manufacturing industry and other entities.

Local concentrated on a batch of industrial projects

More involved in high-tech manufacturing

Since entering August, local governments have also made efforts to stabilize manufacturing investment, and a number of major industrial projects have been concentrated.

On August 2nd, Xuchang City, Henan Province held the third batch of key projects in 2019. A total of 54 key projects were started, with a total investment of 17 billion yuan. Among them, the number of industrial projects and investment ratio are more than 70%, involving multiple manufacturing projects.

On August 9, Qingdao City, Shandong Province, started to focus on 10 key projects, mainly involving new-generation information technology, new energy and new materials, high-end equipment and other emerging industries, with a total investment of 23.5 billion yuan.

Not long ago, Nantong City, Jiangsu Province held a signing ceremony for the centralized construction of the project. Eight projects including Jiangsu Haili Offshore Wind Turbine Manufacturing Project started, and 21 projects were contracted with a total investment of 12.2 billion yuan. Chengdu, Sichuan Province, the third quarter of major industry The project started intensively, and the total investment of 58 industrial projects mainly in the fields of equipment manufacturing and electronic information exceeded RMB 39.1 billion.

Why do central and local governments value manufacturing investment? According to the National Bureau of Statistics, the growth rate of manufacturing investment in the first half of this year was only 3%. Under the environment of slowing domestic and external demand growth, manufacturing investment is expected to weaken.

Zhu Jianfang, chief economist of CITIC Securities, expects that manufacturing investment will stabilize in the second half of the year, and the growth rate will fluctuate within the range of 3% to 4%.