The fourth meeting of the leaders of the BRIC countries was held in New Delhi Hu Jintao: to promote the reform of global economic governance Consultation and cooperation to strengthen fiscal and financial sector Increase in emerging markets and developing countries, representation and voice According to AP The fourth meeting of the leaders of the BRIC countries held in New Delhi on the 29th. Chinese President Hu Jintao, Brazilian President Rosoff, Russian President Dmitry Medvedev and Indian Prime Minister Manmohan Singh, South African President Jacob Zuma to attend. At the meeting, Hu Jintao stressed that the world is undergoing great changes and major adjustments. For peace, development and cooperation of the trend of the times have not changed. A number of emerging markets and developing countries seize the opportunity to accelerate the development of solidarity and cooperation, seek development cooperation is increasingly becoming an important force to promote South-South cooperation and North-South cooperation. This will improve the overall productivity level of human society, more balanced world economy, international relations, global governance more effective, more lasting world peace. Hu Jintao delivered a speech entitled “strengthen mutually beneficial cooperation for a better future” speech. Hu pointed out that the BRIC countries are emerging markets and developing countries an important part of the extended family is a positive force for maintaining world peace and promoting common development. At present, the BRIC countries is a new starting point, it should be carried forward and forge ahead, to the next level. Hu Jintao on strengthening the BRIC cooperation put forward four proposals. First, adhere to the common development and promote common prosperity. Adhere to run their own affairs and to maintain the good momentum of economic growth, improve people’s livelihood, which in itself is a significant contribution to world economic recovery and growth. Second, equal consultation, deepening political mutual trust, and take good care of each other’s major interests and concerns, the international community of mutual respect, equal consultation model, always good friends and good partners. Third, the pragmatic cooperation, and lay a solid foundation for cooperation, efforts to play its due role in the cooperation in various fields, strengthen cooperation in economic, social, and public opinion, to strengthen consultation and cooperation of fiscal and financial sector, to build brand items. Fourth, international cooperation, promoting world development, and promote global economic governance reforms, the representative and voice of emerging markets and developing countries to promote South-South cooperation and North-South dialogue and strengthen cooperation in the field of international economic, financial, trade, development communication and coordination, strengthen communication and coordination in the Group of Twenty, the United Nations and other multilateral mechanisms, reflecting the attention and support for multilateralism. Hu stressed that China will firmly grasp the theme of scientific development, unswervingly follow the road of peaceful development and unswervingly pursue a win-win strategy of opening up, to achieve their own development and is committed to promoting common development. China firmly supports the BRIC cooperation, adhere to the vast number of developing countries through thick and thin, together with one heart. After the meeting, the leaders attended the relevant cooperation agreement signing ceremony, and the Federation see reporter. Hu said the development of BRIC countries is an important part of the global common development, the BRIC countries to conform to the trend of the times of peace, development and cooperation, to promote the democratization of international relations. China is ready to work with other members of the BRIC countries to strengthen the partnership to jointly promote the building of lasting peace and common prosperity and harmonious world.
security room is assigned to whom the protection of housing was built before it has become clear is built to which the target group. We have not yet fully established a uniform distribution of the standard. China Economic Times: The protection of housing allocation is what kind of mechanism? Our country should be what draw? Ma Xiulian: the United States, the protection of housing built before it has become clear is built to which the target group. In other words, in different regions of the United States (usually in an urban area), there are different regions of middle-income (AMI), which by the federal census data to determine. The house is built out to the local middle-income 80%, 50%, or less than 30% of the group, it is very clear. Such as the U.S. in the 1960s had a mortgage interest subsidy, to encourage developers to build security room, the target object is less than 80% of the level of middle-income families. At present, the U.S. government is not directly involved in the protection of housing construction, a considerable part of by non-profit organizations to build, but the Government will invest a lot of money to support, such as 50-year no-interest loans or subsidies may provide a lot of money. The other hand, China’s protection of housing, compared with the United States, there are the following deficiencies. First, our security room is assigned to whom, and under construction before is not clear. One important reason is that we have not yet fully established a uniform distribution of standards. In the U.S., its already very mature market economy, the allocation standard of AMI. Our market economy has not fully mature, the current affordable housing and low-cost housing according to income criteria, but the income is not only the distribution of standard. Second, income distribution, then the understanding of residents’ income is the most basic. But we do not like the United States with AMI measurable mechanism, only a very general income number, it is unclear how many people in this under, and rarely take into account regional differences, policy is often “one size fits all”, the other China’s government departments, disposal income and real income of the residents often are very different. Again, the underlying data is missing. Such as a complete and unified family housing information, the local price level, the protection of housing is expected to be much demand, and so these data in our country is almost a blank. The lack of basic data has brought great challenges to our security room. Finally, the lag of the relevant laws. In the U.S., income verification, the distribution of the protection of housing rights and obligations of tenants and landlords, and exit mechanisms, have a clear, detailed legal provisions as a safeguard. The United States from the 1930s, the construction of public housing, there is a housing law. After the introduction of new housing security policies of the Housing Act as supplemented and modified to ensure the implementation of the policy. How to achieve a balance between protection of housing is also room in the “protection” and “housing” , Housing quality should be guaranteed, but also take it as a community, not just the room, the community must have a sound infrastructure. China Economic Times: It has been suggested that under conditions of limited government funding, fitness room, low-rent housing does not have built very good supporting facilities should not be too perfect, do not have to each suite built a few rooms and a few Hall can build a large number of simple low-rent housing, public kitchen, public toilets can be, and should be expanded to benefit from the surface. In this regard, do you think China’s security room in order to strike a balance between “protection” and “room”? Ma Xiulian: I think those who believe that “the protection of housing does not have built very good, facilities are also not too perfect” argument is debatable. First, the protection of housing Housing, Housing quality should be guaranteed, but also take it as a community, not just housing, communities have to have a sound infrastructure. Protection of housing to live are low-income, money that otherwise would not, supporting facilities imperfect, education, medical care, shopping, the inconvenience, live in this place will be very convenient, very easy to run-down. It should be said, the better the quality, the more perfect the supporting facilities, the lower its maintenance costs, and vice versa. The current practice in the United States, the security room is absolutely as good as the real estate and middle class live, it was built in the real estate, absolutely can not tell from the appearance, not as public housing as a disgrace to the identity mark – live of public housing for the poor, live in the real estate is rich. From the experience of the United States, in the “protection”, outside the room, as well as “community”, the three concepts need to be considered together. China’s protection of housing construction, especially in public rental construction has just started, all of a sudden you want to reach that standard in the United States difficult, but it should be moving in this direction. On to build some simple low-rent housing, public kitchen, public toilets can be, thus expanding the benefit side “of the proposal, the original intention was good, but only as a transitional period of the policy. I personally think the best approach is the protection of housing quality should not be less than the average level of society, or should better support facilities necessary to improve, but from the point of view of protection, an area can be smaller. The security room how to build a lot of protection of housing built together, will bring two major problems: First, the enormous pressure on urban transport is to increase the poverty risk of agglomeration. Therefore, the protection of housing should be spread to the construction of mixed construction, but also to build a sound transportation and service facilities. China Economic Times: affordable housing in China is basically built together, this would allow low-income people are too concentrated, the long run bound to be problems of one kind, in this regard, the United States have any good experience to learn from? Ma Xiulian: a lot of protection of housing built together, will bring two outstanding problems: First, the enormous pressure on urban transport. The ideal way is to protect the housing should be spread built so that people can choose the nearest place of work. The second is to increase the risk of poverty concentration. Early American public housing model is to cover a lot of high-rise tower blocks, hundreds of families or even thousands of households put together, not only spectacular but also economic. The results appear excessive concentration of the poor, lack of social resources, social isolation, geographically and psychologically growing phenomenon to the decline of the last community, and even become a slum. Columbia angle in Boston public housing decline is a typical example. The United States and later mixed mode. A flower arrangement style building, such as California, Berkeley, 75 units of public housing scattered in 18 places, of course, management costs will be higher. There is in the commercial district built with security room, so that people of different income groups to live together, at least in space, closer to their distance, and increased the opportunities for mutual borrowing of resources, help to eliminate some social problems. This is our country’s protection of housing construction should be a good reference. From the ideal point of view, the protection of housing should be spread to the construction of mixed construction, but also to build a sound transportation and service facilities. China Economic Times: The protection of housing construction, government enthusiasm, the developer is very low-key, worry about profits, then the security room profit is how to allocate? What are the implications on China? Ma Xiulian: allow developers to participate in the protection of housing construction, the U.S. federal and local level, two different policies. Federal policy is basically to go according to market principles, such as the U.S. In the 1960s and 1970s have been used to subsidize loan interest way to encourage developers to build security room, to the profit margin is 6%. 1980s, mainly rent subsidies, the difference between the government subsidies the market rent and cheap rent, so developers do not lose out. However, local level policy is not the same, many cities in the implementation of inclusive planning law. Such as providing the developer to build 100 units of real estate, of which 20 units (20%) out as a security room. The reason is that the construction of real estate occupied by the limited land resources, increasing the housing supply in the market, crowding out the community of the poor living space. Inclusive planning law is mandatory, it can be induced, such as the government allows developers an appropriate increase in the rate of volume, stamped on the floor height of the basis of the provisions of, in order to provide a security room, own real estate number of basic is not reduced. In short, let the developers involved in the protection of housing construction should be given a reasonable profit. Enterprises to cost accounting, and otherwise will not last long. From compression in the low-income groups living space that is induced or even forced the developers to provide a certain amount of protection of housing, which is very reasonable. I think these two experiences are worth learning.
Wen Jiabao presided a State Council executive meeting, decided to establish a finance comprehensive reform pilot area of Wenzhou City. The meeting identified the 12 key tasks of Wenzhou City, the financial reform: First, standardize the development of private finance; is to accelerate the development of new financial organizations; the development of professional asset managers; study to carry out individual overseas direct investment pilot; five deepen the reform of the local financial institutions; innovation and development for small micro-enterprises and the “three rural” financial products and services, explore the establishment of multi-level financial services system; is to cultivate the development of local capital markets; (8) is to actively develop various types of debt products ; nine to broaden the field of insurance services; ten to strengthen the construction of social credit system; 11 to improve the local financial management system, to prevent the emergence of a regulatory vacuum, and guard against systemic risk and regional risk; 12 the financial reform and risk prevention mechanism. Financial innovation Wenzhou ride on the momentum Of Wenzhou and even national significance are very significant, not only enhance the confidence of SMEs to the future development of Wenzhou, also pointed out the direction for the development of Wenzhou in the entire region with economies in transition. Wenzhou is the direction of the reform of China’s market economy standard, Wenzhou private economic development is good or bad, directly affect the confidence of the private enterprises of other regions in China., Wenzhou SME Development Association president Zhou German reporter interviewed the China Economic Times said. Zhou German pointed out that in recent years, voices on financial reform in Wenzhou last year, Wenzhou business owners funding chain scission at running events, small and medium enterprises face funding dilemma, the principal cause of the financial system is unreasonable, the existing financial system has lagged far behind economic development pace. Zhou German also made a further analysis of the bottleneck of economic development in Wenzhou. He believes that the talent, technology, capital, land and other elements of the development of SMEs essential, but relatively speaking, capital is more important, it is the virtuous circle of blood. Wenzhou’s economy is in a critical period of transition, the need for capital and finance for the important support, financial precisely the Wenzhou economic development of a short-legged. On the one hand, should be plenty of private capital in Wenzhou, on the other hand the business to another financial capital, resulting in Wenzhou economic development dilemma. Zhou German told reporters that this year number of enterprises, but also sad days than last year. “The State Council agreed to Wenzhou set up to finance comprehensive reform pilot area, the news is very exciting, we should take a comprehensive financial reform pilot area Dongfeng to make good use of financial instruments, to further reform the financial system, deregulation of private capital, will gather together a large number of idle funds. full mobilization of the vitality of private capital, so that enterprises will have sufficient capital support in the development of private enterprise out of the woods, and promote industrial restructuring and upgrading to a general increase in confidence. “financial innovation, set up corporate restructuring to enhance the competitiveness of the upgrade and local the bridge, which is a golden opportunity, Wenzhou must take the opportunity to ride on the momentum. Relying on local self-reform and the difficulty in the practical significance of the comprehensive reform pilot area certainly financial, Zhou German on the policy next operation implemented a number of recommendations. He said: the government is both the program-makers, agents of change, the next step should be promptly seize the opportunity, the introduction of more detailed policy measures, especially the implementation details to be specific, there must be operable, such as private lending registration, the applicant must have specific rules and implementation procedures. ” Zhou German also stressed that promoting the economic development of Wenzhou, a comprehensive financial reform pilot area alone is not enough, relying on the government power to promote will not be enough, but also give full play to the strength of the private sector, such as participate in various community organizations, financial institutions innovation of financial products, corporate products and technology upgrading. Financial reform is only a framework, the next step to go, also need to continue to explore. Wenzhou City, the financial reform trial area, Wenzhou, a commercial bank branch president Mr Hu told reporters that the establishment of the reform pilot area certainly a good thing, but the significance of how much is hard to say, in terms of financial reform the existing framework and a principle breakthrough and action does not involve a market-oriented reform of interest rates. In addition, financial reform has a strong liquidity, need to form upper and lower linkage mechanism. The banking sector in particular state-owned banks are vertical management, if the above policy is not loose, relying on a local self-reform is difficult to push forward. Small local banks permission, can not have too much of a breakthrough, the only act in the frame above roads. Borrowing from the civil point of view, according to Hu analysis, developed private capital in Wenzhou, but the operation is not standardized. He believes that the State Council executive meeting, to regulate the development of private financing, the development of norms of private finance management approach, the establishment of private financing for the record management system, establish and improve the private financing and monitoring system. “Legalize private lending, the sun, ordering, has an important role in promoting. Wenzhou is also working to set up private capital management services company, set up private lending to register the service center. But the actual operation of the process may encounter some difficulties, private lenders will not take the initiative to register, because a lot of private lending is quietly, the government can not demonstrate who is in the loan. The person in charge of the firm of Ryan, an assessment of Mr Cheng told reporters, Wenzhou, comprehensive reform pilot area as a financial future, whether it is bank loans, private loans should be more standardized, corporate financing difficulties will alleviate.
He also stressed, give full play the basic role of market allocation of resources to better promote the capital market is sound and rapid development Experimental work on the 27th, according to Xinhua News Agency power CPC Central Committee, Vice Premier Wang Qishan in Beijing investigated the transfer of shares of non-listed companies in Zhongguancun. He stressed that the OTC market is an important part of the multi-level capital market. In accordance with the requirements of the “12th Five-Year Plan and national financial work conference of the general tone, to grasp the” Wenzhongqiujin, conscientiously sum up the experience of the pilot and accelerating the reform of institutional mechanisms and organization of system innovation, and explore the construction of over-the-counter market, efforts to improve the proportion of direct financing, to optimize the financial structure to meet the diversified investment and financing needs and to better serve the real economy. Wang pointed out that the birth of China’s capital market over 20 years, rapid development, change, significant achievements, especially in recent years have launched the GEM stock index futures and margin trading business to promote economic and social development played an important role . But be soberly aware that China’s capital market development is still relatively immature, and mode of development is relatively extensive, the market structure is irrational, the lack of financial innovation, the direct financial development lags behind. At present, China is in industrialization, urbanization, accelerated phase, created a rare opportunity for the capital markets to grow and develop. To focus on changing the way of financial development, and to optimize the financial structure, and give full play to the basic role of market allocation of resources to better promote the capital market is sound and rapid development. Wang stressed that since the pilot transfer of shares of non-listed companies in Zhongguancun, the overall smooth operation. In the pilot process, mainly for the majority of SMEs is particularly innovative, growth-oriented small and medium-sized enterprises, high transparency, low barriers to entry, while adhering to market principles, and give full play to the industry self-regulatory organization, organized by brokerages and other types of market players role has accumulated valuable experience. We should conscientiously sum up the successful experience, continue to improve market supervision, access and exit, and information disclosure of institutional infrastructure, to explore the establishment of a unified national OTC market to create the conditions. Wang stressed, to prevent risks for the healthy development of capital markets is essential. Properly handle the relationship between the government and the market, innovation and regulation, and constantly improve the market rules, a clear regulatory responsibilities, strengthen financial supervision departments and local government coordination to combat illegal and correct irregularities, to hold the risk of systematic regional financial the bottom line. Beijing and relevant departments under the State Council is responsible for the comrades to participate in the inspection.
The afternoon of the 26th Hubei Xinyegang Co., Ltd., general manager of the money just flew to Germany, then get the assistant handed to the European Commission invitation of Chinese enterprises raised a notice of application for review “. File clearly states: The European Commission announced on dispute settlement ruling anti-dumping measures the implementation of the fastener, again to the new measures, to invite aluminum foil, 52 China-related anti-dumping measures enterprise application for review on March 23 was local time.
“This was a very significant victory to prove that we can also use the rules of the World Trade Organization (WTO) to safeguard the legitimate rights and interests. Believe there will be a lot of enterprises to actively respond.” Money just on the phone said “Economic Information Daily” reporters.
Another business people, said in an interview with the Economic Information Daily “reporters, the next step will be a large number of enterprise applications for review, re-determination and to modify its current burden of high tariffs. More importantly, this a major victory for the national level foreign trade litigation, but also to many enterprises suffering from the European Union and other trade sanctions to fight a “booster”, the latter will have more enterprises to take up legal arms onto the international stage, for the European Union and other Chinese enterprises the fair determination of the proceedings, to maintain a fair trading environment.
The large range in the EU a comprehensive review of the anti-dumping case involving Chinese, from China in the WTO last year achieved a favor.
July 15, 2011, the WTO Appellate Body issued a report of China v. the ruling of the anti-dumping case of the EU carbon steel fasteners, and finds that the EU’s “anti-dumping basic regulations section 9 (5) on a separate tax rate” law violates WTO rules. This is the first lawsuit brought by China in the WTO to the EU, the industry’s evaluation said that this favor would force the EU to modify the use of more than ten years of discriminatory trade provisions, we achieved a major victory for institutional.
The official announcement of the European Commission said to the European Commission, in view of the WTO Dispute Settlement Body Central Europe fasteners dispute ruling on the case last year, the EU decided to invited are currently in force, a separate rate calculation method is closely related to anti-dumping measures stakeholders The application for review, review the current measures, and review of the European Commission will be made to withdraw, modify or maintain the measures decided.
Previously, the European Commission was on the 6th review announced anti-dumping measures against the fasteners. In the evening of the 26th, the person in charge of Treaty and Law Department of the Ministry of Commerce has issued a statement, said China is the EU implementation of the WTO dispute settlement, the judgment of the initiatives welcomed. The Chinese side hopes the EU will implement the WTO ruling as soon as possible, and fully to correct the practices of its anti-dumping investigation in violation of WTO rules, to give Chinese companies a fair and equitable treatment, and promote bilateral trade and healthy development of. Commerce Department to support China’s export enterprises to actively participate in the review, and safeguard their legitimate rights and interests, and will pay close attention to the review progress.
Requirements in accordance with the WT O rules, the EU should modify the completion of their relevant laws and by October 8, 2012. CITIC Pacific Special Steel Group International Trade Company general manager Liu literature seems, the law is the most important foundation of the trade litigation, this part of the problem, sufficient to establish the Commission once the ruling of the many companies in China, it is unfair.
“The EU had the wrong practice is reflected in the legislative and operating at two levels. The legislative level, the EU has initiated legislation to modify the program, the draft law to modify the basic shape; the operational level, the comprehensive review can be regarded as amendments to the Prior to the wrong practice.” Allbright Law Firm Partner Fu Donghui, told the Economic Information Daily “reporters.
The CCCME Legal Service Center for Hui-Juan Liu told reporters that the Electrical Association would like to see the actions taken by the EU in the correction of the erroneous practice as industry representatives, and hope the EU can be implemented expeditiously and effectively correct the erroneous practice. She also appealed suffered unfair treatment in the enterprises to actively apply for a review, in order to get a better deal, we had the fruits of victory implement WTO litigation.
Wang Lei, Gao Peng Law Firm, told reporters that the EU this comprehensive review involving China’s anti-dumping cases, involving a very wide scope, is a major positive for many domestic industries and enterprises, the enterprises should seize this opportunity and actively should v. to strive for good results.
Analysis pointed out that the benefit will focus on metals & minerals, steel, chemical and other industries as the EU anti-dumping hardest hit. However, industry sources also said that the EU’s comprehensive review provides the opportunity to apply for a separate rate, but not the same as domestic enterprises can obtain a lower tax rate. For businesses, not the actual benefit, but also depends on the situation of the respondent and the EU review process.
National Gang Huachen law firm Chen Er Yi told reporters that the contents of this announcement from the EU is attempting to correct the erroneous practice, but whether legal practice in the review process more worthy of attention, need to be vigilant review of just going through the motions. In his view, the most reasonable correction practice is directly cancel the anti-dumping measures on Chinese enterprises.
This is President Hu Jintao and his wife Liu Yongqing forward to welcome people waved. Xinhua News Agency reporters Huang Jing and Wen She
SEOUL, March 25 President Hu Jintao on the 25th arrived in Seoul, South Korea, to attend the Seoul Nuclear Safety Summit, held from 26 to 27.
19 am local time, Hu’s special plane arrived in the south of the airport in Seoul. Hu Jintao and his wife Liu Yongqing were warmly welcomed by the High Representative of the South Korean government.
Ling Jihua, Wang Huning and Dai Bingguo and other accompanying officials arrived on the same plane.
Chinese Ambassador to South Korea at the airport.
Seoul Nuclear Security Summit is a follow-up meeting of the Nuclear Safety Summit in Washington in 2010. The summit in order to enhance the security of nuclear materials and nuclear facilities, the theme will be a comprehensive review of the international community the progress made in the field of nuclear safety since the Washington Summit, focusing on national measures and international cooperation to strengthen nuclear safety. More than 50 state leaders and heads of international organizations will attend the meeting.
Hu Jintao delivered an important speech at the meeting, comprehensively expounding China’s policies and proposals in the field of nuclear safety for its efforts and an important measure. During the meeting, Hu Jintao will hold bilateral meetings with leaders of relevant countries.
After attending the Nuclear Security Summit, President Hu Jintao will attend the fourth meeting of the leaders of the BRIC countries held in New Delhi, India, and a state visit to Cambodia.
IMF headquarters in Washington, DC 22, said the organization is seeking to raise capital, to reinforce its “firewall” and to ensure that the global economic and financial stability.
U.S. Treasury Secretary Timothy Geithner has repeatedly said that the IMF plays an important role in the response to the debt crisis in Europe, but the United States had no intention of IMF capital increase to help. The United States is the largest shareholder of the IMF.
IMF spokesman David Hawley, 22, answered a Xinhua reporter’s question at a regular news conference, said that not Geithner and other officials of the position to comment, but the Group of Twenty, held in Mexico City The communique issued by the finance ministers and central bank governors meeting called for the implementation of the share reform the IMF in 2010 as soon as possible to ensure that the IMF has sufficient resources, at the same time, the euro area should also strengthen its own “firewall” construction, speed up economic structural reform.
IMF Managing Director Lagarde and other officials have recently said it expects the next few years, potential financing needs about $ 1 trillion, the IMF needs $ 500 billion capital increase, to enhance the firepower to deal with the debt crisis in Europe, this 5000 billion U.S. dollars, including the European Union has pledged to provide approximately $ 200,000,000,000. In addition, the IMF is seeking other ways to increase funding sources.
22, the U.S. Federal Reserve Board Chairman Ben Bernanke said the U.S. financial and real estate regulation ineffective caused the financial crisis, the regulators in the United States should learn a lesson and to strengthen the relevant regulatory measures.
Day lectures to students at the George Washington University in Washington, DC, Bernanke said before the financial crisis, the loose credit standards and low mortgage down payment ratio, people with weak risk prevention awareness caused by the deterioration of the quality of the U.S. mortgage eventually led to the subprime mortgage crisis and financial crisis, but regulators should bear an important responsibility.
Bernanke pointed out that the financial crisis caused stock prices, housing starts slump, rising unemployment and other serious economic consequences, the current U.S. average house prices compared with early 2006, a decline of more than three. The financial crisis has exposed the vulnerabilities of the U.S. regulatory authorities to ensure the stability of the financial system, to protect the interests of consumers, regulators should learn from it.
Bernanke to give George Washington University students taught in this month four times, the theme is “The Fed and the financial crisis. On the 20th is the first of this series of courses, 22 is the second talk. Bernanke as a Fed governor in 2002, to succeed Greenspan became Fed chairman in February 2006. Prior to this, Bernanke is a professor of economics at Princeton University, “the Great Depression” and other well-known scholars.
22, the U.S. Federal Reserve Board Chairman Ben Bernanke said the U.S. financial and real estate regulation ineffective caused the financial crisis, the regulators in the United States should learn a lesson and to strengthen the relevant regulatory measures. Day lectures to students at the George Washington University in Washington, DC, Bernanke said before the financial crisis, the loose credit standards and low mortgage down payment ratio, people with weak risk prevention awareness caused by the deterioration of the quality of the U.S. mortgage eventually led to the subprime mortgage crisis and financial crisis, but regulators should bear an important responsibility. Bernanke pointed out that the financial crisis caused stock prices, housing starts slump, rising unemployment and other serious economic consequences, the current U.S. average house prices compared with early 2006, a decline of more than three. The financial crisis has exposed the vulnerabilities of the U.S. regulatory authorities to ensure the stability of the financial system, to protect the interests of consumers, regulators should learn from it. Bernanke to give George Washington University students taught in this month four times, the theme is “The Fed and the financial crisis. On the 20th is the first of this series of courses, 22 is the second talk. Bernanke as a Fed governor in 2002, to succeed Greenspan became Fed chairman in February 2006. Prior to this, Bernanke is a professor of economics at Princeton University, “the Great Depression” and other well-known scholars.
The boots finally landing. March 20, the National Social Security Fund Council officially announced the approval of the State Council, the National Social Security Fund Council is entrusted by the Guangdong Provincial Government, the investment and operation of Guangdong Province, the basic old-age insurance for urban workers balance of funds of 100 billion yuan. At this point, the legend in the southern province finally settled.
March 19, the National Social Security Fund Council and the Guangdong Provincial Government and other interested parties was signed in Beijing commissioned by the Investment Agreement, the funds will be in place in batches, commissioned by the tentative two years of the investment period.
Earlier, the President of the Council of the National Social Security Fund, Dai Xianglong, and the Chairman of the China Securities Regulatory Commission Guo said on different occasions, and will actively promote local pension to invest in stocks.
However, on March 21, the National Council for Social Security Fund in its official website issued a statement: some of the media and individuals entrusted investment operations misread as a “trust the market”, understood as in the “stock market”, which is not accurate.
The statement said the NSSF fiduciary investment and operation of Guangdong Province, part of the pension, it will take a more cautious investment policy, the funds will invest primarily in bonds, bank deposits, corporate bonds, financial bonds and other fixed-income products, The principal available not less than the same period in fixed deposits in banks in interest income.
Zhang Gang, an analyst with Southwest Securities (600,369), said in an interview with this reporter shortly after the landing of the “Boots” on the stock market is limited, which in itself in the market expected and unexpected. Moreover, the direction from the investment point of view, more to invest in fixed income products, limited investment in the stock market.
“The so-called low-risk, low income. Guangdong pension entrusted investment operations after all, is the single commission of the local pension management, the pressure is still very large.” Zhang Gang said.
Dacheng Fund Fixed Income Director Chen still believe that the psychological impact of events on the stock market will be greater than the substantive impact of pension into the market in addition to investing in stocks should invest more in fixed income products and low-risk products, pension into the market will drive the bond market development.
The stock market short-term drop in the bucket ”
The impact of the stock market, the view from the Hai Tong Securities (600,837) that signal the end of the move behind the policy of relatively greater significance that directly affect a relatively small
Huijin holdings in October 2011, Premier Wen Jiabao mention the “timely and appropriate pre-tune fine-tuning”, in December, Guo first mention of the pension into the market, to the February 2012 Guo asked the rare blue-chip investment value, and the State Council approval of the social security fund operations in Guangdong one hundred billion pension near the Shanghai Composite Index in 2300.
However, compared to A shares of 18 trillion yuan float market capitalization of 200 billion yuan on turnover scale, one hundred billion yuan in Guangdong pension into the market on the stock market is “a drop in the bucket”.
Previously, the National Social Security Fund over the years the proportion of the stock of assets is an average of 19.22%, calculated on this basis one hundred billion pension into the market in Guangdong and only 19.22 billion yuan of funds, coupled with the Fund is at most 40 billion yuan. Moreover, this new money will be more configuration fixed income products to maintain and increase their value, the proportion of stock assets may be lower.
Wang Ren Ping An Securities chief strategist told this reporter that since the Social Security Fund operates on a fixed income products, the pursuit of absolute returns on the basis of the principal security. The estimated proportion of equity investments may be between 10% -20%.
Wang Ren, partial long-term local pension into the market on the stock market. To date, the total size of the local pensions reach 1.9 trillion yuan, if the follow-up, there have been emulated by the provinces, the proportion of the stock market and long-term capital will be improved significantly.
“At present, more local pension balances, including Guangdong, Jiangsu, Zhejiang and other provinces, the scale surpassed one hundred billion.” Wang Ren said.
From the secondary market performance, the local pension into the market news did not arouse again upside passion of the market. March 21, the Shanghai Composite Index opened higher throughout the day once again lower volatility this week has been the second consecutive day to close out the Yinxian.
Full roll out will take some time
However, despite the 100 billion local pension into the market in Guangdong gate, but there are brokerage researchers still claim my pension also faced with empty accounts and low overall level, large-scale into the market of the local pension is not a short span of time.
In this regard, Chen Shang also believe that the old-age insurance in Guangdong Province balances of funds into the market, will make the market place balances the expected pension market-oriented investment policy space has been opened.
However, for the investment direction of the management of the investment operations of the basic pension, Social Security Council in the disclosure of information is not a clear division of proportion, saying only that “additional funds will be more configuration to the fixed-income products, to ensure the realization of the Fund hedge against inflation value-added “.
Moreover, it seems, the pension funds into the market in full swing requires the introduction of a number of policies and regulations supporting Therefore, before the introduction of relevant policies and regulations, in the near term breakthrough.
Chen Shang said, should actively promote the pension into the bond market. He said that for the greatest risk in terms of the pension investment, pension each year will be eroded by inflation. Pension is relatively clear of the estimated future payment and future expenditure to match the investment should be carried out, more suitable to enter the income is relatively stable and are expected to yield a higher credit bond market. Three years from 2009 to 2011, the credit market is showing explosive growth, and bond investments also entered a new stage, just for future pensions into the market to provide adequate risk-return investment vehicle that matches.
Chen is still the premise, credit debt is a very important feature is the relative interest income is relatively high, so that interest income can become one of the major source of revenue for asset management, bond portfolio in the control of credit risk, increase revenue growth space and stability.
Wang Ren, local pension commissioned to the core of the social security fund management is the yield difference. Over the years, the local management of the pension for the purchase of government bonds and the bank rate of return is too low, is not conducive to the pension increasing the value.
The statistics show that in the past 10 years, the local pension annual yield of roughly 2%, while the social security fund annualized average rate of return of roughly 9.2%. Therefore, increasing the value of the angle, the local pension still would prefer commissioned by the social security fund management.
In comparison, the social security fund investment in a wider range, including bank deposits, bank notes, large negotiable certificates of deposit and other money market products, bonds, stocks, securities investment funds, as well as for risk management, swaps, forwards and other derivative financial instruments.
The data show that from December 2006, the nine pilot provinces and cities of the Social Security Fund entrusted with the management of central financial assistance to personal accounts for funds. As of the end of 2011, a total of entrusted management of personal accounts fund principal 54.362 billion yuan, access to accounting income and risk reserves of 11.431 billion yuan, an average annual investment rate of return of 10.27% over the same period inflation rate of nearly 8 percentage points more than the promise gains rate by 6.8 percentage points.
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