After the fermentation of time and the initiative of all interested parties, the policy is accelerating to be implemented.
In March, the State Council issued the Action Plan for Promoting Large scale Equipment Renewal and Consumer Goods Trade in (hereinafter referred to as the Action Plan). Among all kinds of policy guarantees, "optimizing financial support" is an important part. Subsequently, the financial supervision department made it clear that "we should do a good job in financial support of large-scale equipment renewal and consumer goods trade in"
A "new blueprint", which focuses on large-scale equipment renewal and consumer goods exchange for new, and solidly promotes high-quality economic development, is slowly spreading across the country. It has continued to take shape from the central to the local. The implementation of "renewal" or "renewal" depends, to a certain extent, on the diversified supply and high-quality services provided by the market, which can not be separated from financial support. As the hub of the allocation of resources such as capital, the participation of the capital market is crucial.
In fact, the annual scale of equipment renewal and consumer goods trade in as high as "5 trillion+" is attracting more and more investors' attention. According to incomplete statistics by the reporter of Securities Daily, as of May 17, there were nearly 2000 questions and answers on the investor interaction platform of Shanghai and Shenzhen Stock Exchanges; The special topic of the stock bar has been viewed more than 1.75 million times, and the discussion posts of relevant investors have reached hundreds of pages. As an important member of patient capital, institutional investors also increased their research on relevant listed companies this year. According to the recent research and the latest position data of institutions, patient capital is gathering.
Significant financial support
Promoting large-scale equipment renewal and consumer goods trade in is a major decision made by the Party Central Committee and the State Council with an eye to the overall situation of high-quality development in China, which will strongly promote investment and consumption, both for the present and for the future.
Since the Central Economic Work Conference held at the end of 2023 and the fourth meeting of the Central Financial and Economic Commission held in February 2024 mentioned "large-scale equipment renewal and consumer goods trade in", the topics of "equipment renewal" and "consumer goods trade in" have been repeatedly mentioned in several major conferences, and the relevant work deployment has also accelerated to go deep and solid.
The Action Plan clearly states that "four major actions are to be implemented, namely, equipment renewal, replacement of old consumer goods, recycling, and standard improvement". Among them, the equipment renewal action is to promote the equipment renewal and transformation in the seven fields of industry, agriculture, construction, transportation, education, culture and tourism, and medical care. By 2027, the equipment investment scale in the seven fields will increase by more than 25% compared with 2023. The consumer goods trade in action focuses on durable consumer goods such as automobiles, household appliances and household appliances. Among all kinds of policy guarantees, "optimizing financial support" is an important part.
On April 26, the People's Bank of China, the National Development and Reform Commission, the Ministry of Finance and the State Administration of Financial Supervision and Administration jointly held a meeting to promote the work of large-scale equipment renewal and consumer goods trade in, which mentioned that "we should do a good job in financial support of large-scale equipment renewal and consumer goods trade in."
Financial support is of great significance for "renewal" and "renewal". Taking equipment as an example, according to the statistics of the National Development and Reform Commission, in 2023, China's investment in equipment in key fields such as industry and agriculture will be about 4.9 trillion yuan. With the in-depth promotion of high-quality development, the demand for equipment renewal will continue to expand, and it is preliminarily estimated that it will be a huge market with an annual scale of more than 5 trillion yuan. The Action Plan systematically deploys the equipment update action, which will strongly drive effective investment.
Looking at durable consumer goods, the statistics of the National Development and Reform Commission show that by the end of 2023, the number of civil automobiles in China will reach 336 million, and the number of household appliances in major categories such as refrigerators, washing machines, air conditioners will exceed 3 billion. The upgrading of automobiles and household appliances will also create a market space of trillion yuan. The Action Plan encourages enterprises to carry out trade in activities through policy support and guidance to create new market demand.
"Renewal" and "renewal" are the highlights of this year's economic work. From the central to the local, from the government to enterprises, they are actively planning and participating. All initiatives need to answer a question - "Where does money come from?" Therefore, the responsibility of financial institutions and how to dare to do good deeds are also under the spotlight.
Mingming, the chief economist of CITIC Securities, said to the reporter of Securities Daily: "Financial institutions play a guiding role in this process. They can help enterprises and consumers reduce costs and relieve capital pressure through credit, financial leasing, equity investment and other financial instruments, so as to promote the smooth implementation of policies and enhance market confidence in policies."
Investors are full of expectations
The capital market is obviously the best carrier for equity investment and financing. In fact, investors in the A-share market attach great importance to promoting high-quality development and investment opportunities of listed companies under the large-scale equipment renewal and consumer goods trade in policy.
On the one hand, small and medium-sized investors are full of expectations. On the other hand, as an important member of patient capital, institutional investors have increased their attention and support for "renewal" and "renewal" this year, which can be seen from the recent research trends of institutional investors.
As of May 17, 2135 listed companies had received 7957 institutional surveys in the year, and 27 companies had received more than 20 institutional surveys. Among them, Central Control Technology, Mindray Medical and Lanqi Technology attracted 916, 792 and 728 institutions for research. From the industry of the stocks surveyed, the electronics, household appliances, medicine and biology, computers, mechanical equipment and other industries have been surveyed more frequently. In addition, the types of institutions participating in the survey are diverse, with securities companies, public and private funds, insurance and insurance asset management companies actively participating.
"The impact of the Action Plan on the company's production and operation" and "the company's development plan for the table's policy requirements" are the hot issues that the research institutions ask. For example, some investors asked: "Is the large-scale equipment update policy promoted by the central government conducive to the company's performance improvement?" Another investor asked: "How does the company respond to the policy and seize the opportunity?"
From the "answers" of several relevant listed companies, it can be observed that their revenue has grown steadily, a number of development plans have been formulated, and some companies have "implicitly" expressed their need for financial support.
Mingming believes that patient capital can identify and invest in industries and enterprises that are policy oriented and have long-term growth potential through in-depth research and market research. It can provide a stable source of funds for related industries, promote industrial upgrading and technological innovation, and promote the optimization of corporate governance structure and the improvement of operating efficiency through capital guidance, promote the healthy development of the industry, and accelerate the implementation of the "renewal" and "renewal" policies.
Patience capital helps enterprises grow steadily
The two-way empowerment of industry and capital has become the surging power to promote high-quality economic development.
From the perspective of shareholding, more and more patient capital is accompanying and supporting industrial enterprises that resonate with the "renewal" and "renewal" policies. According to the statistics of Wind Information, as of the end of the first quarter, according to the classification of Shenyi, the institutional holdings of mechanical equipment, electric power equipment, agriculture, forestry, animal husbandry, fishery and construction materials were 121.02 billion shares, 104.177 billion shares, 37.092 billion shares and 30.911 billion shares respectively.
The above patient capital includes value investors represented by social security funds, pension funds and enterprise annuities, "national teams" dominated by CSF and Huijin, and institutional investors such as insurance funds, industrial capital, public and private funds.
Mingming said: "As a market stabilizer and a booster of economic development, patient capital can provide long-term and stable financial support to help enterprises expand production, update equipment, improve the quality of products and services, and adjust the product structure in time with market changes. The long-term investment characteristics of patient capital enable it to maintain stability when the market fluctuates, reduce enterprise financing costs and risks, and help enterprises grow steadily. In addition, the intervention of patient capital can also drive more social capital participation, form a good investment atmosphere, and promote the whole social capital to focus on supporting the national strategy and high-quality economic development. "
Tian Lihui, president of the Financial Development Research Institute of Nankai University, told the Securities Daily that "'renewal' and 'renewal' can drive the transformation and upgrading of related industries. When institutional investors pay more attention to enterprises in related industries, it usually means that they see the long-term growth potential of the industry and stable returns under policy support."
There must be challenges behind the opportunities. Large scale and long-term investment is also testing the management ability of patient capital. In Tian Lihui's opinion, "renewal" and "renewal" involve large amounts of capital, which puts forward higher requirements for the capital strength and risk management ability of institutional investors. On the one hand, patient capital should not only provide a stable source of funds for related enterprises, but also use its professional ability and resource advantages to help enterprises carry out long-term planning and investment. On the other hand, patient capital should provide a stable funding environment for investment projects through professional asset management and risk control.
