Yao Yudong: China has four advantages in incubating "tech cows"

　　Chinanews.com, Nov. 26, title: Yao Yudong: China has four advantages in incubating "tech cows"

　　China-Singapore Finance and Economics reporter Xia Bin

　　Yao Yudong, deputy general manager and chief economist of Dacheng Fund and former director of the Financial Research Institute of the People's Bank of China, delivered a speech on the 26th when he participated in the "2022 Snowball Carnival" and said that the Chinese economy has reached a critical moment in need of transformation. The main force of transformation is the real economy, industry and technology.

"Technology Bull" will become one of the key words in 2023. China has four advantages in incubating "Technology Bull".

　　Yao Yudong believes that China's economy will move towards a moderately developed country or a higher level in the future, and it is necessary to promote the development of the real economy and promote the further upgrading of the industrial chain.

Industrial upgrading needs to be considered from a global perspective to clarify China's position in the global industrial chain.

　　Statistics show that Europe and the United States have the largest profit margins in the "smile curve", and Europe and the United States also account for the largest proportion of technology in the marketing side. Japan and South Korea occupy part of the market, and China is roughly in the middle, while developing countries such as India and Vietnam are accelerating. Catch up with China.

　　"There are pacesetters in the front and pursuers in the future. It is far from enough to stay at the current position. Our country must stand on the commanding heights of the global industry." Yao Yudong said that China's investment in innovation and research and development has continued to grow over the years, and it has now accounted for About 2% of GDP, but compared with about 3% in the United States and Japan, there is still a considerable gap.

　　Yao Yudong pointed out that a reasonable growth rate under a prudent monetary policy can provide blood for the real economy.

Thanks to the integrity of the national banking system and the relatively smooth overall transmission mechanism of monetary policy, the overall growth rate of China's currency is relatively good.

"Technological cattle" have water, but the water will not be flooded with floods, nor is it a trickle of streams, but "flooded with middle water".

　　He also mentioned that China has a vast ecosystem of market entities, including self-employed individuals, small and micro enterprises, medium-sized enterprises, regulated industries, NEEQ companies, listed companies, and many innovative companies.

In the future, as the market value grows and the heads become more and more concentrated, there will be an exponential distribution, and the comprehensive registration system will open up channels for it.

　　In Yao Yudong's view, after the full registration system, more and more companies will go public, which shows that the capital market helps the economic development to adjust the structure.

　　Yao Yudong is full of confidence in China's incubation of "tech cows". He described China's advantages from four dimensions.

First, "specialization, special innovation" is the confidence of "tech bulls".

In the CSI 1000, there are 180 "specialized, special and new" companies, 80 in the CSI 500, 40 in the Shanghai and Shenzhen 300, and the amount of "specialized, special and new" companies in the ChiNext is also relatively large.

　　At the same time, China has now formed a "Specialized, Specialized and New" system: there are nearly 1,000 innovative provincial-level "Specialized, Specialized and New", "Specialized, Specialized and New" little giants, individual champions in the manufacturing industry, and there are also leading companies. It is not difficult to see that China has a stepped training system and complete system advantages.

　　Second, China is a super-large-scale economy with a super-large population, magnificent rivers and mountains, a long coastline, and a good ecological circle. It has advantages in terms of geographical environment, ecological environment, and business ecology.

　　Third, the structure of listed companies is gradually improving and optimizing.

The basic level of China's listed companies has generally reached the standard, and some of them are outstanding.

Focusing on corporate governance, operations, ROE (return on equity) and other aspects, the scores of "specialized and special new" are relatively higher because they perform better in terms of governance.

　　Fourth, in the future, new energy will surely form an energy revolution, and China is fully qualified to take the energy "job" into its own hands.

China's unit energy consumption continues to decline, and at the same time, it is also working hard to participate in reforms such as the "Paris Agreement" and "double carbon".

In the future, the investment in hydropower will be at least 600 billion yuan. Hydropower can also store energy, and pumped storage is the most reasonable way to store energy.

China has water, wind, light, and different levels of power generation methods. At the same time, the cost of power generation is continuously falling, and the advantages are obvious.

　　In addition, Yao Yudong pointed out that China is still conducting research on distributed photovoltaics and distributed power generation, namely "new energy sources".

China's new energy investment accounts for 30% of the world, and its absolute advantage is obvious.

In terms of energy conversion, China has hydrogen energy, solar energy, and water energy in the upstream, a series of wind power, photovoltaic, wind power, and a small number of nuclear energy applications, coupled with the overall layout of new energy sources. fertile soil for cattle.

　　Yao Yudong emphasized that in the face of economic transformation, China has to do difficult but correct things.

China has a well-developed capital market, a registration system that is being implemented, a systematic mechanism for cultivating "specialized, special and new", and a broad field of new energy investment. In the future, "tech bulls" are bound to emerge.

(Finish)