Dr. Chen Hongtian attends CPPCC meeting to offer advices on building up Shenzhen's real economy

2017.07.28

On July 26, 2017, CPPCC member, Justice of the Peace of Hong Kong, President of Cheung Kei Group Dr. Chen Hongtian attended the sixth session of the twelfth meeting of the Shenzhen Standing Committee of the CPPCC and participated in the thematic consultation of "building up real economy", and made the speech themed "a structural reform at the supply side driven by financial reform" to help to strengthen Shenzhen's entity economy. Deputy Secretary of Shenzhen Municipal Committee of the CPC and acting mayor Chen Rugui made a report on the economic and social development of Shenzhen in the first half of the year. The meeting is presided over by Dai Beifang, Chairman of CPPCC Shenzhen committee, and Li Hua'nan, Deputy Secretary of Shenzhen Municipal Committee of the CPC and Secretary of Politics and Law Committee, attended the meeting.

Chairman Dr. Chen Hongtian makes a speech

The collective proposal named Suggestions on Structural Reform at the Supply Side to Build Up the Real Economy of Shenzhen made at the beginning of this year is identified as the key proposal for the supervision of the party secretary in 2017. Since February, the CPPCC Economic Committee led 268 members to carry out research. At the meeting, the research team put forward a total of 50 suggestions in eight aspects to build up the real economy of Shenzhen.

Chairman Dr. Chen Hongtian and other nine CPPCC members made keynote speeches. Chairman Dr. Chen Hongtian said that enterprises cannot be developed without the support of funds and the difficulty of financing and high interest rate have always been difficult problems for the development of enterprises. Deferred repayment led to a downgrade of loan risk and a downgrade of loan risk led to higher interest rates when enterprises are seeking for financial support from banks and it becomes even difficult for them to borrow money from banks. A credit, pragmatic and developing enterprises will not choose to leave a "bad record" in their "archives", then the enterprise can only make a loan in the original bank or another bank again to pay off the original loan, which is called "borrowing new for the old". Only when enterprises return the original loans, banks can issue new loans. At this time, the enterprise can only go to seek some external short-term funds, that is, "bridge funds", and the cost is very high. A media in Shenzhen once reported that, in order to pay off the RMB70 million old loan, a company gets new loan from a “bonding company” and the cost is over RMB8 million. When it comes to transfer of acquired equity, the property registration center requires that the original owner of the equity can only transfer the equity after he or she pays off bank loans or other loans if the owner has loans to be paid. This will make the transaction cost greatly increased for the new investors or the original equity holders and caused great inconvenience.

The meeting

He suggested that the transfer of ownership and creditor's rights between enterprises or between enterprises and banks should be signed by the two parties through law firms or notary organs with legal effect, and it would take effect immediately. The ownership of the transferred object and the bank loan (debt) of the original object can be transferred at the same time when both parties signed it at law firms or notary organs. After the ownership of the object is transferred, it should be registered at the government departments. The registration process can be completed through the networkfiling. At present, the relevant departments requires the registration of property transfer to be completed in three to seven days, which is why enterprises need new loans to pay off the old loans.

Chairman Dr. Chen Hongtian said that if government can adopt this kind of registration of property ownership transfer, it will be a policy support for enterprises when they make transactions of equity, real estate and housing, and for countless problems of “new loan to pay the old loan” which troubles enterprises and banks. We believe that through the simplification of approval and loan procedures, the investment environment in Shenzhen willbe vigorously improved and Shenzhen's comprehensive strength will be further enhanced.

He also suggested after major projects of business investment or an important business are approved by the government, the latter will issue minutes of meeting in three to seven working days, so as to implement the outcome of the deliberations and to reassure enterprises as soon as possible.  

Deputy Secretary Chen Rugui

At the meeting, Deputy Secretary Chen Rugui introduced the economic and social operation, urban construction management, improvements on people's livelihood and the current concerns of Shenzhen in the first half of the year, and communicated with CPPCC members on issues such as planning on the bayarea of Guangdong, Hong Kong and Macau,  talent introduction, urban business environment, urban governance and major construction projects. He said that the government's work cannot be separated from the concern and support of the CPPCC members, and he hoped that members of the Council to offer valuable suggestions on the work of the government and on the development of economy and society to make Shenzhen a better place that the citizens love it more.  

Chairman Dai Beifang

Chairman Dai Beifang said that the special symposium undergoes solid and thorough investigation. The Committee members who have in-depth understanding of the industry and regional situation, put forward practical questions and offered feasible suggestions to make the symposium met the expectations and their work is recognized by the city leaders.

Deputy Secretary Li Huanan

Deputy Secretary Li Huanan said, the committee members put forward a lot of valuable and important suggestions around the theme to build up real economy. He hoped that the relevant departments of the government would adopt these suggestions according to their work to promote the development and growth of Shenzhen's real economy.