New urbanization drives the development of construction machinery

Since March 2011, China's construction machinery industry has entered a period of low growth, and market demand has dropped substantially. Therefore, excess capacity and inventory surges have become major problems for all construction machinery companies. Industry professionals have been looking forward to the industry’s warming, and since the Third Plenary Session of the 18th session of the beginning of this year, a series of heavy news and economic policies such as the acceleration of urbanization construction have been introduced, allowing people in the industry to see the dawn of hope.

At the meeting of the Politburo of the Central Committee, state leaders had proposed to take the road of new urbanization, introduced the implementation of the new national urbanization plan, implemented and improved regional development plans and policies, and enhanced the development capabilities of underdeveloped regions. The National Urbanization Program was discussed at the Central Urbanization Working Conference held in Beijing from December 12th to 13th. The meeting mainly proposed the promotion of the citizenization of the agricultural transfer population, the improvement of the utilization efficiency of urban construction land, and the establishment of multiple sustainable financial guarantees. There are six major tasks, including mechanisms, optimizing the layout and form of urbanization, raising the level of urban construction, and strengthening the management of urbanization.

Urbanization has always been the focus of our people's attention. Various industries have given great hopes for urbanization. We hope that the upsurge of urbanization can stimulate the overall development of China's economy and thus promote the development of various industries. As we all know, urbanization will bring tremendous opportunities for China's economic development, but this new type of urbanization is very different from the previous emphasis on urbanization.

The concept of upgrading the new urbanization construction of the central urbanization work conference put forward to optimize the layout and form of urbanization, improve the level of urban construction, and strengthen the management of urbanization. At the same time, it is proposed that the new type of urbanization is very different from the concept of urbanization advocated in the past.

According to Guan Qingyou, deputy dean of the Minsheng Securities Research Institute and chief macro researcher, in the past, when we talked about urbanization, everyone thought about building a house and building a bridge. This time, stressing that urbanization is a natural historical process, it actually denied man-made cities and demolished buildings. Big build ideas.

Yi Peng, director of the Center for Urbanization Research at the International Finance Forum, believes that, unlike old urbanization, which emphasizes the construction of hardware facilities, the new type of urbanization emphasizes software construction and adopts both hard and soft measures. In addition, he also stated that the clear direction of the development of China’s new urbanization will enhance the overall quality of China’s urbanization in the future. He summed up four "benefits": First, it is conducive to expanding the domestic demand of China's economy; Second, it is conducive to the construction of China's ecological civilization; Third, it is conducive to promoting social fairness and justice. Fourth, it is conducive to the further upgrading of China's industry. I think that new urbanization is an important grip for China’s economy in the future, which will help create an “upgraded version” of the Chinese economy.

In the next three years, the demand for capital for investment and financing of urbanization in China will reach 25 trillion yuan, and accelerating the urbanization needs a lot of funds. According to the estimation of the National Development Bank, the capital demand for investment and financing of urbanization in China will reach 25 trillion yuan in the next three years.

However, we must note that the government’s financial resources are limited and it is impossible to come up with so much money at once. Therefore, where the funds for the new type of urbanization construction come from, it becomes an urgent problem.

Yi Peng, director of the Center for Urbanization Research at the International Finance Forum, believes that the establishment of a multi-element sustainable fund guarantee mechanism is one of the focuses of this meeting on urbanization. In the past, funds for urbanization basically depended on government expenditures, and local debt was generally used for urban construction. This kind of government investment is sometimes blind, so there will be "empty city" and "ghost town". Emphasis on diversity, more refers to the introduction of social funds. The advantages of social funds are responsible for the sustainability of society. He believes that in the future, the government may only invest in some infrastructure, and more will introduce market funds.

"At present, a large number of private funds cannot find investment channels. As long as the government can provide fair competition opportunities and create a good market environment, it will certainly be able to play the role of fiscal funds in all directions and to promote the urbanization of all levels of society." State Council Development Zhang Liqun, a researcher in the Macroeconomic Department of the research center, said.

Yi Peng also stated that in the future, qualified local governments may issue municipal bonds. In the past, the local government bonds were implicit, while the issuance and construction bonds placed the local debt under the open sun, which was equivalent to “blocking the back door and opening the front door. ".

In addition, Yi Peng believes that it is necessary to cultivate tax sources for local governments. He pointed out that the meeting called for improving the efficiency of the use of land for urban construction and that in order to improve the urbanization of land, more stringent land management policies should be adopted to control land use indicators. For local governments that currently rely on land finance, they must give it to the government. To find a sustainable tax source, the property tax is a good source of taxation.

He also pointed out that funds for sustainable development require the balance of power and financial power of local governments. This means that local governments need to spend less and have more income.

Promoting infrastructure construction and increasing the number of project construction projects will increase the demand for construction machinery and equipment. Whether it is the construction of affordable housing or the construction of transportation in the process of urbanization, as well as the mechanization of agriculture, it can bring mechanical action to mechanical manufacturers. With the promotion of new urbanization, the construction machinery industry will usher in the spring.