The Survival Environment Of China'S Private Enterprises Is Worrying; &Nbsp; &Nbsp; Large Scale Bankruptcy Will Not Happen.

* the government should establish a support mechanism for small and micro enterprises.

* we should consider financial subsidies and vigorously develop guarantee institutions.

Although the survival environment of China's private enterprises is worrying, Liu Ying Qiu, director of the center for private economy research of the Chinese Academy of Social Sciences, believes that the private economy is still in its development stage.

In an exclusive interview with Liu Yingqiu on Monday, he suggested that the government should increase the development of microfinance, through financial subsidies, vigorously develop guarantee institutions, and take comprehensive measures to promote the implementation of "36" of private enterprises. Moreover, the austerity policy should also be adjusted, and the reserve requirement rate should not be increased.

"I don't think this year's private enterprises will go bankrupt, but their development is indeed facing many difficulties," Liu Yingqiu said. Under the tight background, financing difficulties will become a common phenomenon.

He pointed out that at present, efforts should be made to expand microfinance in order to broaden the financing channels. The government can also consider establishing a support mechanism for small and micro enterprises, giving financial subsidies to more dynamic small and micro enterprises with innovation, and providing loans with discount interest to enterprises that meet the direction of industrial development, product technology upgrading and upgrading, and implementation of enterprise restructuring.

In addition, we should focus on the development of guarantee institutions (companies) for small and micro enterprises. In registration and examination and approval, we can encourage small businesses to jointly establish such companies, reduce entry barriers, and provide more convenience for the development of small and micro enterprises. Along this line of thinking, more innovative forms of financing for small and micro enterprises can be considered.

China's introduction of the "new 36 item" to encourage private investment has been more than a year, but it has been slow and the implementation has been discounted, so that private capital still has no "door" to enter. In addition, the cruelty of "three famine, two high and one low" (labor shortage, shortage of money, electricity shortage, high cost, high tax burden and low profit) has made it even more difficult for the private enterprises to be in a stormy day than the financial crisis era.

However, although small and micro enterprises generally have low mortgage capability and low credit level, China's small and micro enterprises have always had financing channels from private and family ties. The more developed areas are the more prominent, "this is a common phenomenon in China.

"Liu Yingqiu said.

He also pointed out that it is possible for some enterprises to go bankrupt for various reasons, but the tide of bankruptcy is not so easy.

* * more attention should be paid to technological innovation and industrial upgrading.

For the private enterprises themselves, the era of China's long term laborers' low work is coming to an end. The low cost era has basically come to an end, and the changes in industrial technology require higher input.

"This requires private enterprises to attach more importance to technological innovation and industrial upgrading," Liu Yingqiu said.

He also pointed out that private enterprises should have a choice in the industry entry. "It is not necessary to enter the industry, nor is it the industry where the rate of return is high. It is necessary to consider whether there is any capability or necessity in the light of the actual situation of the enterprise.

"

He also said that the role of the government is great in breaking the monopoly of state-owned enterprises. Therefore, we must follow the objective laws and continue to deepen the reform of the system.

In addition, the Central Bank of China has raised the deposit reserve rate for the 11 time since last year. The first five months of this year rose by 0.5 percentage points a month. At present, the deposit reserve ratio of large financial institutions has reached a record high of 21%, and the interest rate of private lending has also risen.

Liu Yingqiu believes that tightening policies need to be adjusted, and at least, the legal reserve requirement should not be raised again.

"I do not agree with this. I do not think that (raising the required reserve ratio) has many benefits to the economic operation." Liu Ying Qiu said that this action could not restrain inflation, but would lead to various enterprises' financing tensions, and the interest cost increase would lead to the reduction of financial operation efficiency.