Member of the National Committee of the Chinese People's Political Consultative Conference and Researcher at the Institute of Economics, Chinese Academy of Social Sciences, Huang Qunhui: Establish a multi-level financing system with a fault-tolerant mechanism

Securities Times Two Sessions Reporting Team

This year’s government work report emphasizes “developing new quality productivity according to local conditions.” Huang Qunhui, a member of the National Committee of the Chinese People’s Political Consultative Conference and researcher at the Institute of Economics, Chinese Academy of Social Sciences, told Securities Times that developing new quality productivity requires strengthening the innovative role of enterprises, cultivating a healthy ecosystem for collaborative innovation among “elephants,” “unicorns,” and “gazelles,” relying on government-guided funds to leverage market-oriented patient capital, venture capital, and innovation capital, and establishing a multi-level financing system with a fault-tolerant mechanism.

Huang Qunhui pointed out that in 2024, the added value of new industries, new formats, and new business models in China will account for 18% of GDP. Some fields have already achieved internationally leading R&D and manufacturing capabilities, but key core technologies in integrated circuits, industrial mother machines, high-end instruments, basic software, advanced materials, and biological manufacturing still require breakthroughs. Continuous and stable support for basic research should be increased, significantly raising the proportion of basic research funding within total R&D expenditure, further increasing the share of national fiscal education funding in GDP, especially encouraging enterprises to increase investment in basic R&D, promoting deep integration of innovation chains, industrial chains, capital chains, and talent chains, and improving the support system for comprehensive innovation.

"建议科学把握不同类型企业的创新定位，引导各类企业协同推进新质生产力发展，鼓励中央企业更加专注行业共性技术基础研发，做好科技金融这篇大文章，依托政府引导基金撬动市场化耐心资本、风险资本、创新资本，形成多层次具备容错机制的融资体系。” Huang Qunhui believes that support should be given both to cultivating a sufficient number of “gazelles” and “unicorns,” fully leveraging their market vitality, and to supporting large “elephant” enterprises in seeking “new growth curves,” playing a stabilizing role in the economy, ultimately creating a prosperous scene of “value co-creation” among various enterprises.

The government work report focuses on “accelerating the cultivation and expansion of new drivers.” Huang Qunhui said this includes optimizing and upgrading traditional industries, cultivating and expanding emerging and future industries, expanding capacity and improving quality in the service sector, and creating new forms of intelligent economy. On one hand, traditional industries should be transformed towards digitalization, intelligence, high-end, and integration. Fiscal policies should make good use of guiding funds to support digital transformation of enterprises and traditional manufacturing, and the service industry also needs integrated development. On the other hand, mechanisms for future industry investment growth and risk sharing should be established. Regulations on future industry development in capital markets should be relaxed, creating patient and fault-tolerant capital to support long-term, resilient investment in future industries.

A large part of traditional industries consists of small and medium-sized enterprises. Regarding how to empower SMEs for a splendid transformation, Huang Qunhui suggested: first, leading digital, intelligent, and green technologies through standards to empower SMEs, promoting technological upgrades and transformation, and developing smart manufacturing, green manufacturing, and service-oriented manufacturing; second, deepening reform of the scientific research system and establishing science and technology innovation institutes serving SMEs; third, expanding openness in the service sector to improve the quality of productive services, promoting the extension of productive services towards specialization and high-end value chains based on SME needs, and fostering high-quality, diverse, and convenient development of consumer services; fourth, providing new public infrastructure for SME development, including information and communication networks, a nationwide integrated computing power network, and major scientific infrastructure.

Regarding the economic growth target mentioned in the government work report, Huang Qunhui pointed out that during the 14th Five-Year Plan period, the main goal of economic and social development emphasizes maintaining reasonable growth, and by 2035, achieving basically socialist modernization. Based on calculations, per capita GDP should reach the level of moderately developed countries, with an average growth rate of over 4.3%. Considering that the first year of the 14th Five-Year Plan involves structural adjustments, risk prevention, and reform promotion, some flexibility is needed, so the expected growth rate is around 4.5%–5%. This growth target aligns with China’s growth potential, leaving room and policy flexibility to address various uncertainties, and guiding efforts toward high-quality development and the transformation of the economic structure towards higher quality and better efficiency. Due to significant regional disparities, some major economic provinces need to take the lead to achieve better results.

(Edited by: Wen Jing)

Keywords: