On August 10th, at the conference of "China's Top 100 Listed Companies", Shen Hanyao, President of Walton Institute of Economic Research and Chairman of China's Top 100 Listed Companies Summit Forum, delivered a keynote speech titled "Initiatives and Actions to Reverse China's Economic Downturn".

In Shen Hanyao's opinion, the main reason for the continuous downward trend of China's economy comes from both internal and external aspects. The internal reasons are mainly demand contraction, supply shock and weakening expectations; while the external reasons are mainly the friction between China and the United States and the impact of the new crown epidemic. In the general development pattern of countermeasures, which is dominated by the domestic macro-cycle and mutually reinforced by the domestic and international double-cycle, it is recommended to take eight strategic initiatives to implement "blood transfusion", "blood-forming" and "blood-exchanging" actions on the supply side and demand side, so as to promote the development of China's economy. It is recommended that eight strategic initiatives be taken to implement "blood transfusion", "blood-forming" and "blood-exchange" actions on both the supply and demand sides in order to promote the comprehensive revitalization of the Chinese economy.

The eight initiatives are as follows:

First, the establishment of the Equalization Fund, boosting confidence in the stock market. Shen Hanyao believes that the stock market can give full play to its market mechanism, pooling of idle funds in the community, improve the overall efficiency of resource allocation, the service of the country's economic construction, especially the benign development of the stock market can enhance the supply side of the capital market investment confidence and expectations. And for a long time, China's stock market market has been hovering around 3,000 points, unable to effectively play its due functional role. Therefore, the state should take major initiatives, such as learning from Guan Zhong's policy, through the central bank currency issuance for the stock market blood transfusion, the establishment of a huge scale of no-cost, open-ended, unlimited policy leveling fund, etc., to promote China's stock market market market continues to ladder up, the first from the current 3,000 more points jumped to more than 4,000 points, so that the stock market in the 4,000-6,000 points by the Market mechanism to run freely, two years later and then rise to 5000-7500 points on the range of operation, and so on. This will inject a shot in the arm for China's economy, reversing the current downturn in the capital market and the economy as a whole, and significantly boosting the confidence of the entire population in economic development.

Secondly, issuing consumption coupons to boost consumption. Aiming at the urgent problem that the current domestic consumption downturn seriously affects the development of industrial chain, Shen Hanyao put forward the program that local governments issue industrial chain consumption vouchers to "transfuse blood" to the residents and economic operation from the demand side. The industry chain consumption voucher is a "quasi-currency" consumption voucher issued by local governments to the resident population in the region, which has the function of leading consumption and promoting the circulation of the industry chain. According to the economic level and consumption revitalization needs of the issuing city, a certain number of consumption vouchers will be issued to each resident, who will firstly pay to the merchants in the commercial and service sectors according to the ratio of consumption vouchers to RMB 1:3, and the merchants will then pay to the upstream manufacturers according to this ratio. The vouchers are characterized by a specific industry chain, a specific region and a specific time. The so-called specific industrial chain, i.e., issued at the consumption end and recovered at the production end, flows upward along the industrial chain, thus stimulating the expansion of demand and output growth along the whole industrial chain; the so-called specific region, i.e., it is geographically specific, and can only be used in the region of the city of issuance and the origin of the products purchased by consumers must be in the city of issuance; the so-called specific time, i.e., for a certain period of time, e.g., for three years, it will be uniformly paid out by the local government at the production end to recover it in the form of RMB cash, tax credits and so on. In particular, he pointed out that since the issuance and use of industry chain consumption vouchers will induce the output of the corresponding quantity of commodities at normal prices, it will not trigger the risk of inflation.

Third, the steady development of the two core pillar industries of "housing" and "transportation". Shen Hanyao believes that housing, real estate and transportation are the first and second core pillar industries in China's economic system, its own industry volume is huge, the upstream and downstream industry chain is very long, and many peripheral industries for its service and support, and it occupies a pivotal position in the economic development. In order to stabilize China's economic fundamentals, the state and local governments should support the steady development of the real estate industry in terms of policy and funding, the difficult real estate enterprises, can be organized with state-owned capital, private and foreign capital to promote equity restructuring, to build a benign real estate industry development of "housing without speculation" in a new pattern. In the field of "line" should also be developed steadily. Considering the constraints imposed by urban congestion on the automobile industry, measures such as the introduction of automobiles to the countryside and rail transportation to the city can be vigorously implemented to promote its large-scale benign development.

Fourth, vigorously develop the fourth industry and promote economic transformation and upgrading. Shen Hanyao pointed out that the fourth industry mainly consists of four fields: science and technology R&D, science and technology education, culture and entertainment, and healthcare; among them, science and technology R&D industry is the core, and science and technology education, culture and entertainment, and healthcare are the mainstays of it. Science and innovation R&D is an industry that creates and produces new technologies, products and industries, such as cell phones, Internet, computers, 5G, Internet of Things, and big data, which are its offspring industries. These new industries will promote existing industries to carry out metabolism and promote rapid economic upgrading and development. Science and technology education, culture and entertainment, and healthcare are the brother industries of science and technology R&D, and they are "people-cultivating" industries, such as science and technology education to cultivate people's growth, culture to enhance people's literacy, and healthcare to protect people's health, all of which are products of human beings, and they produce or cultivate higher-quality human beings. The fourth industry is the main direction and field of economic and social transformation and upgrading and high-quality development, and the national and local governments should introduce a series of fiscal and financial policies to support and vigorously develop the fourth industry, and utilize its strong and sustainable "new blood" ability to provide new kinetic energy for economic development.

Fifth, focusing on the development of strategic emerging industries. Shen Hanyao emphasized that today the world is in the fourth industrial revolution - scientific and technological revolution, the global industry is facing the transformation of old and new kinetic energy, the reconstruction of industrial pattern, the new round of scientific and technological revolution and industrial change is accelerating the evolution of the strategic emerging industries to become the core driving force to lead the high-quality development of the national economy and forging the competitive advantage of the global frontier. Reviewing the first three industrial revolutions in the history of mankind, it can be found that in the historical evolution of the whole industrial structure, where the proportion of new industries is high, the degree of economic development will be high, and it will become the center of the world economy. Therefore, the vigorous development of strategic new industries is the top priority for development in the present era, and at present, it is especially necessary to implement a series of major strategic actions such as going up to the sky (aerospace), going down to the sea (marine industry), making cores (integrated circuits) and intelligentization, digitization, new energy, new materials and so on, so as to accelerate the enlargement of the scale of the whole economic system.

Sixth, the implementation of good city action and beautiful countryside construction, two-way promotion of urban and rural cycle. Shen Hanyao pointed out that through the transformation of the old city to realize the economic "blood change" is of great significance to the current urban economic development. Through the re-development and utilization of land, revitalize the land value, adjust the industrial structure and land use structure to solve the problems of traffic congestion, aging municipal facilities, dirty living environment, improve and upgrade the city functions, so that residents can enjoy a good life in the beautiful city. At the same time, we should also realize the two-way cycle between urban and rural areas, and carry out the new "going uphill to the countryside" movement, so that capital, talents, technology and industries can be transferred from the cities to the countryside to promote the comprehensive and coordinated development of "one, two, three and four" industries in the countryside, and to feed the eco-agriculture and improve the rural living environment, so that the urban and rural people's demand for a beautiful homeland can be met. It also feeds ecological agriculture, improves the rural habitat, and turns the urban and rural people's vision of a beautiful home and a better life into reality.

Seventh, promoting coordinated regional development and realizing the great domestic cycle. Shen Hanyao pointed out that the State should carry out a comprehensive layout along the rivers from upstream to downstream in accordance with the four major regions of the eastern, central, western and northeastern parts of the country, as well as the four major watersheds of the Yangtze River Basin, the Yellow River Basin, the Pearl River Basin and the Songliao River Basin, and adopt a variety of incentives and measures to guide the transfer of second- and third-tier industries from coastal areas to central and western China on a large scale to substitute for the transfer of these industries to foreign countries. In this process, institutional reforms should be carried out simultaneously to promote regional coordination and comprehensive development in the ecological, infrastructural, industrial and social aspects of the eastern and western regions by means of a new mechanism of cooperative development based on demutualization and marketization.

Eighth, globally linked development and promotion of the international cycle. Shen Hanyao proposes that China should not only go out with its advantageous production capacity, products and projects, but also bring in primary resources (such as minerals and energy) and advanced resources (such as talents and technologies) from the international community, so as to realize a two-way linkage. At present, it is even more important to take advantage of the strategic opportunity of the international economic downturn in accordance with the strategic deployment of the Belt and Road to go out and build a global land, sea and air transportation network and build an Asia-Europe financial and trade center in its important nodes, such as Urumqi-Khorgos, an Asia-European factory in the Eastern European region, a world grain silo in Russia, Australia and Southeast Asia, a mining base in the African region In addition, we will build an energy base in the Middle East and an international financial center connecting East and West in Singapore, so as to build a community of human destiny in cooperation with the people of other countries.

Finally, Shen Hanyao emphasized that in the implementation of the eight strategic initiatives, the top 100 companies, as the main force, should be the "chain masters" to drive the development of the whole industry chain; the top 100 cities, as the main battlefield, should deepen the reform of city and county systems, strengthen the synergy of action, and realize the integrated and coordinated development of city-led and urban-rural integration. He also suggested in particular that the central government should further simplify and decentralize government affairs, improve the efficiency of project approval, give the status of separate plan to those top 30 top 100 companies and top 100 cities, grant greater project development rights, and implement a filing system for other investment approvals except for those related to national security, environment and ecology, and market monopoly, so as to let the outstanding top 100 cities and top 100 companies give better play to their leader-driven effect and cluster-linkage effect, and lead the The national economy is developing in a comprehensive, coordinated and high-speed manner.