"Many leaders of the government and state-owned enterprises hope that I can talk more about it, so that I can help state-owned enterprises solve the situation of continuous losses, which do not lose tens of billions of dollars every year. There are also certain leaders who think that if I can develop the new venture electronics group well, I must understand economics, but in fact, this is not accurate. We don't have many economists in the new entrepreneurship department, and the subsidiary with the most economists is Hang Seng Bank. However, in essence, Hang Seng Bank has not developed very well because of studying the economy and formulating the Hang Seng Index. In fact, after Hang Seng Bank formulated the Hang Seng Index and gained a higher reputation, it encountered a run crisis and was acquired by HSBC. Five years ago, after we acquired HSBC's stake in Hang Seng Bank, Hang Seng has grown rapidly, on the one hand, because the domestic market has opened up to us, so that we can do business in the domestic market. In addition, it is the Internet dividend, we are the first to use Internet technology, and then the world, the first to invent the technology of online banking payment and Internet third-party payment wallet, these technological innovations, so that the scale of Hang Seng has been no less than HSBC. As for the necessity of studying the economy, the bank should study the risk control of the economy and industry, and discover the risks in advance through some clues to avoid loan default losses. Now, based on the Internet and computer technology, we can get more data and identify risks faster than other banks, so in terms of asset quality, we are far better than other banks.

In fact, the development of Hang Seng Bank is not simply a market economy, but a technological dividend and plan. That's right, after the acquisition of Hang Seng, it asked Hang Seng to enter the field of Internet banking, and this directional decision is to make economic plans. In the past, Hang Seng has never done it, and there is no precedent in the world, but it feels that there is a historic opportunity, so it has formulated a strategic development plan, so that Hang Seng must develop in this direction, this formula is familiar or not? It is to formulate an economic plan from top to bottom! Every enterprise under the market economy system, in fact, has a bunch of plans. Therefore, I can even say that the market economy is a market economy of countless small plans, not top-down plans, but a bunch of enterprises as the main body, formulating countless plans, various plans have successes and failures, and in the end, a competitive market has been formed. There are countless plans, and the market competition is the judge.

Many people blindly admire economics, and even some economists, having learned a little bit of market economy theory, point fingers at various economic phenomena all day long, and whenever there is a textbook theory that does not conform to their understanding, they are like a dragon that has been touched against the scales of a chess, and they are furious and constantly make all kinds of criticisms. But in fact, what we need to understand is that economics is based on statistics and summarizing the economic laws of the past, and it cannot cure all diseases, let alone predict the future. Even if you understand that there are four seasons in a year, even if you understand that there are four seasons in a year, it may not be universal, and many regions actually do not have four seasons. The four seasons in Japan, China, and Korea, but in tropical areas like Southeast Asia, there is no winter at all, and the four seasons of the year, what we think is accurate common sense, do not correspond to the actual situation in the local area.

Of course, I am not completely denying economics, in fact, some theories of economics can be applied to reality. But almost any discipline of economics cannot be universally applied. Any economic theory is always ineffective, and you expect it to be effective, but it is possible that the reality does not develop according to the laws of economics, and you say that it is unreasonable, and sometimes, it is particularly accurate. Accurately, just like Schrödinger's cat, when the box has not been opened, the cat is in a state of superposition of dead or not dead, and when the box is completely opened, only then can the cat know whether the cat is dead or not.

But to a certain extent, the market economy still has a certain use, at least, the market economy can find more routes and discover more talents through trial and error in the uncertain future. We need to find some excellent talents and invest in excellent talents, so that we can make the efficiency of resource allocation greater. For example, if the average rate of return on investment of the whole society is 15%, then, if we find excellent talents, it must be that this person can create more than 15% return with certain resources, which may be 25%, 30% or even higher annualized returns. Suppose that this person can achieve an annualized return of 25%, 10 years is 10 times, 20 years is 100 times, and 30 years is 1000 times. As capital, it must be rewarded, and if you want to return, you must not use the perspective of simply exploiting ordinary labor to layout, but through the data in the market, find more efficient people and teams, and invest in these teams.

For example, there is a real estate company in Guangzhou that hires a young man named Xiao Xu, who used to work in a steel company from a grassroots worker to a workshop director, but later, he felt that he could not make money, so he went to the south to find a job. After that, he found a job with a monthly salary of 3,000 yuan, and he was hired by a real estate company, but the boss of the real estate company was more picky, Xiao Xu took a salary of 3,000 yuan, and created a profit of 300 million yuan for his boss in a short period of time, after that, Xiao Xu thought about it, not satisfied with the monthly salary of 3,000 yuan, and planned to discuss with the boss that the annual salary would be increased to 100,000 yuan. However, the boss of this company categorically rejected Xiao Xu's request, and after that, a capable person like Xiao Xu was naturally unwilling to continue to work for the boss who picked the door, and soon came up with the idea of resigning and starting a business.

I heard such a thing last year, and immediately asked people to dig him, invested 10 million to help Xiao Xu set up Evergrande Company, Xinqi Future Holdings took 60% of the equity, Xiao Xu because of his personal ability, I gave him 20% of the equity, and the remaining 20% was used to dig other talents. In half a year, Xiao Xu only took half a year, Evergrande started from the real estate agency sales business, and it only took half a year to complete the sales of 170 million commercial houses and achieve a profit of more than 5 million in half a year.

Of course, through the market economy, many people feel that the market economy is better than the planned economy. In fact, this is not the case, because the company and team system are essentially contrary to the market economy. Within each company and team, the project development plan is formulated by the core personnel, and then the whole team executes the plan.

If the country wants to develop well and the state-owned enterprises want to make profits, in fact, it is not enough to blindly cater to the dogma of the market economy and carry out reforms. Just as Mr. Deng once said, a white cat and a black cat are good cats when they catch mice, whether we are state-owned enterprises or private enterprises, they are mainly bringing benefits, employment, and taxes, and they are good enterprises!

Among the state-owned enterprises, there are also excellent state-owned enterprises and zombie enterprises with garbage and waste. Garbage and waste enterprises, from top to bottom are abolished, may resources, will not earn the benefits of the resources invested, and dealing with garbage enterprises, whether the enterprise is state-owned or private, will eventually make investors lose capital. If an excellent enterprise has an honest and capable management team that can bring benefits to employees and investors, then if it is a state-owned enterprise, the state-controlled shareholding will make a profit, as long as the enterprise can provide shareholders with benefits, it is conducive to the overall situation. Don't squeeze out such enterprises, the so-called - all the water to catch fish, will not get it, and next year there will be no fish.

Therefore, I think that if the state wants to change the behavior of state-owned enterprises, it should not be the idea of poverty alleviation. Instead, we should let the state-owned enterprises that do a good job get rich first, and the team employees of these enterprises should share more returns. You must first let people who can create wealth, be more efficient than others, and are willing to work, first get rich through work. Although the boss of your state-owned enterprise is the state, it always emphasizes contribution and does not let the employees who create wealth get rewarded, which will definitely lose talent and reduce the efficiency of the team.

Many leaders feel that the method of using punishment to break the iron rice bowl and let the state-owned enterprises that do not do well go bankrupt and the workers who are laid off and lose their jobs to carry out the reform make people realize that the market economy is not a dinner party, but a real reform.

But I don't think it's very good.

In fact, carrots should be used to lure. We will strive to transform the enterprise, bring the enterprise back to profitability, and after earning money, the employees can become rich. Don't be miserable or poor.

It is not that we are getting rich by following the crooked path and by illegal means, but that the management of factories and enterprises has become better, that there are orders and businesses, that profits can be made, and that most of the profits can be taken out, and that the workers of the enterprises that create wealth can first become rich, and this is the way to resolve the problem. People can make profits and create wealth, you should let it expand production, create more wealth, let the employees of its enterprises earn more, three or five times more than their peers are reasonable, as long as, after creating wealth, legally pay taxes, and pay a part of the state as a shareholder, should get the return of equity dividends. In the end, the remaining profits should enrich the people who created these wealth.

If you don't let these people who can create wealth now get rich, but take away this wealth and help backward and inefficient enterprises that can't do good jobs and can't pay wages, the final result will be that high-quality enterprises that are trying to create wealth will gradually lose their motivation and even become loss-making enterprises.

Excellent enterprises with good efficiency and expansion of production must need a large number of labor. To recruit qualified people for enterprises that are difficult to operate, or even to stop production, to solve the work problem of people who can work and are willing to work in these enterprises, in fact, it is okay. There are not many people in the company, and shutting down does not affect the overall situation.

In essence, the biggest advantage of the market economy is actually to motivate people who are willing to work by making more money, and allocating resources to teams and projects with these advantages can lead to greater economic growth and employment growth.

Many excellent enterprises and projects actually need financing, and many leaders have encouraged the issuance of treasury bonds and loose monetary policy, in fact, I don't think we should be worried. There are a lot of projects in our country that need to be launched, and they will bring benefits very quickly. The debt ratio of the society as a whole is low, because the debt ratio is relatively low, so many projects have been delayed, so that many jobs, tax revenues, etc., have not been created quickly.

Many leaders are worried that issuing more bonds, loose credit, and investing in the real economy will cause inflation because of money printing, but in fact, it will not. As long as it is converted into production, not only will it not be inflationary, but it will even feel that the supply of goods is insufficient, and the prices of a large number of goods will even fall. Scarcity is expensive, and insufficient productivity is the essential cause of inflation.

In our ancient and Republican periods, hyperinflation often occurred. Essentially, because money is simply printed, but there are still so many goods that can be produced, prices will skyrocket. If the production capacity exceeds the amount of money, the whole society will become richer, and the per capita consumption of more goods will be consumed, rather than the price of goods will rise.

If you print 2 times the money, but the production capacity is increased by more than 2 times, the result is a big increase in productivity, but prices will not go crazy. Inflation occurs only when money is spilled over in excess of what is needed for production and consumption.

Most of the economies that have been inflated are lazy countries, easily relying on natural resources to make money, and they cannot produce much locally, and completely rely on overseas products. This kind of economy, which is not competitive with itself, is a lazy economy, as long as the supply of overseas goods is not smooth, inflation will be high. Our country's route is to make hard-earned money, and a large number of manufacturing industries are constantly producing products and constantly exporting them overseas in order to digest our excess capacity. In the future, we will produce products for consumers all over the world, and our production capacity will continue to expand, and if overseas exports encounter problems, surplus products will only lead to deflation rather than inflation.

The fact before us is that our industrial capacity has been increasing, gradually moving from a shortage of consumer goods to a partial surplus of many products. Therefore, many people in the society have been panicking about inflation, thinking that inflation will be normal, in fact, this is a short-term illusion, and even rising prices, just because, in the past, our commodity pricing was unreasonably low, and gradually returned to normal, so the phenomenon formed in the short term. In the long run, the production capacity of our various products is getting higher and higher, if we can't rely on exporting overseas markets to help us digest the production capacity, we may not be able to digest so many consumer products internally, and we will fall into a large number of domestic consumer goods in a few minutes The price of consumer goods is falling wildly, and the vicious dumping below the cost price will immediately become deflation.

So, basically today I want to say yes, development is the last word.

To solve the problem of state-owned enterprises losing money all day long, we should start by encouraging high-quality state-owned enterprises, so that the employees of state-owned enterprises with advantages can make money, and those that meet the qualifications can be listed. Depending on the operating conditions, the bank gives more loans. Bank loans, instead of lending to enterprises that cannot afford to pay wages and do not produce at all, should lend to enterprises whose products are in short supply and need to expand production and create more benefits......

Economic development is not about poverty alleviation or average-raising, but it is about respecting the laws of the economy and allowing enterprises that can make money to continue to make more money. If the overall economic development is good and the overall wealth can be created, the government will have more resources to help some disadvantaged enterprises and groups. However, it is necessary to ensure that enterprises with high efficiency can develop first. ”

Lin Qi's speech in Beijing was not published in full in the media. However, the "People's Daily" selected a part of the content and published it in the media, for example, to encourage the development of state-owned enterprises with good efficiency and profitability to develop better, and the employees of state-owned enterprises who can make money to get more. This method is still considered feasible by many leaders of the country.

In the 90s, after the implementation of the market economy, the domestic state-owned enterprises have been in a state of long-term loss. Until the Asian financial crisis in 98, a large number of domestic enterprises went bankrupt. After getting rid of a large number of burdens, and a bunch of state-owned enterprises obtained a bunch of financing such as listing, loans, and bond issuance, a large number of outstanding state-owned enterprises began to get on the right track, and after that, the profits of state-owned enterprises were higher year by year, and they continued to achieve larger-scale profits.

Later, the state-owned enterprises were able to develop well, to a greater extent, because the domestic financial leverage gradually increased. After the increase in leverage, inflation was much lower than in the 80s and 90s, because there was an overall surplus of production. The high inflation rate in the 80s and 90s was not mainly caused by the indiscriminate issuance of money, but by the lack of productivity and the shortage of goods in supply. Buying everything by grabbing, and empty store shelves, is the root cause of long-term inflation.

There will never be a shopping mall with full shelves in supermarkets, merchants are worried about how to sell goods, constantly advertising and promotion, and an economy that pays more and more attention to marketing will be inflationary. In this kind of economy, the business is fighting to the death, just to have a little more market share and sell a little more things, and it is particularly difficult to sell things. Money and consumers are far more scarce than goods. If this trend continues, it must be deflation, not inflation!

Why did Japan continue to deflation in later generations? This is because the share of Japanese products in the world's sales has declined, and Japan is a big manufacturing country, so the external export of products is not smooth, and there is a far surplus internally, so prices will naturally continue to fall, leading to continuous deflation.

The backyard of the United States, the South American countries, is basically inflationary. Because, while South American countries are rich in resources, they basically lack manufacturing. Relying only on export resources in exchange for various consumer goods, and the foreign exchange in exchange for export resources is far from being able to meet the foreign exchange required for imported goods, and in the end, South American countries are borrowing foreign debt to import goods. After the debt ratio became higher and higher, there was a gap in foreign exchange, imported cloth goods, shopping mall shelves were empty, and the currency naturally depreciated wildly. Essentially, inflation in South America is caused by the inability of goods to be produced independently, the total dependence on imports, and material scarcity. On the one hand, it is rich in natural resources, but on the other hand, it is relatively lazy and unwilling to develop industry, resulting in a lack of materials. Scarcity is expensive, and inflation in South American economies has naturally not been solved.