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Four trillion yuan investment to boost the tap industry
  • Date:2019-07-02
  • Read:370
At the end of last year, the financial crisis swept across the world, domestic consumption was insufficient, and China's economy was in a difficult position of internal and external worries. The central government launched a 4 trillion yuan plan to stimulate domestic demand and stimulate economic development. Many scholars believe that such an operation can not really stimulate consumer consumption, but purely stimulate GDP growth. If we want to solve the problem from the root, we should start from the perspective of consumers, make the income and price of consumers balanced, make the economy develop healthily, and enhance consumer confidence.

During the two sessions, how to stimulate China's economic growth is certainly one of the important topics discussed at the two sessions. The NDRC has made structural adjustment on the direction of 4 trillion yuan investment and held a press conference to explain in detail to the public. In terms of livelihood projects, mainly affordable housing, the total investment will reach about 400 billion yuan. In the last published data, about 280 billion yuan was invested in "affordable housing projects". The investment in the construction of affordable housing increased by 12 million yuan, which is undoubtedly good news for the tap industry.

Otherwise, investment in infrastructure fell from 180 billion to 150 billion, investment in energy conservation and emission reduction from 350 billion to 210 billion, investment in social undertakings from 40 billion to 150 billion, investment in structural adjustment from 370 billion to 160 billion, and investment in rural livelihood projects from 370 billion to 1 trillion in post-disaster reconstruction in Sichuan remained unchanged. The overall direction of adjustment is more focused on solving the problems of national economy and people's livelihood. The two livelihood projects are in the first place. This adjustment will significantly increase the stimulating effect of investment plans on economic development. Only when the basic problems have been solved for the people, can they be assured of consumption.

In this adjustment, the investment in affordable housing increased from 280 billion to 400 billion yuan, an increase of nearly one-half. The increase in demand for water faucets directly affects the water faucet industry. From another point of view, the state has shifted its focus to affordable housing for people's livelihood projects. In fact, the investment plans of affordable housing and real estate revitalization are two national investment plans. There are contradictions in planning. The state should take the interests of the people. In the final analysis, real estate developers are businessmen, aiming at making profits. They also consider the national economy and people's livelihood. They will only put their own interests in the first place. After the real estate industry has become the top ten revitalized industries, the flames of high housing prices have been strengthened by the real estate developers. The adjustment of the national investment plan of 4 trillion yuan has shown that it is more focused on the construction of affordable housing. It is impossible for the real estate developers to maintain high housing prices after the completion of a large number of affordable housing construction, which means that housing prices will return earlier. Rationally, the real estate industry will be on the right track earlier. As the leading industry in the downstream of the real estate industry, the industry will also meet a stable demand.

After years of rapid development in the real estate industry, the overall housing price is too high, which has seriously exceeded the level of Chinese consumption. The current situation has broken the limit of people's consumption. This is also a problem that the real estate industry must face, because the real estate industry is not a monopoly industry, but an industry controlled by the market economy. Although the government will support the local economic pillar industries, but ultimately the consumer to pay, consumers do not pay, the government can not save the real estate industry. The embarrassment of the real estate industry in the past six months is that the real estate business is strong and high prices, consumers do not have enough consuming power, a very small number of people who have purchase needs also see the beginning of a rational return of housing prices, and began to hold money, resulting in a sharp decline in sales of the real estate industry, as the downstream faucet industry facing such a situation. Potential is unable to return to heaven.

Consumers hope that housing prices will fall, real estate business hope is the key moment, the government will rescue the market, as expected, many local governments have issued policies to rescue the market, but the real estate industry is ultimately controlled by the market economy, controlled by supply and demand, although people have the need to buy houses, but there is no purchasing power, does not constitute. Demand, therefore, the real estate industry is now seriously oversupply of demand, the government can only relieve the urgent need to rescue the market, and ultimately rely on the rational return of the real estate industry to develop. Not long ago, the real estate industry was identified as the top ten revitalizing industries. The government wants to revitalize the real estate industry, but how to revitalize the current situation? Investing in Realtors? Be on the cards! But this can not solve the fundamental problem of real estate development, can only prolong the current state of deadlock for a period of time.

The big guys in the real estate industry should also see clearly the current situation and start to promote price reduction. The effect of price reduction is really good, which has led to a marked increase in sales in many areas. As a result, there has been a "real estate market warming up", which has been rushing upward for so many years and just turned around and warmed up. I don't know if someone is deliberately hyping or IQ. There are problems. In a sense, the stock market and the real estate market have something in common, that is, the law of rising and falling. Once the decline begins, it will be irremediable. Finally, a few enterprises with strong competitiveness will rebound. This rebound can only be called "warming up". The rebound of real estate will inevitably bring the leading line. The revival of industry and other upstream and downstream industries is a cascading reaction. This is a problem that is only analyzed within the scope of China. The current global economic crisis has made the Chinese market more complicated and confusing. But there is also a reasonable saying that there is no financial crisis in China at all. The author agrees that the financial crisis took place in the western capitalist countries. Although there was no financial crisis in China, the crisis in the western countries severely restricted China's foreign trade business, which led to a large number of Chinese growth.
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