Ge Honglin, Member of the Standing Committee of the Chinese People’s Political Consultative Conference: Preventing Bad Expansion of Capital to Manufacturing Industry

Original title: Ge Honglin, Member of the Standing Committee of the Chinese People’s Political Consultative Conference: Preventing Poor Capital Expansion Into Manufacturing

“Industry-finance integration、interactiveDevelopment is a good thing, but this has beeninvestmentInstitutions are wrong, the starting point for investment is not sharingmanufacturingDevelopment risk, but take advantagecompanyThe need for investment funds, through real debt,Drawer protocolIn the form of a disguised form of industry-finance integration. “

The integration of industry and finance and interactive development is a good thing, but this has been distorted by some financial investment institutions. The starting point of investing is not sharing the risks of manufacturing The shape of stocks, real debts and drawer deals has changed a disguised combination of industry and finance For example, in the current corporate integration, assetReorganizationDuring the construction of the project, the guarantee or rigid performance clause is usually not in the contract.contractIt is clearly stipulated in the document, but in a “pocket agreement” or other means. There are too many examples in this regard, and manybackgroundThe usual style of play.

The Fifth Plenary Session of the XIX Central Committee pointed out the need to “prevent the disorderly expansion of capital.” I think this formulation is timely and very specific. For the development of manufacturing industry, it is necessary to take full advantage of the driving role of capital, but also to avoid the disorderly expansion of capital, especially illegal and unscrupulous expansion. If not properly controlled and targeted, not only will your financial situation improve.costAnd once the company does not go public or its profits are not as expected, it will also cause social instability. In this regard, I have the following suggestions:

One is to increase investor education, eitherInvestment of fundsORBusiness investmentHowever, the “drawer pocket agreement” is not protected and is invalid.

The second is to strictly review investment compliance and clearly require investors to promise that there is no “withdrawal agreement” as a precondition for approval.

The third is to crack down on violations of the “drawer fund agreement.” Once such investment chaos is verified, no severe penalties will be awarded, and this will be the focus of rectification going forward.

The fourth is to increaseCaseThe rule of law propaganda For example, the Hunan High Court recently filed a lawsuit against Anxin on the Hunan Expressway.TrustIn one case, according to the “National Civil and Commercial Court” issued by the Supreme People’s Court on November 4, 2019jobsmeetingArticle 92 of the Act establishes:Trusted company、dealBankOther financial institutions such as asset managementproductThe trustee and beneficiary ofWarrantyFixed return on principal and interest, guaranteeprincipalThe people’s court will affirm that the clause is invalid for a contract that is not subject to guarantee against loss or has just fulfilled its clause. I believe that the verdict was timely and correct, for such cases publicity should be increased so that companies and financial institutions can learn from it.

(Source: Beijing News)

(Editor-in-charge: younannan)