Articles by "Finance Law"

Tens of billions of angel funds of funds Shenzhen China

Overweight! The Secretary of the Shenzhen Municipal Party Committee talks about the first demonstration, the Yuehai Sub-district Office. In the next five years, 740,000 degrees will be built, and the tens of billions of angel funds of funds will do this! Deep.

 

In the face of miracles created by Shenzhen over the past 40 years, people often ask: Why is Shenzhen? On October 10, Wang Weizhong, secretary of the Shenzhen Municipal Party Committee, was a guest on CCTV's "Dialogue" column to answer "Why Shenzhen". In the dialogue, Wang Weizhong talked about a lot of current hot topics, including how to do the Shenzhen Pilot Demonstration Zone? How does Shenzhen retain talent? How does the tens of billions of angel fund of funds that attract entrepreneurs and investors work? How to solve the shortage of resources in education, medical care and housing in Shenzhen? How to go after the reform has entered the deep water zone or even no man's land

 

Source: CCTV Finance Channel "Dialogue", Shenzhen News Net e company official micro

 

 

 

Moderator Chen Weihong: What I hold in my hand is a photo with special historical significance, which records the development and tremendous changes of the land under our feet in the past 40 years. 40 years ago, this was a small fishing village unknown to the public. Today it has become a modern metropolis ranked among the top five in Asia in terms of economic output. In the 40 years of reform and opening up, it has continuously written new chapters of the vicissitudes of the times. This city is Shenzhen. In the face of miracles created by Shenzhen in the past 40 years, people often ask: Why is Shenzhen? Today we have come to this city called Pengcheng, where we will feel the power and charm of the Dapeng flying high. 

The next round of applause welcomes our guests of this dialogue: Wang Weizhong, deputy secretary of the Guangdong Provincial Party Committee and Secretary of the Shenzhen Municipal Party Committee. Welcome Secretary Wang to our dialogue program. In fact, people often say that forty is not confused. As the secretary of the city’s municipal party committee, what kind of era label would you put on the city’s 40 years?

 

 

 

Wang Weizhong, Deputy Secretary of the Guangdong Provincial Party Committee and Secretary of the Shenzhen Municipal Party Committee: Shenzhen has completed a history of hundreds of years in developed countries in 40 years. It is a miracle of our country's modernization, urbanization and industrialization. But we just finished the first journey, and there is still a long way to go.

 

The "first demonstration" responsibility is very important

Moderator: I know that the central government has actually proposed a new goal for Shenzhen in this new era. This is the first demonstration zone of socialism with Chinese characteristics.

 

Wang Weizhong: This year marks the 40th anniversary of the establishment of the Shenzhen Special Economic Zone. It is also the first anniversary of our implementation of building a pilot demonstration zone of socialism with Chinese characteristics.

 

Moderator: From "first try first" to "first demonstration", the change is not just a literal word.

 

Wang Weizhong: Demonstrate first. You must not only demonstrate first, but also demonstrate success. So the pressure in this area is very high.

 

Moderator: I heard that Secretary Wang, who had a good sleep quality during the first few days when the opinion reached this city, suddenly suffered from insomnia for several days.

 

Wang Weizhong: To tell the truth, the responsibility is very great. On October 25, 2018, after inspecting Shenzhen, Guangdong, General Secretary (Xi Jinping) held a symposium in Guangzhou and delivered an important speech. At that time, the General Secretary proposed for the first time that Shenzhen should move forward in the direction of building a pilot demonstration zone of socialism with Chinese characteristics, and strive to create an urban example of a powerful modern socialist country.

 After I heard it, I felt that one was very excited, warm and encouraging, but at the same time I felt the responsibility and pressure on my shoulders. Because these tasks and strategic positioning are really not something that can be accomplished with ease and effort. 

In 2035, Shenzhen will be built as an example of a modern and powerful socialist country. Only 15 years will be left for us, which is 15 years ahead of the national time. 

Then by the middle of this century, the central government has positioned Shenzhen with the goal of becoming a global benchmark city with outstanding competitiveness, innovation and influence.

 

Moderator: We see in this picture, there are actually a few words, there are high-quality development highlands, there are models of urban civilization, there are pioneers in sustainable development, a demonstration of the rule of law in cities, and a benchmark for people's well-being.

 

Wang Weizhong: These five aspects are the strategic positioning of Shenzhen by the Party Central Committee and the State Council.

 

Funds of Funds for Shenzhen Special Economic Zone China

Moderator: Shall we see one by one? For example, high-quality development highlands. In fact, every city hopes to have a high-quality development, but ordinary high-quality development is not enough for Shenzhen. We must build a high-quality development highland.

 

Wang Weizhong: If you want to become a high ground, you should be a benchmark, and your development should be a model for others. This is a very high requirement. So I think that one aspect that is very important to this city is to continue to insist on innovation, innovation-driven, and make our economic development higher quality.

 

Moderator: This is probably a goal that can only be achieved by building an innovative entire industrial chain.

 

Wang Weizhong: You are right. In fact, Shenzhen has long realized an innovative system with enterprises as the main body, market-oriented, and deep integration of production, education and research. When I went to Silicon Valley in the United States in 2018, the Americans told me that hardware can't do you. Because Shenzhen’s industrial chain is very complete, especially in the electronic information industry, our output value accounts for one-sixth of the country and one-tenth of the world. But you have to take a closer look. In fact, we have "stuck necks" in many aspects. 

Therefore, in recent years, we have proposed and have initially constructed a basic research, technological research, industrialization of results, and technology and finance, and the last one is very important, adding talent support, such a whole process Innovation ecological chain. In this whole process of innovation ecological chain, we are relatively weak in the part of basic research.

 

Is there a good university in Shenzhen?

 

Moderator: We must truly do basic science research. If a city has no colleges and universities, there are no outstanding colleges and universities, in fact, the realization of our goal will be greatly reduced. In the past, people often focused on Beijing and Shanghai when they mentioned colleges and universities, and few people focused on Shenzhen. When someone says there are good universities in Shenzhen, how would you respond to them?

 

Wang Weizhong: Shenzhen has good universities. The Hong Kong University (Shenzhen), Shenzhen University, SUSTech and our Peking University, Tsinghua University, Chinese Academy of Sciences, and the institutions of higher learning established in Shenzhen have all made great contributions to the city.

 

Moderator: Among all the applause at the scene, our President Chen was the most excited.

 

Chen Shiyi, academician of the Chinese Academy of Sciences and president of Southern University of Science and Technology: First-class universities feed back a city, and a city breeds first-class universities. In Shenzhen, we had the hugely successful development of Shenzhen first, and then SUSTech.

 

Moderator: How has SUSTech developed in Shenzhen over the years?

 

Chen Shiyi: The average quality of SUSTech's current talents is very good. We now have 22 full-time academicians. Among the more than 500 teaching and research professors, more than 40% of us are national high-level talents. Just now you mentioned that this innovative basic research. Basic research, mathematics, physics and chemistry. There is an index called Nature Index, which is called Nature Index in English. In our natural index, China has now reached 17th, ranking around 60th in the world. This is an amazing achievement for a university where we are relatively small, with only 500 teaching and research programs.

 

Moderator: There is also a popular cradle of talents in Shenzhen. This university moved from Hong Kong on the other side of a river. I heard that this school is very popular now, and it is not easy to get into it?

 

Xu Yangsheng, academician of the Chinese Academy of Engineering and president of the Chinese University of Hong Kong (Shenzhen): The school is still relatively small and young, but it has been welcomed by all sectors of society. It is the fifth consecutive year that Guangdong Province has the highest admission score.

 

Moderator: Why did you choose to settle in Shenzhen in the first place?

 

Xu Yangsheng: Shenzhen is a very young city and a city of immigrants. These two parameters have caused us to build a university. Shenzhen is a very important and very good place to build a university. For example, in terms of our financial technology, at that time, we understood that Shenzhen was to be an international financial city. I understand that after the calculations, 1,800 relatively high-end financial talents will be recruited every year. When we did the survey, how many people were there in Shenzhen 10 years ago? Probably less than 20 people per year. Therefore, a large number of talents are needed. Who will cultivate this talent? Hong Kong trains students from Hong Kong, what should he do if Hong Kong (the student) is not willing to come? So I wonder if I can use Hong Kong's system and Hong Kong talents to cultivate our own people here. Now we are continuously training hundreds of people in Shenzhen every year. The talents in financial technology are all international and first-class talents.

 

Wang Weizhong: I said we have a good university.

 

Moderator: Really, a good university followed by another good university.

 

Chen Shiyi: We hope that the university will further promote the overall sustainable development of science and technology in Shenzhen. Our current layout is similar to that of Shenzhen, such as our Guangming Science (Learning) City and the Science and Education City of Xili Lake. We play a very important role in it.

 

Bright Science City: Provide a world-class scientific research platform

 

Moderator: The principal also mentioned the Bright Science City just now. What is the concept of Bright Science City?

 

Wang Weizhong: To reach a place with first-class talents, a world-class platform is needed. We often say that if you want to do well, you must first sharpen your tools. To build the Bright Science City, we are to provide a world-class scientific research platform and a platform for basic research. For example, like this Dr. Liu, he came back from abroad, and I have visited his laboratory several times.

 

Moderator: We applaud and welcome Dr. Liu.

 

Liu Chenli, director of the Institute of Synthetic Biology, Shenzhen Institute of Advanced Technology, Chinese Academy of Sciences: We are building a major infrastructure for synthetic biology, which is also the first batch of facilities and research institutes to be stationed in the startup area of ​​the Guangming Science City.

 Synthetic biology, it is a very new frontier cross field. If it can be summed up in one sentence, it is that it gives new functions to life and makes it available to us. Then the United States also regards this field as one of its export control technologies.

 

Moderator: When did you come to Shenzhen?

 

Liu Chenli: Back to Shenzhen in 2014.

 

Moderator: When you made the decision to develop in Shenzhen, would your colleagues have some worries. In such a cutting-edge scientific field, would you be a hero if you return to Shenzhen?

 

Liu Chenli: Shenzhen is now, and has been, for 40 years, an innovative city. It is willing to try new things, and it is willing to believe in young people, and it gives them opportunities to create new things. 

We have now moved from a laboratory to such a research institute with nearly 700 people. We are exploring a very interesting model called the upstairs and downstairs innovation and entrepreneurship complex.

 Upstairs is the research institute, downstairs is the enterprise. The purpose is to shorten the cycle of transformational research from technology to product. Biotech companies often have a very long period of time. If they fail to pass, most companies will die in this "valley of death." 

The enterprise shares the equipment with the research institute, so that it can start the operation of the start-up company at a very low cost. The research institute provides intellectual support for this enterprise. Those in white coats and suits are in a building, on the elevator, a technical problem may be solved.

 

Wang Weizhong: He talked about a very important aspect. The platforms built in the city are used by them for the main purpose, but at the same time, our public R&D platform must be open to everyone. So it is impossible for small and medium-sized enterprises to build such a complete and complete R&D platform.

 We are also talking about scientific instruments and equipment. You are not afraid that you will be broken, rusted, or outdated.

 

Moderator: The shared platform of technological innovation has also become a major attraction for attracting the world's top talents to Shenzhen and settle in Shenzhen. I heard that there is a master in Shenzhen, his surname is Gao, and he has attracted more than 30 academicians in just one or two years.

 

Gao Wen, academician of the Chinese Academy of Engineering and director of Pengcheng Laboratory: I have only been here for two and a half years and hope to be a Pengcheng laboratory here. Mainly the land in Shenzhen is easier to accomplish. It usually takes 5 to 7 years to prepare a large device that costs billions in other places. 

From the beginning of the argument to the final implementation of a little bit, and finally to complete it, 5 to 7 years. This is relatively fast, and some installations often take more than ten years. We have just built a large installation recently. From the establishment of the project to the completion of this installation, it cost 4.2 billion. Don't even think about it elsewhere.

 

Moderator: Not only can you see the speed of Shenzhen here, you can also see the characteristics of Shenzhen in your laboratory, special events, because I heard that you have a method called dual employment.

 

Gao Wen: This double hiring is really double hiring. It does not mean simply giving you a certificate or giving you a short title. It is not nominal, but real. For this double-employed person, we give him half of his salary and various benefits of five social insurances and one housing fund, but we don’t send it directly. We transfer the money to his original unit. 

This is the first and the second. All my facilities are open to him, to him and his students, so he is the person in the laboratory, and of course he is also the person in this other unit. After publishing the paper, the (Pengcheng) laboratory does not fight for the first place, the original unit is the first.

 

The scientist’s decision is left to the scientist

 

Moderator: What do you picture?

Gao Wen: It is to make Shenzhen have a high level of basic research and special needs of the country.

 

Moderator: Just lay eggs along the way, we don't have to divide the front, back, left, and right.

 

Wang Weizhong: In recent years, Shenzhen has introduced international talents and top talents. Especially like Nobel laureates, we have built more than a dozen Nobel Prize laboratories and basic research institutions in Shenzhen. 

These are the most cutting-edge. But if you want the Nobel laureate to work full-time in Shenzhen, or, according to our view, you will join Shenzhen, which is actually unrealistic. Therefore, Shenzhen has set up a laboratory. 

We are all named after the Nobel laureate's personal name. Then you must be in Shenzhen every year, you yourself, and you must bring your team and work in Shenzhen for more than one month. There cannot be the same mechanism in any other place. After all, Shenzhen people are truth-seeking and pragmatic. Don't fool me, I will treat you formally. A laboratory starts with a funding of 100 million yuan.

         

We often say that sitting on the bench is cold for ten years. Sometimes we also say that as a government that serves the technology sector and serves entrepreneurs, then you have to give him a bench to sit, give him a stable bench, and give him a bench that can sit on. Those with few arms and legs. Provide a better environment so that scientists who do basic research can do this with no distraction. 

Therefore, what is necessary to enable him to live a better and happy life, and to provide good education to his family or children, you must consider these comprehensive factors, so that the talent can stay solidly. this city. 

There is also the topic of basic research. The selection of basic research topics, the most cutting-edge topics, we top academicians, scientists, and Nobel Prize winners, what they propose to study, who else do you need to prove? 

Therefore, in our Shenzhen’s current system, we leave many things that should be decided by scientists to scientists, and let them make decisions. The government, according to our abilities, does its best to provide physical conditions and financial support. Let them do their research.

 

Ten billion angel fund of funds looking for the next Huawei, Tencent

Moderator: When a city has people and a platform in its innovation mechanism, there is actually an important indicator that we must mention, that is, funding. Especially for technology-based startups and start-ups, it is absolutely impossible to have no money.

 

Wang Weizhong: In this regard, we have made some systematic planning and established an angel fund of funds. The first phase made 5 billion, but because the demand is still relatively strong, now it has increased to 10 billion. 

When we studied at that time, it was said that after the rules and regulations were set, all government officials would no longer participate, and they would be left to the market to operate, and the parent fund and sub-funds would operate. As long as our employees have no moral hazard, we say that we must be tolerant and tolerant. Because of this, it is impossible, or most of them may fail. 

As long as there is no moral hazard, no malpractice, no such corruption, etc., we are all exempt. Then the highest risk in the city will be 40% of a specific project invested by a sub-fund, that is, we can bear 40% of the risk. So in this way, we think that to attract more start-ups, start-ups can settle in Shenzhen. We sometimes say that if we cultivate a (enterprise) like Huawei, Tencent, etc., then our money is actually very small.

 

Moderator: Fund managers with a scale of 10 billion are actually at our scene today. Applause to welcome Mr. Yongjian Wang. What kind of feeling does it feel like Mr. Wang manages such a large-scale angel fund of funds?

 

Wang Yongjian, Chairman of Shenzhen Investment Holdings Co., Ltd.: The host asked this question, which implies that the management of this 10 billion yuan seems very beautiful.

 

Moderator: What Secretary Wang means is that if you don't hear any noise, I don't blame you very much, so I think it's a good job.

 

Wang Yongjian: Actually, we are under a lot of pressure. Angel investment, as the earliest part of the entire venture capital, is an incubator for the development of high-tech enterprises and emerging industries. 

Just now, Dr. Liu mentioned that there is a valley of death, which actually means that our angel investment can help our company cross this valley of death.

 But let’s say that companies in this seed and start-up stage are actually very risky, and the probability of success is very small. Therefore, this one is not beautiful and very stressful.

 

Moderator: Do you have any plans for return on investment?

Wang Yongjian: We do not pursue the return of this part of the money, that is, economic return. Assuming that there is a loss, we first use this ratio. Just now (the secretary) said that there is a 40% ratio, and we lose it first. If we make money, we don’t want a penny, and we give it all to the investor and social funds, even No interest is required. 

This is to establish this kind of risk compensation mechanism to allow more funds from the society to be invested in seed and start-up enterprises, and to ensure the environment for innovation and entrepreneurship in Shenzhen, and to attract investors from all over the country and the world. 

Since Shenzhen came, in fact, such an ecosystem will basically be formed now. To tell a joke, there is a rumor in the world of investment. They all say that if you do not apply for this angel fund of funds when you come to Shenzhen, it means that your investment level and investment ability have room for further improvement.

 

Moderator: I think this has laid a particularly good foundation for the incubation, growth and future development of our technologically innovative enterprises. 

In fact, in the past 40 years, Shenzhen has also produced many excellent companies, whether it is Huawei, DJI, ZTE, etc., and it is particularly interesting that they are all born on the same street, this street It is very famous, called Yuehai Street. This street is quite hurt now.

 

Wang Weizhong: Speaking of the injury, I think you may be referring to the Sino-US trade friction. The United States has put extreme pressure and blows on some of our Shenzhen's leading companies, such as Huawei and other companies, on the entity list. 

So the Yuehai Sub-district Office, in Nanshan District, Shenzhen, is an area where scientific research and innovative enterprises gather. Regardless of injury, in fact, our companies have never been smoothly growing up so smoothly. 

Of course, the U.S. de-globalization unreasonably suppressed our companies, and that company was under a lot of pressure. But we also believe that our company, under the good policies of our country, and in a good atmosphere of innovation, I think our Chinese companies and Shenzhen companies, including those companies in our Yuehai Subdistrict Office, will definitely develop Better, the future must still belong to them.

 

Moderator: At the site of today's conversation, I also saw our conversation with an old friend Mr. Chen Zhilie, whose EVOC is also in the streets of Guangdong.

 

Chen Zhilie, Chairman of EVOC Group Board of Directors and Chairman of Shenzhen Federation of Industry and Commerce: These technology companies in Guangdong Hai Street, I think we are actually four "self", one is our own brand, and the other is independent innovation. I own 100% of the intellectual property rights, and then finally achieve independent control.

 

Shenzhen’s specialty is not lychees but entrepreneurs

Moderator: As an entrepreneur who grows with this city, how do you evaluate the growth space and environment created by this hot land for entrepreneurs?

 

Chen Zhilie: Last year, the All-China Federation of Industry and Commerce targeted 126,000 representative well-known entrepreneurs across the country, and there was a survey. So Shenzhen is considered by these entrepreneurs as the number one city in China’s business environment.

 

In fact, for us entrepreneurs, the business environment is just eight words, nothing is disturbing, everything will come. We think Shenzhen has done these 8 characters very well.

 When formulating these rules and policies, the government can make central enterprises, foreign enterprises, local state-owned enterprises, and private enterprises all be competitively neutral and treat them equally. Today, the specialty of Shenzhen is no longer lychees. Today, the most famous specialty of Shenzhen in the world is entrepreneurs.

 

Moderator: I know that Secretary Weizhong has a special liking for these specialties. During a discussion with entrepreneurs, Secretary Wang Weizhong announced his phone number to all entrepreneurs.

 

Wang Weizhong: Actually, there are many entrepreneurs in Shenzhen, big and small, including many of our grassroots cadres, neighborhood communities, my mobile phone, WeChat, they all have. 

So over the years, I have actually sent me a lot of opinions and suggestions, sometimes some, saying that these aspects should be done better, you can call criticism. In fact, I just wanted to give myself more channels to get information.

 

Chen Zhilie: We will deliver dry goods to Secretary Wang Weizhong. In fact, the Shenzhen Municipal Party Committee and Municipal Government came to solicit the opinions of the Municipal Federation of Industry and Commerce and then the private entrepreneur in the early stages of issuing some policies. 

Many of the final announcements, including the central government’s approval of Shenzhen’s policies, have seen many original texts. Certain passages are the appeals made to the municipal party committee and government of our entrepreneurs, which are very good.

 

Wang Weizhong: Let me give you an example. In 2018, there will be the issue of equity pledge. In fact, the earliest report I saw was the United Front Work Department and the Federation of Industry and Commerce. Then the Shenzhen Municipal Party Committee and Municipal Government will quickly investigate and investigate to understand this problem. 

We asked a dozen entrepreneurs to discuss what the problem was and how serious it was. Within about two weeks, three documents were issued to help companies resolve conflicts, solve problems, and overcome difficulties. Time waits for no one. Sometimes a day may pass, and a lot may be missed. If the capital chain of an enterprise is broken, it may be very difficult for the enterprise to restart. Therefore, to solve this urgent need, we must respond quickly and do our best to operate well with market-oriented methods.

 

Chen Zhilie: We in Shenzhen recently launched a national policy that is definitely first, and it is possible that the follow-up may not be able to copy this policy. We entrepreneurs feel very powerful. This policy means that if you come to Shenzhen, you only need to pay 15% personal income tax for the talents in short supply and high-end talents around the world. So how to identify them as talents? 

I personally advised Secretary Weizhong face-to-face, and I said that it is up to the government to determine whether he is a shortage of talents or high-end talents, but the company. Later, Shenzhen introduced this policy, which means that if a company gives him one million (annual salary), the government will no longer confirm it, and the government will implement it at 15% (personal income tax). If it is determined by the government, it is another efficiency issue. 

Between efficiency and possible loopholes, the Shenzhen Municipal Party Committee and Municipal Government has decisively chosen efficiency and trust in the market. Because of my own graduate students, half of them are in the United States today. I know that if they come back today, their first obstacle is personal income tax. If that is 15%, they will remove the biggest obstacle to coming back. And Shenzhen did it, which reflects the responsibility of the Shenzhen Municipal Party Committee and Municipal Government.

 

Moderator: While we are asking for efficiency, if the loophole does appear, will you consider the consequences?

Wang Weizhong: We want quality and efficiency. I think the most important thing is integrity. You have to trust people. I believe that our entrepreneurs, universities, scientific research institutes, and its managers, including some of its systems, are also for the sustainable development of its units for good. 

Whether the introduced talents, scientists, or engineers, the employer knows how much he contributes to this unit and to this research and development. If you don't believe him, then your value of knowledge and respect for real talents, isn't that empty talk?

 

Moderator: Let the value of talents be fully reflected, this is the greatest respect for talents.

 

Wang Weizhong: There are two statistics that I think are very convincing. We attracted more than 4 billion U.S. dollars in foreign investment in the first half of the year, an increase of 5% over the same period last year; there is another figure, that is, private investment increased by 100%. 

Of twenty, these two data fully show that foreign and private entrepreneurs are optimistic about China, Guangdong, and Shenzhen. I think this is very gratifying to us, and it also makes us more confident about the future development of this city and the construction of a pilot demonstration zone for socialism with Chinese characteristics.

 

Cai Juntao, Deputy Director of the First Section of the Engineering Affairs Center of the Water Affairs Bureau of Shenzhen Bao'an District: The above picture was in 2015, and it was also a photo before the Maozhou River was regulated. The water looks very dark intuitively, the pollution severity ranks first in the province, and it is a scar on the face of the Shenzhen Special Economic Zone. 

At that time, some citizens on the edge of the Maozhou River, in fact, in terms of their feelings and attitudes towards the Maozhou River, we can summarize them in three words: they pass their noses, live with their backs on their backs, and sleep with their windows closed.

 

Wang Weizhong: Like the Maozhou River, as Lao Cai just said, it is one of the darkest and most polluted rivers in Guangdong and even the country. When I went to see it in April 2017, it was really stinking, and the color of the ink is whatever it is. Water control is a systematic project. It depends on the river and the problem lies on the bank. 

So in the past few years, we in Shenzhen have probably made up for the shortcomings of so many years of construction in the special zone, nearly 7,000 kilometers of pipe network, and more than 13,000 communities have been treated. To achieve rain and sewage diversion, we must correct the source. Then there are many underground rivers in Shenzhen in the past. 

The underground sewage corridors and channels are three meters wide and four meters deep. The silt inside is two to three meters thick, which is the sludge in the development of more than 30 years, so it is not cleared. 

 After you have cured the water, (water) enters it, and then drains it into our rivers and seas. That still has a great impact on water pollution. Therefore, Weihong, in terms of water control over the past few years, it should be said that the municipal party committee and municipal government, the people of the city, and the enterprises we participate in, including design units, have invested tremendous efforts. This is not a difficult matter, but now we have done it. We have fulfilled our promise to the country, to the province, and especially to the people in the city. We were one year ahead of schedule. 

At the end of 2019, Shenzhen took the lead in eliminating black and odorous water bodies in the country, and all 159 rivers were eliminated. Then there is also that we use our own image to say that we don't even need to slap the place, and 1467 (small) black and odorous water bodies in the city have been eliminated. Therefore, all water bodies in Shenzhen are now eliminated.

 

Moderator: The governance of the river we just mentioned is not only related to the sustainable development of the city, but also closely related to the happy life of every citizen in our city. In the field of people's livelihood and happiness, is there something that you and our entire government have done more than water control?

 

Shenzhen will provide 740,000 new degrees in the next five years

Wang Weizhong: Education and medical care, including housing, are some of the areas that our citizens are most concerned about. Let me focus on the issue of education, for example. The main problem we are facing now is that the degree is a bit tight, and the educational resources are unbalanced and unbalanced.

 

So why is Shenzhen so stressed? Probably in Chinese cities, or even in cities around the world, there is rarely such a city, which carries more than 20 million people in such a small space, and every year, four or five million new people enter Shenzhen. . Regardless of your household registration and nationality, we need our government and city to provide this compulsory education from kindergarten to this junior high school.

 

The investment in these schools we plan to build is very large. In the past three years, we have invested more than 220 billion yuan to build these educational aspects. So far, we have solved the problem of enrollment for all children, that is, how can we provide more higher-quality and better-quality education? This is what we must strive for.

 

Wang Weizhong: Then in the next five years, we will build and provide 740,000 new degrees, and the government will also invest RMB 400 to 500 billion for our newcomers or those we were born and brought in, in Shenzhen. Children, take care of their education.

 

Moderator: So I know that there are actually many innovations in Shenzhen's livelihood services. For example, if you want to register a certain company, it may be a machine on the street. Just insert your ID card.

 

Wang Weizhong: Our current city is more intelligent and intelligent, that is, thinking and having warmth, so that the people will feel more happiness.

 

Liu Jiachen, director of the Shenzhen Municipal Service Data Administration and Party Secretary: It is particularly convenient for enterprises and citizens to do things in this city. For example, let the masses do things without running once, it becomes the norm, running once is the bottom line, running many times is an exception. 

One machine, one thing one time. In the evaluation of online government services in key cities across the country, Shenzhen has also won the first place for two consecutive years.

 

Wang Weizhong: I went to the community to see that it has many machines for convenient services. You can ask them at the grassroots level, which is one machine, has it been implemented there?

 

He Xinsheng, Secretary of the Party Committee of Beizhan Community, Minzhi Street, Longhua District, Shenzhen: We have.

 

 What can we do on the same machine?

 First of all, our community has a service window for our community, and our service window is also one window, that is, all of our family planning, pension, labor, and insurance, we can handle all these things at one window.

 But during your non-working day, we also have a self-service area on the left of our party and government center.

 There are four machines in this self-service area, which can handle the renewal of the Hong Kong and Macau Pass, the payment of traffic violations, the query printing of the social security card, etc., and there are more than one hundred services.

 

The community’s party-mass service center can implement our work, the care of the Party Central Committee, and the Party’s policies in the place closest to the citizens. At the grassroots level, if we play the role of fortress well, we can actually do a lot of things better.

 

40 years ago, the central government decided to establish a special zone in the hope that Shenzhen could break a bloody road; today, 40 years later, the central government still hopes that Shenzhen will build a pilot demonstration zone.

 It should be said that in the context of Shenzhen's development throughout the past 40 years, there must be a spirit that always exists.

 

Wang Weizhong: In the 40-year special economic zone, we talk about the spirit of the special zone, that is, dare to venture, dare to be the first, and work hard. This is our special zone spirit.

 

So now we may think that we are also condensing our new era, Shenzhen should inherit the spirit of the special zone of development, we must adhere to. 

In December 2012, General Secretary Xi Jinping, the first stop after the 18th National Congress of the Communist Party of China, came to Shenzhen and arrived in Qianhai. 

At that time, the General Secretary said that all the policies have been given to you. The secretary also hopes that we will continue to dare to dare to try and be the first to eat crabs. 

Then the second one is "openness and tolerance." Shenzhen, a city of immigrants, comes from all corners of the world. Then the doors of this city need to be opened wider and wider, and then the failure of innovation and entrepreneurship must be tolerated. 

The third sentence I think is that we are now fully governing the country according to law, a demonstration of a city governed by law. Our city should be "pragmatic and legal." You have to uphold and respect the law.

 

Reform into the deep water zone or even no man’s land

In the future development of Shenzhen, the so-called hard bones may follow one after another. How will you prepare for difficulties, challenges and even failures?

 

Wang Weizhong: Our reforms are indeed entering the deep water zone. Some are no-man's land. It is really difficult to have no hard bones. 

When we changed it 40 years ago, maybe our standard of living at that time, our wealth, that is, there were not so many pots and pans, we have today. 

The per capita GDP has reached 30,000 US dollars, the highest in the country, and the per capita output of this city is the highest. So we have this happy life today, and then we will reform again. In fact, reforms are all to touch interests.

Those who want to touch the cake of some people, and whoever you touch will be unhappy, so our reform is actually the hardest thing to do. Inward, change yourself.

 

Don't be afraid of many problems. The key is whether you can face the problems squarely. After 40 years of development, Shenzhen should be the most perfect place to embody the advantages of our system. 

We often say, I tell friends at home and abroad, that Shenzhen is such a city created by the Communist Party of China, so it is an important window for the outside world to observe China’s reform and opening up, and it is also an important window for us to show the outside world China’s reform and opening up and socialism with Chinese characteristics Such a window of great achievement. 

So we may think the confidence that we stick to our path is very important. Firm confidence, firm conviction, and unswervingly run your own affairs well, you must perseverely follow the path you look for.

 

During the past 40 years, Shenzhen has been eager to be the first assault boat to reach the other shore. Only Shenzhen knows the difficulty of this process and how many challenges it is full of. We may think at this moment we will not only sing a happy birthday to the Shenzhen Special Economic Zone, which has celebrated its 40th anniversary, but also send our most beautiful blessings to this city, which is at the forefront of reform and opening up. Brocade.

 

"

 

 


Financial Analysis Laws and Conventions

Every company’s projects, goals, budgets, funding, liabilities, strengths and other such financial aspects need to be examined periodically as an important key to a company’s retrospective features and future betterment and assessment of potential of business and productivity. Everything needs performance in a very legal way keeping relevant laws and rules in mind. This course of examination would be termed as Financial Analysis in the corporate and banking language.

Financial Analysis is an important feature for companies as it enables the figuring out of the potentials of the companys performance. It enables regulating authorities and governments to ensure that companies are adhering to the set standards. It helps in maintenance of financial stability and health of the companys life.

 An analysis of instruments for investment can be done by external company organs as well as the internal parties.

Analyses are the insurance and performance of the firm. It gives a skeleton of the company's accounts and financial figures giving experts of the company ideas and suggests strategies for the betterment of the company and its progress and increased profitability. 

This aids in predicting and figuring out future earnings and thus accordingly adjust current expenses, funding and helps in the calculating the taxation for the firm as well.

 It makes the current financial stand clear and explicit and thus helps have an idea of the requirements for the firm in future.

Infographics Chart showing Financial Analysis Procedure



Why is financial analysis important?

When a financial analysis is conducted in a running business, the managers will get to know how the business is performing, whether it is bringing in expected profits or if it needs further improvements to earn profit. 

The direction in which a business should be taken can be decided through these analysis reports. Every major company, business or a project has its own financial analyst to constantly study their finances at every step and direct them accordingly.


Analysts normally go through the numbers involved in any business or project. They usually aim to achieve specific goals through each financial analysis. 

Often it is conducted to understand the economic trend of a certain business. Or it could be undertaken to decide on long term goals or financial plans for a firm. It can also be helpful setting a financial policy for a company.


Another aspect of a financial analysis is the historical figures and data. Analysts make use of the past financial statuses and cash flow of the given entity to study the present scenario better and thus generate plans for future. Such plans could seriously determine the health of any company.

 The information procured through the analysis is used in making critical decision that will determine the future of any entity.

Sometimes, financial analysis is conducted before mergers or acquisitions to decide whether or not it will be profitable to buy the company off. It can also help in figuring out the amount to be invested per share.

 Basically, financial analysis is an assessment conducted before taking any major business decisions.


What are the elements of financial analysis?

There are five key elements to any financial analysis. These elements are of primary concern in analyzing the financial statuses of organizations. They are as follows:

   1.   Revenue

For any business of seriousness, revenue acts as the prime source of money. In long term plans, the quality, quantity and timing of revenues can play major roles. While considering this, there are several facets that come under the umbrella term 'revenue '. They include:

   ·       Revenue growth

   ·       Revenue concentration

   ·       Revenue per employee

Revenue per employee is a ratio which measures the productivity of any business. For the ideal growth of a business, it is desirable that no single customer should hold more than 10% of the total revenue of the firm.


    2.   Profits

Profit can be sub-divided into three categories:

  Ø Gross profit margin

   A good gross profit means your company is strong enough to suffer comparative degree of losses or downfalls in the form of revenues or expenses.


  Ø Operating profit margin

   The higher the operating profit margins of the company are, the better will be your company financially. It shows your company's ability to make a profit regardless of how the operations are financed.


  Ø Net profit margin

   This is the excess of profit that is available to be given away as dividends or investors or to owners. It can also be utilized for any reinvestments within the firm.

 

   3.   Operational Efficiency

This refers to the efficiency with which the managers are making use of the resources available before them. A lack of operational efficiency will mean that the company is having low growth rates with little profits.

      

   4.   Capital Efficiency and Solvency

Capital efficiency and solvency are the factors that might interest potential lenders, banks or investors of your company. The factors affecting the efficiency and solvency are:

   ·       Return on equity which is the returns that any investor is receiving from the business.

   ·       Debt to equity which is a track of the leverages you are using to run the business.

 

   5.   Liquidity

A detailed study of your company’s liquidity explains your ability to bring out the necessary cash to cover everyday expenses. If the liquidity of a firm falls low, there is no amount of revenue or growth that can compensate the loss.

 The two factors to be considered while analyzing the liquidity of a firm are:

   ·       Current ratio

   ·       Interest coverage

Financial Statements Analysis / Types of Financial Analysis

Horizontal analysis

In this method of analyzing Company’s financial records such as balance sheet, cash inflow etc. will be studied and compared for a period of consecutive time span also called as the reporting periods.

 The observed data is depicted in a horizontal manner for their corresponding year for a range of years and this figure is then compared with the year with which the study began also called as the Base Year.


Vertical Analysis

It’s the analysis of data for a particular period but pertaining to various aspects of the financial statement of the organization. It's also called as the Static Analysis as its focal point centers on the data of only one year.

This method analyses the structural relationship between various factors of a financial statement. Here each item is represented by means of percentage or proportionate ratio of the base figure selected from the same statement.

The size statements and proportional ratios are considered as important tools in analysis. This method helps in understanding the expenses over an income statement put up in percentile of the net sales.


Dynamic Analysis

The depiction of data can be also in the graphical mode. Since the study records the data over a period it called as the Dynamic Analysis.

 This kind of analysis helps to understand the trends and patterns of different kinds taken up in the working of the company and its effect and efficiency and if required then what modifications to be made to counter the downsides of the currently deployed systems.


Internal Analysis

Serves the purpose of vigilance over the finances and operations as well as resultant performances of the company and it’s taken up by the internal organs such as the management itself.

 This analysis is more efficient and authentic as it’s executed by the internal members of the company.


Cross Sectional Analysis

It comprises of the analysis of different companies from the same industry as in the competitor entities of the company subject to analysis for an immediate time frame. 

It is also called as the inter firm analysis.


External Analysis

General public and credit agencies, investors, potential investors, creditors, potential creditors, and the government agencies conduct this method of analysis though it serves only limited purpose as they don’t have any source to amass the internal data and hidden accounts of the company.

Hence the external analysis result is more or less derived from the data observations from the published financial statements. Nonetheless the government in the near past has directed companies to put up more detailed information subject to external analysis.


Time Series Analysis

It comprises of analyzing the outputs of the same company for a vast time frame for understanding the success of implemented strategies and so on.


Financial analysis ratios

Analysts have developed a number of ratios to make their job easier in making comparisons between various financial entities of companies, organizations and projects. 

These are broadly classified as Activity ratios, Liquidity ratios, Solvency ratios and Profitability ratios. 

Each of these ratios has sub divisions in them which facilitate a thorough analysis of every factor regarding a business for a total and sweeping investigation of the finances.


Activity Ratio

The Activity ratios are in fact turnover ratios. They point to the efficiency with which assets are used inside a company. This gives the investors an idea of the proceedings and expenses within a company. They are:

1.   Inventory turnover

This shows the efficiency with which inventories are sold off in a business. If the inventory turnover is higher than the industry an average, it means the business is on a path of growth. 

On the other hand, a too high inventory turnover may be indicative of the inefficiency of the business to meet with its increasing demands.

2.   Payables turnover

This is a measure that shows how fast the company is paying off the bills it owes to third parties. With a payables turnover higher than the industrys average, then it means the company is well off to make its own payments.

3.   Receivables turnover

Receivables turnover is defined as a measure of how quickly and efficiently a company collects on its outstanding bills.

4.   Asset turnover

Asset turnover is a measure of the companys efficiency in converting its assets into revenue.

Liquidity Ratio

The liquidity ratios are the most widely used of ratios in a financial analysis, second only to profitability ratios. They measure a companys ability to meet its shirt term obligations. Hence these are the ratios that creditors usually look for. 

There are three sub-divisions to liquidity ratios. They are:

·       Current ratio

A current ratio compares the current assets in possession of a company with the current liabilities with it. This finds out whether or not the business can pay off its debts through liquefaction of its assets in case of an emergency.

·       Quick ratio

This ratio compares the cash, short-term marketable securities and accounts receivable to current liabilities.

·       Cash ratio

The cash ratio is the ratio between the cash and easy liquefied assets in a company to the companys current liabilities. The company is considered to be profiting if the ratio is higher than 1.

Solvency Ratios

These ratios measure a companys ability to meet its long term liabilities. The ratios counted as solvency ratios are as follows:

Ø Interest coverage ratios

This is also known as times interest earned. This compares a companys cash in-flow with the payments that are made towards interests.

Ø Debt-to-equity ratio

This ratio shows companys debt capital versus its equity capital.

Ø Debt-to-assets ratio

The debt-to-assets ratios, as its name suggests, is measure of the percentage of assets that are financially supported by debts.

Ø Debt-to-capital ratio

Similar to the debt to assets ratio, the debt-to-capital ratio measures the percentage of a companys capital that is financed by debts.

Profitability Ratios

The profitability ratios of a company examine its ability to earn profitable returns. It is always advisable for a firm to compare its margin ratios with those of its competitors and the industry averages. The various types of profitability ratios are:

Ø Gross profit margin

A simple ratio between the gross incomes of a company to the net revenue it pays. It is said that the gross profit margin is a reflection of the companys pricing decisions and product costs.

 

Ø Operating profit margin

This ratio shows the difference between the operation income and the net revenue. The operation income of a company can found when yours subtract the operational expenses from the gross income of the company.

Ø Net profit margin

 The comparison between gross profit and operating profit margin.


What are Financial analysis tools?

Three major documents are used in creating a financial analysis report. These are tools anyone or any analyst would need to conduct a financial analysis:

Cash flow statement

A cash flow statement is a lot similar to an income state that in that both these statements record the performance of a company over a given period of time.

 It gives the exact statement of the income generated by the company during the given period. It gives a clearer picture of the company’s ability to manage its expenses.


Income statement

Unlike a balance sheet, an income statement gives information about the financial performance of any company over a specific period of time. It stresses more upon the companys future viability that it’s present financial stability. 

The most important factors considered while creating an income statement are revenues earned, expenses met with and the overall profit or loss incurred. 

The revenues further include royalties, interests, and those of sales.


Balance sheet

A balance sheet is an extensive documentation of all the assets available for trading within a business, especially the financial and the physical resources. It is, however, a mere state that of the assets and does not include information about how efficiently these assets are being used by the managements. 

Assets and liabilities form the major content of balance sheets, in general. Thus, a balance sheet shows the current financial state of a company only.

After going through this content we will be able to:

   ·       Understand Financial Analysis Meaning

   ·       Thoroughly understand Financial Analysis and Control

   ·       Understand Financial Analysis Ratios

    ·       Make better use of Financial Analysis Tools

   ·       Make Financial Analysis of a Company

   ·       Determine best use of Money

   ·       Able to select optimum Financial Analysis Course

    ·       Able to make appropriate presentation or financial analysis ppt help

   ·       Find help as regards Financial Analysis Project Management

  

The above list is not so far-reaching. There shall be several benefits after thorough study of this article and on other pages.



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