The 2023 ** Economic Work Conference was held in Beijing from December 11 to 12, 2023. This ** economic work conference will deeply summarize the economic work in 2023, deeply analyze the current economic situation, and systematically deploy the economic work in 2024. For the economic work in 2024, the meeting emphasized nine key tasks, including leading the construction of a modern industrial system with scientific and technological innovation, focusing on expanding domestic demand, and deepening reforms in key areas.
Judging from the content of the 2023 ** Economic Work Conference, there is no direct mention of China**. However, as far as the nine key tasks are concerned, many of them are closely related to the market. For example, in the first key task, that is, "leading the construction of a modern industrial system with scientific and technological innovation", it is mentioned that the development of venture capital and equity investment is encouraged, which is actually closely related to China's capital market or China's capital market. For another example, in "deepening the reform of key areas", it mentions "in-depth implementation of the reform of state-owned enterprises", "promoting the development and growth of private enterprises", and "promoting the development of small and medium-sized enterprises", which are also related to China** or China's capital market.
As for the second key task, we will focus on expanding domestic demand, and this work content is closely related to China. For the arrangement of this key work, the first economic work conference proposed that it is necessary to stimulate potential consumption, expand profitable investment, and form a virtuous circle in which consumption and investment promote each other. Promote consumption from post-epidemic recovery to continuous expansion, cultivate and expand new consumption, vigorously develop digital consumption, green consumption, and healthy consumption, and actively cultivate new consumption growth points such as smart homes, cultural and entertainment tourism, sports events, and domestic "trendy products". Stabilize and expand traditional consumption, and boost bulk consumption such as new energy vehicles and electronic products. Increase the income of urban and rural residents, expand the size of middle-income groups, and optimize the consumption environment.
In fact, among the above-mentioned measures, whether it is to cultivate and expand new consumption, or to stabilize and expand traditional consumption, it is inseparable from a crucial point, that is, "increasing the income of urban and rural residents". Without an increase in the income of urban and rural residents, all consumption will be empty talk, and the expansion of domestic demand will only be talk on paper, and the formation of a virtuous circle in which consumption and investment promote each other will also be a castle in the air. Therefore, efforts should be made to expand domestic demand and form a virtuous circle in which consumption and investment promote each other, both of which are inseparable from the increase in the income of urban and rural residents.
However, increasing the income of urban and rural residents is not an easy task. Although salary increases can increase the salaries of civil servants and employees of public institutions, it is very difficult for employees of many enterprises to increase salaries. After all, salary increases will increase the cost of businesses, which will make it more difficult for small and medium-sized enterprises to survive. Not to mention the fact that there are so many freelancers and unemployed people that there is simply no one to supplement their income.
And boosting, so that even like the United States, out of the slow bull market of more than ten years, this is an effective way to increase the income of urban and rural residents. After all, there are a large number of investors in China's ** market, with more than 2 account holders200 million people (households), and the threshold for market entry is low, once the bull market is ushered in, especially when the slow bull market is ushered in, this will attract more investors, and the number of investors will increase sharply, and more investors will get a significant increase in investment income because of the slow bull market, or even multiplied. In this way, the increase in the income of urban and rural residents will become a reality.
This was followed by a significant increase in domestic demand. After all, the investors in ** are the most willing to spend the group. When they make money in **, especially when the money-making effect in ** continues to exist, investors are groups that dare to consume and are willing to consume. When they make millions, or even tens of millions, they are willing to buy luxury houses and luxury cars, and they are also willing to expand traditional consumption and carry out new consumption. Investors are definitely not stupid people who don't allow themselves to live hard times when they make a lot of money. The reason why they are living a poor life today is because their wealth has shrunk a lot, which has caused them to lose the ability to spend. As long as they can be boosted and can get out of the bull market, their spending power will be restored.
And in the case of boosting, getting out of the slow bull market, a virtuous circle of consumption and investment promoting each other will really take shape. Because investment makes money, it can also promote consumption, and at the same time, because investment makes money, it will drive more people to join the investment team, and in the case of more investors making money, it will promote the further growth of consumption. The growth of consumption has brought about an increase in domestic demand, promoted the development of the domestic economy, brought a good market environment for investment, and become the driving force for investment, and a virtuous circle of mutual promotion between consumption and investment has also been formed.
Therefore, as far as expanding domestic demand is concerned, whether it is to increase the income of urban and rural residents, or to form a virtuous circle in which consumption and investment promote each other, it is a very critical thing to boost the country and let it enter the bull road. Boosted, entering a bull market, will strongly promote the development of China's economy and bring China's economy out of the trough. Otherwise, the sluggish and bearish will become a burden to China's economic development and drag China's economic development back. Therefore, it should be a crucial event for China in 2024, and it is expected that managers can lead China to the bull road.