The Paper Liu Zhengtu

Today, I want to share with you some reform stories that happened from the late 1970s to the mid-1990s. I called it the age of passion and romance. Many important reforms took place in that era. Although I personally experienced that era, I didn’t participate in much discussion about reform, especially in the 1980s. But ten years ago, in order to commemorate the 30th anniversary of reform and opening-up, I spent my summer vacation in Canada and wrote a book, from which I sorted out a lot of materials of that era and found it really wonderful. Today, with memories and some precious pictures, let’s walk into that passionate time and see how many important reforms started and how they were promoted.

I have always said that in the past 40 years, the most romantic and wonderful chapter of reform took place in the 1980s. Many economists tend to regard 1993 as a watershed in China’s reform and opening up. In November 1993, we convened the Third Plenary Session of the 14th CPC Central Committee, and adopted a decision on establishing a socialist market economic system. Because of this decision, the reform before and after 1993 was very different in style, and the reform after that was accelerated. In a few short years from 1994 to the end of 1990s, the major reforms needed to build a socialist market economic system have been basically completed. Most of the subsequent reforms are secondary or technical. It can probably be said that the decisive reform was completed when the old man Deng Xiaoping was alive.

Then, I’ll start from 1994.

1994 Jinglun Conference: Establishing Modern Company System

Professor Oliver hart, a famous American economist.

First, let me show you a photo, Professor Oliver hart. He is the winner of the 2016 Nobel Prize in Economics, a professor of economics at Harvard University in the United States, and once served as the head of the Department of Economics at Harvard University. He came to China in 1994 and attended an important meeting-Jinglun Meeting.

Jinglun Hotel, a famous Japanese hotel next to Beijing International Trade Center.

At that time, many famous economists attended the 1994 Beijing-Lund Conference. Oliver hart was one of them, including two other Nobel Prize winners in economics at the University of Chicago.

In 1994, the Jinglun Conference was held.

On August 23-26, 1994, the State Economic and Trade Commission and the research group of "Overall Design of China’s Economic System Reform" and "Comprehensive Analysis and Reform Design of China’s Tax System and Public Finance" jointly held an international seminar on "The Next Reform of China’s Economic System" in Beijing Jinglun Hotel. Some people think that it initiated the spread of the latest development of microeconomics in China, and introduced the reform into the deep research of microeconomic foundation, which is called "Jinglun Conference".

Along with Oliver hart, he came to China to attend the Jinglun Conference, and a very famous professor was Professor Aoki Masahiko.

Professor Aoki Masahiko, a famous Japanese economist, passed away in 2015 and was a professor of economics at Stanford University.

The "Jinglun Meeting" was actually discussing how to reform the state-owned enterprises in China, and when the meeting was held, the state-owned enterprises were facing a huge challenge-the debt problem. At that time, the debt problem of state-owned enterprises was the most puzzling problem for their development.

The topics of the meeting mainly include, how to reorganize state-owned enterprises? How to restructure the debts of state-owned enterprises? How to reorganize state-owned enterprises? At the "Jinglun Conference", Professor Oliver hart and Professor Aoki Masahiko made many valuable analyses and suggestions in these aspects.

Professor Oliver hart is a scholar who studies enterprise contracts, so he has a lot of ideas about it, and these ideas have actually influenced the reform of state-owned enterprises in China. In the later period, our methods of restructuring state-owned enterprises and restructuring the debts of state-owned enterprises, including the establishment of four state-owned asset management companies to solve the debt problems of state-owned enterprises, were all influenced by the topics discussed at the "Beijing-Lun Meeting".

Professor Aoki Masahiko put forward a very important concept at the Jinglun Conference: Insider Control)[ Editor’s Note: Insider control refers to the phenomenon that the operator controls the company under the premise of the separation of ownership and management right (control right) in modern enterprises, which is caused by the inconsistency of interests between the owner and the operator]. This concept has a great influence on our domestic economists. State-owned enterprises are prone to the phenomenon of "insider control". In other words, outsiders can’t help them solve the problem of "insider control", so state-owned enterprises must be reorganized. Including many of our current concepts on the reform of state-owned enterprises, such as "establishing a modern enterprise system" and "establishing current corporate governance", did not exist before 1994. It was not until the "Beijing-Lund Conference" that the decision on the reform and reorganization of state-owned enterprises became a consensus idea of change, and it was written into the relevant important documents of the central government many times.

The "Jinglun Meeting" was held to implement the spirit of the decision of the Third Plenary Session of the 14th Central Committee on establishing a socialist market economic system, because in this decision, changing the operating mechanism of state-owned enterprises and establishing a governance mode that is compatible with the market economy became the core issue.

The Third Plenary Session of the 14th CPC Central Committee was held in November 1993, which was the first time that the concept of "market economy" was clearly put forward after the reform in 1978. It has been 15 years since the Third Plenary Session of the 11th CPC Central Committee in 1978. The decision of the Third Plenary Session of the Twelfth Central Committee of the Communist Party of China in 1984 only mentioned "commodity economy" and failed to put forward "market economy". Although we say that the reform and opening up began in 1978, in fact, the Third Plenary Session of the 14th Central Committee in 1993 first proposed to establish a socialist market economy.

For our reform in the past 40 years, the Third Plenary Session of the 14th CPC Central Committee was a watershed. Because we admit that the purpose of our reform is to establish a socialist market economy, the reform has been accelerated after that. I have generally reviewed that in the four to five years after 1994, we have basically finalized the important reforms needed to establish a market economy system, such as fiscal tax-sharing reform, price liberalization, urban housing system reform, the introduction of commercial banking law, the merger reform of foreign exchange system and exchange rate, the strategic restructuring of state-owned economy and corporate governance reform in 1995, and the "grasping the big and letting the small" of state-owned enterprises in 1997.

In the past, we always said that China’s economic reform was gradual, crossing the river by feeling the stones and taking two steps back, but after the Third Plenary Session of the 14th CPC Central Committee in 1993, China’s economic reform became quite radical.

Deng Xiaoping’s speech in South China in 1992: China’s reform suddenly accelerated.

Before the Third Plenary Session of the 14th CPC Central Committee in 1993, there were controversies and differences on the ideological and theoretical levels in all aspects of reform. There are not only arguments between ideological circles and intellectuals and economists, but also arguments and differences of opinion within the party. It is the checks and balances produced by these open and closed debates that make the reform in the 1980s relatively cautious and slow.

However, in the 1990s, especially after Deng Xiaoping delivered a speech on the South in 1992, the ideological and political environment within the Party changed, and these arguments and differences still exist, but the reform has been ahead of the arguments. This is attributed to Mr. Deng Xiaoping’s "Southern Speech" in 1992, which promoted the market-oriented reform, and he did not advocate endless arguments, because that would delay the timing of reform. Deng Xiaoping once said during his southern tour in 1992 that "it is my invention not to argue".

The textbook The Chinese Economy, published by Professor Barry Norton of the University of California, San Diego, also tells the process and stages of China’s economic system reform. There is a similar statement in his book. He thinks that after 1993 and 1994, the process of reform in China suddenly accelerated.

This is obviously that the word "market economy" has opened the door for reform. At the Third Plenary Session of the 14th CPC Central Committee, the words "building a socialist market economy" were written into the decision, and Deng Xiaoping’s talk in the south played a very important role in promoting it.

Deng Xiaoping was in Wuchang, Shenzhen, Zhuhai and Shanghai from January 18 to 21, 1992.

Deng Xiaoping felt that his thoughts should be more emancipated and the pace of reform should be greater. Deng Xiaoping’s southern speech declared to the world: We should be more open, our reform will not go backwards, and our reform pace will only be faster. "

1990 Chinese New Year in Deng Xiaoping and Shanghai: Pudong will catch up later.

Deng Xiaoping came to Shanghai for the Spring Festival for five consecutive years from 1988 to 1992. I didn’t come in 1993, but I came to Shanghai for the Spring Festival in 1994. After 1994, he did not appear in public until his death in 1997.

During the Spring Festival in 1990, Deng Xiaoping told the leaders of Zhu Rongji and other cities that I made a mistake. At that time, Shanghai was not added to the four special zones. Shanghai is our trump card. It can be seen that Deng Xiaoping speaks highly of Shanghai and Shanghainese. He thinks that the development of Pudong in Shanghai is a bit late, but he also says that Shanghainese are smart and can certainly catch up. This was a conversation with Zhu Rongji at the end of January, 1990. After the Spring Festival, he returned to Beijing and told the central leaders that although I am retired now, I have one thing to ask you, that is, the development of Shanghai Pudong.

Under the impetus of Deng Xiaoping, the Central Committee immediately held a meeting on April 10th, 1990, and adopted a decision on the development of Pudong. On April 18th, 1990, then Premier Li Peng came to Shanghai to announce the development of Pudong.

Facts have proved that although the development of Pudong is later than that of the four special zones, after 28 years of development, Pudong has achieved great development achievements and achieved great success. The GDP of Pudong was 6 billion 28 years ago, and now it is 1 trillion. Shanghai’s GDP3 is 3 trillion, and Pudong accounts for 1/3.

In 1991, Deng Xiaoping came to Shanghai for the New Year. He said to the leaders at that time: "It is both a bad thing and a good thing to develop late. You can learn from the experience of Guangdong. " It can be seen that he has always been very concerned about Pudong.

The conception of special economic zones in 1979: a chain reaction triggered by an investigation report

Four special zones in Guangdong and Fujian were developed earlier than Pudong. However, Shekou in Shenzhen was developed earlier than Shenzhen Special Economic Zone.

In April, 1978, the Ministry of Foreign Trade and the State Planning Commission sent a delegation to Hong Kong and Macao. After returning, the delegation wrote a report, which suggested that we should dock with Hong Kong and Macao in two places near Hong Kong and Macao and try to do some export processing business. At that time, I chose two places: Zhuhai near Macau and Baoan County near Hong Kong, which is now Shenzhen. Later, this report was distributed to all the participants at the Third Plenary Session of the Eleventh Central Committee as a meeting material. This report is very important, and it is this report that triggered the idea of Shekou Industrial Zone and later Special Economic Zone.

Comments on Li Xiannian’s Investigation Report to Hong Kong and Macao.

Reading the biography of Yuan Geng (editor’s note: former Party Secretary of Shekou Industrial Zone), we can see his ups and downs life. Kang Sheng persecuted him and went to prison, but after he came out, he arranged a job in Hongkong’s China Merchants Bureau through Ye Fei’s relationship. When Yuan Geng died a few years ago, someone commented on him: "Without Yuan Geng, there would be no Shenzhen now." In fact, Yuan Geng is an advocate of Shekou Industrial Development Zone. At that time, he advocated the establishment of Shekou Industrial Development Zone, which was stimulated by the investigation report of Hong Kong and Macao. At that time, he said, "Why can’t we build a freight terminal in Shekou? He calculated the cost of the industrial zone. He said that the cost of Shekou is very different from that of Hong Kong. If there is a Shekou industrial zone, goods from Hong Kong can be placed at the dock in Shekou, because the rent in Shekou is relatively low.

Cover of Yuan Geng’s memoirs

Under his active promotion, Guangdong established Shekou Industrial Zone near Hong Kong. Shekou Industrial Zone is earlier than Shenzhen, Shenzhen Special Zone was formally established in 1980, and Shekou Industrial Zone was established in 1979.

The economic investigation report of Hong Kong and Macao actually triggered a series of events: Yuan Geng proposed the establishment of Shekou Industrial Zone, and Guangdong Provincial Party Committee Secretaries Xi Zhongxun and Wu Nansheng (Editor’s Note: Wu Nansheng, the first Party Secretary of Shenzhen Special Economic Zone) proposed to the central authorities to establish an export processing zone in Shantou (at first, their idea was to establish an export processing zone in Shantou. Why are you in Shantou? They quoted the classics as saying that Engels mentioned Shantou in his book. At the same time, Fujian also proposed to establish a special economic zone.

As a result of discussion in the Central Committee, everyone agreed in principle to establish a special zone. The key issues are the size of the special zone and the name of the area.

What’s the name of the special zone? At first, it was called export processing zone. Some people objected that "Taiwan Province has export processing zones, but we can’t have them." Finally, let Deng Xiaoping decide. Deng Xiaoping said: It can be called a special zone, and Shaanxi-Gansu-Ningxia is a special zone.

What is the area of the special zone? More than 300 square kilometers? The SAR Office of Guangdong Province thinks that this area is too large, and metaphorically says that "the special zones in the world are not as big as more than 300 square kilometers". Some people object: "This special zone is too big. Do you want a bigger special zone than the Shaanxi-Gansu-Ningxia Special Zone?" Some people even said, "It’s boundless." The sentence "infinitely big" was very serious at that time. It can be seen that many people are opposed to the establishment of a special zone with such a large area. In the end, the Central Committee decided to build a special zone, which is called a special economic zone, on the advice of Deng Xiaoping, and the Shenzhen Special Zone covers an area of 327 square kilometers.

In 1979, the Shenzhen Special Economic Zone was not established, but there was a local special economic zone regulation in Guangdong Province-Guangdong Special Economic Zone Regulation. After Guangdong reported to the Standing Committee of the National People’s Congress, the Standing Committee of the National People’s Congress passed this regulation on August 26th, 1980, which was the first local regulation in China history to be discussed and passed in the National People’s Congress Standing Committee (NPCSC). This historic regulation was aimed at the Shenzhen Special Economic Zone. So August 26th is the day when Shenzhen was founded, and it is also the day when Shenzhen Special Economic Zone was founded.

However, since its inception, Shenzhen has been facing the debate of "whether it is surnamed Zi or surnamed She".

The establishment of the special zone in 1980 was aimed at introducing foreign capital, so it would certainly lead to an ideological debate at that time. The practice of establishing the special zone would definitely conflict with the Marxist classical writers and the ideology of our ancestors, so we kept arguing.

In the situation that Shenzhen has just been established for one year, the central government has been somewhat shaken, including the top management, and proposed to make some adjustments in policies. At that time, Wu Nansheng, as the party secretary of Shenzhen, was under great pressure. In 1982 and 1983, there was a big discussion about Shenzhen in China. This discussion is very intense in the ideological circle and within the party. At that time, many people said, "Can you still see the shadow of socialism when you go to Shenzhen?" So at this time, it is even more necessary for Deng Xiaoping to really stand up and endorse Shenzhen, otherwise Shenzhen will face the risk of being shut down.

In January 1984, Deng Xiaoping visited Shenzhen and wrote the famous sentence: The development and experience of Shenzhen proved that our policy of establishing special economic zones was correct.

On January 26, 1984, Deng Xiaoping wrote an inscription for Shenzhen Special Economic Zone: "The development and experience of Shenzhen prove that our policy of establishing special economic zones is correct."

But in February 1985, Hong Kong’s Wide Angle Mirror magazine published an article by a young scholar, Chen Wenhong, "What’s the problem in Shenzhen? 》。 Chen Wenhong visited Shenzhen in 1985, that is, five years after the establishment of Shenzhen Special Economic Zone. He found that in fact, Shenzhen attracted not much foreign investment, but all the mainland capital, and all the mainland provinces had a lot of hot money in Shenzhen. He also calculated that the per capita purchasing power of Shenzhen was several times higher than that of Shanghai and Beijing to prove it.

Because everyone thinks that Shenzhen represents business opportunities and opportunities, you can make a lot of money by investing in Shenzhen. And mainland tourists also go to Shenzhen to buy things, because Shenzhen can buy things from Hong Kong.

Chen Wenhong wrote in the article: Shenzhen Special Economic Zone has not achieved the widely publicized development model of "focusing on industry, focusing on foreign investment and focusing on export". He accused Shenzhen’s prosperity of relying on "importing goods and materials to earn money in the domestic market". Although Chen Wenhong’s argument method has been questioned a lot, there are not a few people who hold similar views with him.

He calculated a simple account. In 1985, the total retail sales in Shenzhen divided by the population in Shenzhen was equal to the purchasing power of Shenzhen per capita. He calculated at that time that the purchasing power of Shenzhen per capita in 1984 was more than 4,000 yuan. At the same time, he calculated the per capita purchasing power of Beijing and Shanghai, which was only over 700 RMB, from which he concluded that the prosperity of Shenzhen depended on the purchasing power of the mainland. Therefore, he concluded that Shenzhen did not achieve the goal set when the SAR was established: it wanted to introduce foreign capital.

So his article once again caused a lot of controversy. Originally, Deng Xiaoping wrote this passage in 1984, so don’t argue any more. However, the article "What’s the Problem in Shenzhen" published by Chen Wenhong in 1985 once again pushed Shenzhen to the forefront and questioned the legitimacy and necessity of the establishment of Shenzhen Special Economic Zone again.

Until 1992, Deng Xiaoping went to Shenzhen to speak in the south. Only then did we see that Shenzhen was indeed developing along the direction envisaged in those years (export processing zone to attract foreign investment). What I saw in the early mid-1980s was that the mainland’s hot money wandered around there. By 1992, this phenomenon had been very rare. Shenzhen has truly become an export-oriented export processing zone.

In any case, Shenzhen is very successful among the four special economic zones. Today’s Shenzhen has become one of the four first-tier cities called "North to Guangzhou and Shenzhen". Now, Shenzhen’s GDP has surpassed that of Guangzhou, and its total GDP has exceeded 2.2 trillion. Now, Shenzhen has become the cradle of hard technology. A large number of entrepreneurs are willing to start a business in Shenzhen.

Now the Luohu port in Shenzhen.

When the escape from Hong Kong was the most serious, Vice Premier Gu Mu stood on the bank of Luohukou, Baoan County, and stood on the port bridge from Luohu to Hong Kong, saying, "I hope that one day, more people from there will come here." Today, the railway bridge at Luohu Port means that more Hong Kong people are going from Hong Kong to Shenzhen. At that time, the goal expected by Vice Premier Gu Mu has been achieved.

In 30 years, since 1980, great changes have really taken place in Shenzhen. I believe that in the late 1990s, the development model of Shenzhen has basically taken shape. Shenzhen has become an open and more market-oriented special economic zone. I believe that Shenzhen is more developed than many cities in the mainland, and Shenzhen’s economic development model is also a very important reason why it can dominate the high-tech industry now.

The Third Plenary Session of the Twelfth Central Committee in 1984: The focus of reform shifted from rural areas to cities.

When people were debating whether Shenzhen was a surname of capital or a surname of society, the Third Plenary Session of the 12th Central Committee was held in 1984, and the Decision of the Central Committee of the Communist Party of China on Economic System Reform was issued. In other words, when Shenzhen is engaged in construction in full swing, the economic system in most parts of our country is still in the era of planned economy.

In October 1984, the Third Plenary Session of the Twelfth Central Committee adopted the Central Committee of the Communist Party of China’s decision on economic system reform. Everyone is very surprised. Didn’t we start reform and opening up in 1978? But in fact, before 1984, our overall reform was in rural areas and agriculture. Only after the promulgation of the Decision on the Reform of the Socialist Economic System in 1984 (hereinafter referred to as the Decision) did the focus of economic reform shift to cities.

Deng Xiaoping spoke highly of this decision, saying that it was innovative to have something that our ancestors had never said. So what did the "Decision" in 1984 say that our ancestors didn’t say? The "commodity economy" was mentioned for the first time. At that time, we dared not mention the socialist market economy at all. In the Decision, we established that the goal of reform is to establish a socialist commodity economy, not a socialist market economy.

People who study Marxist political economy argue about "what is a commodity" all day. The corresponding product of the commodity. Market economy corresponds to commodity economy at that time, while planned economy corresponds to product economy at that time. Commodity economy is one step closer than product economy. So what is a commodity? It can be used as an exchange. Products cannot be exchanged, and only when they can be used for exchange can they become commodities. So at that time, the socialist commodity economy was written in the "Decision" of the Third Plenary Session of the Twelfth Central Committee. In Deng Xiaoping’s view, it was already something that the ancestors had not said. Perhaps Deng Xiaoping saw that it was not too far away from the market economy.

Therefore, since 1984, the reform in China has really started. Before 1984, the reform was spontaneous. After the "Decision" in 1984, we began to consciously and systematically promote the reform in the city.

However, when the "Decision" was issued, China’s economy experienced serious and growing inflation.

In the era of planned economy, there was no inflation. Because the price is set by the government. But in the era of planned economy, what will happen if demand exceeds supply? There will be people in need who have to wait in line. However, when the "Decision" was promulgated in 1984, in fact, the price was already somewhat loose. The government’s pricing on various items, including means of production and consumer goods, has begun to loosen. In other words, some phenomena that partially reflect the relationship between supply and demand have begun to appear in the market. As a result, inflation was out of control, and this phenomenon continued intermittently until 1987, which was slightly controlled in 1987 and rebounded in 1988. Therefore, when we issued the Decision of the Central Committee of the Communist Party of China on Economic System Reform, China’s economy has undergone a very interesting change. It is no longer a completely classic planned economy, and many factors of market exchange have begun to appear, which has pushed up the price.

In the mid-1980s, an East German economist visited Beijing. After listening to many introductions about China’s economic system reform, he said: "I think China’s reforms are all micro-reforms, and there is no macro-reform." He hinted that China did not pay attention to macro-stability in micro-reform.

As you can imagine, in the era of planned economy, demand is a serious shortage, demand is suppressed, and demand is a huge energy. Once it is left unchecked, prices will soar in the case of a serious shortage of supply. This explains why the government found that there was no way to control inflation at that time, because the economic policy at that time had no concept of macro-control.

When the Third Plenary Session of the Twelfth Central Committee proposed to promote the reform of urban economic system, we were already faced with the problem of macroeconomic instability. However, at that time, the decision on reform was still only microeconomic reform.

Throughout the 1980s, especially from 1984 to 1988, the most perplexing problem faced by the State Council was how to continue the reform of planned economy in cities when the macro economy was out of control and inflation pressure remained high.

Bashan Wheel Conference in 1985: the Starting Point of Macro-management

From September 2 to 8, 1985, more than 30 Chinese and foreign economists took a cruise ship "Bashan" from Wuhan to Chongqing, and held an "International Symposium on Macroeconomic Management" on the ship, which was later called "Bashan Wheel Conference". The oldest economist in China is Mr. Xue Muqiao, who was 81 years old. The youngest participant was Guo Shuqing, 29, who was still studying in China Academy of Social Sciences.

Group photo of all participants in Bashan Wheel Conference.

The importance of Bashan Round Meeting lies in that it made our reformers and economists understand the importance of macro-stability and macro-demand management for the first time, and also helped us better understand the importance of supporting reforms.

The Bashan Round Meeting was jointly organized by china society of economic reform, China Academy of Social Sciences and the World Bank. A total of seven or eight topics were discussed. The most important topic was: Why did inflation occur during the economic system reform? How to control inflation? What conditions does the reform need? How will macroeconomic imbalance affect reform? In what way should the reform be promoted?

James Tobin, the winner of the Nobel Prize in Economics in 1981, and Janos Kornai, a Hungarian economist, were invited to this meeting. There are also economists from Britain and Japan.

The picture on the left shows James Tobin, winner of the 1981 Nobel Prize in Economics, and the picture on the right shows Janos Kornai, a Hungarian economist.

At the meeting, james tobin explained why inflation appeared in the process of reform, because wages in China rose too fast. He pointed out that since the rate of price increase is equal to the nominal wage rate minus the labor productivity, if the labor productivity increases, the wages will rise with it, which will not lead to price increase. However, if the rising rate of labor productivity is lower than that of nominal wages, and wages are artificially high, then prices will definitely rise.

In view of the pressure of the expansion of consumer funds and rising wages faced by China at that time, he even suggested that this formula (price increase rate = nominal wage rate-labor productivity) should be written down and put in the office of every state-owned enterprise manager and president of state-owned bank, so that they can always bear in mind that nominal wages should follow labor productivity.

Colne had experienced partial economic reforms in Hungary, which made his speech focus on the more basic reform mode. That is to say, there will be several ways to transition from planned economy to market economy, which is more feasible. His analysis has a great influence on China economists. His book "Shortage Economics" made him famous in China.

The picture shows a group photo of four economists attending the Bashan Wheel Conference.Among them are famous economists Xue Muqiao (first from left, former Secretary-General of the Finance and Economics Committee of the State Council and Director of the Bureau of Private Enterprises, Director of the National Bureau of Statistics, Director of the National Price Committee, and Director-General of the the State Council Economic Research Center), Ma Hong (second from left, former President of the China Policy Science Research Association) and Wu Jinglian (first from right, famous economist, researcher of the the State Council Development Research Center, and a leading economist in China).

"Moganshan Conference" in 1984: Price Double Track Transition?

The emergence of inflation led to the Bashan Wheel Conference in 1985. However, the price increase is not only the product of price reform, but also affects the process of price reform in turn. In the early stage of reform, how should the price reform be promoted? How can we minimize the impact of price reform on the interests of all aspects of society? This is the most basic reform problem after the central government decided to shift the focus of reform from rural areas to cities in 1984.

But in fact, just two months before the Third Plenary Session of the Twelfth Central Committee of the Communist Party of China made a decision on economic system reform, that is, in September 1984, a meeting of young economists was held in Moganshan, Zhejiang Province, which was called "Moganshan Meeting" in history, and its full name was "Academic Seminar for Young and Middle-aged Economic Scientists". The conference was aimed at national essay writing, and received 1,300 contributions. Among them, 120 were selected and divided into seven groups. They stayed up all night to discuss the reform plan of how to transition from planned economy to market economy. It is said that the most heated discussion and debate is the price group. As time goes by, the Moganshan Conference is also famous all over the world because of the debate on price reform.

The meeting not only attracted young economists from all over the country to participate enthusiastically, but also the leaders of Zhejiang Province at that time gave speeches. Zhang Jinfu, the central leader from Beijing, went to Hangzhou specially to listen to the summary report of the Moganshan meeting, and the person who reported to Zhang Jinfu was Watson.

Zhang Jinfu, former member of the Standing Committee of the Central Committee of the Communist Party of China Advisory Committee and former State Councilor.

As a result, more than 20 years later, there was a famous debate between Watson and Zhang Weiying who also attended the Moganshan Conference, a debate about the right of invention, that is, who put forward the reform plan of the dual-track system price at the Moganshan Conference.

Zhang Weiying was a graduate student at Northwest University. Zhang Weiying said that this was his first time to fly from Xi ‘an to Hangzhou. This meeting is really the first time for many people.

This is a heated debate. Because I was writing that book about reform and opening up at that time, which was going to write "the reform of the two-track price system", both sides came to me to provide me with information. I remember one night when I was asleep, Zhang Weiying called me from Hong Kong. He seemed to be visiting the Chinese University of Hong Kong. He said, "Because you wrote this book, I’m going to copy a lot of original materials and send them." It’s very difficult for me to write this history, because I didn’t attend this meeting. I can only look at the memories of many people. At that time, there were many people involved in the discussion in the price group, some of whom later wrote reminiscence articles, and some participated in the debate between Watson and Zhang Weiying.

Zhang Weiying, co-founder of National Development Research Institute of Peking University (formerly China Economic Research Center of Peking University).

According to the information I have, the idea of price dual-track reform once appeared in Zhang Weiying’s article when he was studying at Northwest University, but it was not put forward at Moganshan Conference. According to the information provided by many people, at the Moganshan meeting, Zhang Weiying advocated "liberalizing the price", that is, "releasing the faction", while another faction, called "dispatching", advocated "adjusting the price and gradually reaching the designated position" instead of "liberalizing the price and reaching the designated position at one time". Watson seems to be a comprehensive school, that is, "the combination of adjustment and release", which is also a plan clearly suggested in the price report based on discussion. I guess that when Watson reports to Zhang Jinfu, he may report according to the idea of dual-track system.

Although the word "dual-track system" became the idea of price reform at the Moganshan meeting later, the word "dual-track system" was not invented by someone. Earlier, in 1982 and 1983, some important means of production, such as coal, had a double-track price phenomenon, otherwise there would be no inflation in China’s economy at that time. In other words, before the Moganshan Conference, the phenomenon of "price dual-track system" already existed.

However, the phenomenon of double-track price has really attracted the attention of economists, and many economists think that the double-track price system may be a feasible reform idea. After all, the risk of price liberalization at one time is too great, so it sounds reasonable to slowly adjust the planned price, and at the same time allow more excess output to be priced according to the relationship between supply and demand outside the plan, and gradually move towards the market price.

However, during the transition period, the dual-track price system means that "planned price" and "unplanned price" coexist. As you can imagine, according to such a dual-track reform, there will inevitably be a phenomenon of cross-track. Because the market price is high and the planned price is low, someone will definitely find a way to transfer the planned quota to the market, and there will be so-called collusion.

In 1985, a phenomenon appeared in China’s economy, which was called official defection, that is, the quota of official reselling plan. If you have connections, you go to the central ministries and commissions to approve a note, and you go to a steel factory to get 100 tons of steel at the planned price. Then, you buy a batch of steel at a low price with this note, and then sell it in the market at a market price higher than the planned price, and you gain huge benefits in the middle. In other words, connections and cops can bring you huge income. For a time, officials have become a corruption phenomenon that we are facing, and it has spread rapidly.

1986: the contest of reform plan

As a transitional way from planned price to market price, when many people discuss the advantages of the dual-track price system, economists such as Wu Jinglian oppose the idea of the dual-track price system. They are opposed to moving closer to the market price through the two-track method. They advocate "a basket of reforms". They believe that many factors in the economic system reform are interrelated, and you can’t just do part of the marketization. If you only do part of the market, it will definitely bring market chaos. At that time, an economic reform design office was established in the State Council, where the economists of the overall reformists were located.

They believe that this method of dual-track system not only leads to inflation, but also leads to corruption, official defection and rent-seeking. At that time, Professor Wu Jinglian and his research team wrote a lot of reports to the Central Committee, and convicted the two-track pricing system of eight crimes.

In the report, the "overall reformists" advocated that "a basket of reforms" should be promoted. In 1986, they submitted a report on the overall reform to the Central Committee, and then the State Council also held a meeting, which was also passed by the Central Committee. Regrettably, two months later, the "reform package" was shelved, so Wu Lao (Wu Jinglian) was deeply concerned about this matter. Wu Lao also mentioned this in his textbook Contemporary Economic Reform in China. Originally, the State Council planned to carry out reform according to this plan, but why did it go back on its word and give up later? I think, at that time, under the macroeconomic background of serious inflation, the "basket reform" plan was too risky. The State Council decided to suspend this reform plan, and instead decided to start the reform of enterprise ownership.

The picture shows the main representatives of the "overall reformist". From the right are: Zhou Xiaochuan (former governor of the People’s Bank of China), Li Jiange (chairman of China International Finance Corporation and former deputy director of the State Council Development Research Center), Lou Jiwei (former minister of finance and former deputy director of the State Council Development Research Center), Wu Jinglian (famous economist and researcher of the State Council Development Research Center), Wu Xiaoling (former vice president of the People’s Bank of China and former director of the State Administration of Foreign Exchange), Guo Shuqing (currently chairman of the Insurance Regulatory Commission of the Bank of China,

From 1984 to 1987, faced with severe inflation, policymakers dared not take risks, and finally decided to shift the focus of reform to enterprise reform, and carry out contract system and joint-stock system reform of state-owned enterprises.

The ownership reform of state-owned enterprises is obviously the direct result after the "basket reform" scheme was shelved, and then the debate turned to enterprise reform. At that time, an economist had been calling for enterprise reform. He has a famous saying that "if China’s economic reform fails, it must be because of price reform;" If it succeeds, it must be because of enterprise reform. " This man is Professor Li Yining from Peking University. Therefore, Li Yining also has a nickname called Li Shares. Because Li Yining advocated that state-owned enterprises should carry out ownership reform and implement joint-stock system.

At that time, the central government gave up the plan of "overall reform" of the economic system represented by Wu Jinglian, and turned to enterprise reform, which virtually supported the plan of joint-stock reform of state-owned enterprises in Li Yining. At that time, I saw a sentence in the article introducing Wu Lao on the China Academic Information Network, saying that he proposed many plans to the government, which were proved to be correct afterwards, but they were often not adopted by the central authorities. I think the most important scheme that has not been adopted is the "overall reform theory" and the later "price breakthrough" scheme.

wu jinglian(Left)And Li Yining.(right)　Both of them are famous economists and leading economists in China.

Wu Lao and Li Lao were born in the same month and studied in the same middle school. But for quite a long time from the late 1980s, the two of them didn’t face each other. Until 2008, when Peking University commemorated the 30th anniversary of China’s economic reform and opening-up, they were invited to participate in the commemorative activities together, and finally attended the ceremony on the same stage, face to face. Li Yining and Wu Jinglian are two representative economists who have made great contributions to the economic reform in China.

In the era of reform in the last century, economists participated in the process of reform in various ways. Everyone can say, "There is my contribution" and "There is my suggestion". Today, this phenomenon is almost impossible. That era was really romantic.

December 1978 Xiaogang Village’s "Fixed-output Household": Bottom-up Agricultural Reform

When it comes to agricultural reform, we should mention Xiaogang Village in Fengyang, Anhui Province, and Wan Li, the former chairman of the National People’s Congress.

When Wan Li was in charge of Anhui Province, a historic event happened in Xiaogang Village, Anhui Province. Eighteen farmers spontaneously carried out the secret action of "fixing production quotas to households" and made this famous contract. This is the winter of 1978.

The picture shows the written contract made by 18 villagers in Xiaogang Village in December, 1978 for the secret "production contract". There are 22 people on this list, including their wives and 18 people with fingerprints. Because it is stipulated in this agreement that if someone has an accident, others will raise their children until they are 18 years old, so this contract requires their wives to be present. The original handprint is kept in the Chinese History Museum, and a copy is kept in the museum in Xiaogang Village.

In November 1978, the 18 villagers in Xiaogang Village secretly discussed in Yan’s family that they would "fix the production quota to each household" and distribute the land to each family. It is risky to do this, and if it is leaked, it will lead to decapitation, so they pressed their handprints and promised to raise their children until they are 18 years old. This is a very tragic thing.

It is said that Wan Li, who was in charge of Anhui Province, knew about this matter, and Wan Li secretly sent people to Xiaogang Village to learn about the situation. Because the 18 farmers in Xiaogang Village worked for a year, the village next to them found that the village had an unexpected harvest, so they found that they secretly distributed the land to their families, so someone reported it to them. We can reasonably speculate that Wan Li knew about it at that time. However, Wan Li wisely called Deng Xiaoping to ask what to do. It is said that Deng Xiaoping’s reply was very simple, and he just did not say anything.

Wan Li thought that what Xiaogang Village did spontaneously was the right way, so he wrote a report to the Central Committee and got the support of Deng Xiaoping. Then, he wrote a report to the State Agriculture Committee and the Ministry of Agriculture, suggesting that the "household contract responsibility system" should be fully implemented, but the Ministry of Agriculture was very conservative. Wan Li was so upset. In 1980, Wan Li went to work in the Central Committee and served as the Deputy Prime Minister, in charge of agriculture. After working in the Central Committee for one year, starting from 1981, he proposed a comprehensive rectification of the Ministry of Agriculture to eliminate resistance.

During the discussion in the Central Committee, Wan Li and Hu Yaobang reached a consensus, advocating the promotion of "fixing production quotas to households" throughout the country. However, the resistance was particularly great, and there were great differences of opinion among the central decision-makers. The final decision was a compromise. The household contract responsibility system was implemented in different regions, not in developed regions, but only in particularly poor places, and everything in between also depends on the situation. Therefore, we can think that the household contract responsibility system was implemented "conditionally" at that time. However, Wan Li still thinks that farmers are eager to distribute their fields to their families.

At this time, Hu Yaobang stood on Wan Li’s side and gave Wan Li a lot of support. Despite great resistance, Wan Li and Hu Yaobang are still planning to draft a document to promote the household responsibility contract system.

In any case, Hu Yaobang and Wan Li are still actively promoting the "fixed production quotas" and finally persuaded the old comrades in the Central Committee. This formed the the Central Committee of the Communist Party of China No.1 Document in early 1982 (until now, this tradition continues, and the No.1 document issued by the Central Committee of the Communist Party of China every year must be about agriculture), agreeing to gradually promote the implementation of the household responsibility contract system nationwide.

In 1982, the entity of the people’s commune still existed. A year later, in 1983, the people’s commune was substantially disintegrated and the township government was established. In other words, the people’s commune was completely replaced by the township government in 1983. In fact, it was not completed until the end of 1984. Therefore, when the household contract responsibility system was implemented in 1982, the people’s commune was still there. But without the joint efforts of Hu Yaobang and Wan Li, it is estimated that this matter will drag on for a long time.

Unusual in 1978: the first year of reform

Because this year marks the 40th anniversary of reform and opening up, we must tell more about what happened in 1978. In November 1978, Xiaogang village in Anhui province spontaneously appeared the action of "fixing production to households"; In April 1978, the State Planning Commission and the Ministry of Foreign Trade sent a delegation from Hong Kong and Macao, which finally led to the establishment of Shekou Industrial Zone and the establishment of a dock connecting Hong Kong and Macao, and later further led to the establishment of four special economic zones. What is more worth mentioning is that 1978 was a year of going abroad. In that year, 13 leaders of the Central Committee at or above the deputy national level made 20 overseas inspections.

Where did Deng Xiaoping go in 1978? First, Deng Xiaoping went to Japan in October. He visited Panasonic, and the Japanese used microwave ovens to process food. He felt very strange after seeing it. It can be said that when he went abroad for inspection in 1978, he was stimulated a lot. He also took the Shinkansen and said a meaningful sentence: This speed is just right for us.

The picture above shows Deng Xiaoping visiting Japan in 1978 and taking the Shinkansen. The picture below shows the governor of California riding the China high-speed train in 2017. Forty years ago, when Deng Xiaoping took the Japanese Shinkansen, he was filled with emotion: "Just like pushing us to run, we really need to run now!" Forty years later, the governor of California, USA, issued a similar sigh while riding the China high-speed train.

Then he went to New Matai and met with Lee Kuan Yew, then President of Singapore. In Singapore, what impressed him most was Singapore’s utilization of foreign capital, which was also the reason why he insisted on the establishment of Shenzhen Special Zone and the introduction of foreign capital. In the plan of establishing Shenzhen Special Economic Zone, it has always been emphasized that overseas Chinese should be used to introduce investment. Why does Deng Xiaoping support such a plan? Because he saw successful experience and amazing economic achievements in Singapore. He believes that China must open up and make use of foreign capital.

At the same time, Gu Mu took a delegation to visit West Germany and wrote a very detailed report after he came back. All these things happened before November 1978. Shortly after Deng Xiaoping returned from Singapore, he held a 36-day democratic thought meeting. It is to prepare for the Third Plenary Session of the Eleventh Central Committee at the end of the year.

The Third Plenary Session of the Eleventh Central Committee was held in Beijing Jingxi Hotel from December 18 to 22, 1978. Before that, the Central Committee held a 36-day democratic life meeting at the suggestion of Deng Xiaoping. During the 36-day meeting, the leaders who went abroad will bring back many new ideas from abroad and share them with the comrades of the whole Party. More importantly, Deng Xiaoping and the then top leaders of the Central Committee have waged an ideological struggle on whether to give up the class struggle and shift the focus of the Party’s work to economic construction. In a sense, this 36-day democratic thought meeting is the real starting point of China’s reform and opening up.

The Democratic Thought Conference has made great achievements, that is, Deng Xiaoping’s closing speech at this conference, "Emancipate the mind, seek truth from facts, unite and look forward". If we read through the full text, we will find that this speech is very, very important. It was in this closing speech that Deng Xiaoping came up with the important idea that developing economy rather than class struggle is the first priority. The theme of the Third Plenary Session of the Eleventh Central Committee is actually to learn from Deng Xiaoping’s closing speech.

This historic change in the Party’s ideological line gave top priority to economic construction and bid farewell to the Cultural Revolution, which led to the romantic, rational and passionate years of reform in the 1980s.

(The above content is excerpted from Professor Zhang Jun’s speech entitled "Passionate Years-Economic Reform You Don’t Know" at the Starry Platform of Fudan University on April 19, 2018. The article was compiled by Wu Yiye, research assistant of the International School of Social Work, East China University of Science and Technology. )

Author Liu Yan

Editor Xin Ling

Toutu. com

After a wave of unrest, Gao Wei fell into a storm of public opinion again.

First, it was rumored that the consumer group was "indiscriminately laying off employees". After Gao Yan’s urgent rumor, it was rumored that some of its projects were "frequently looking for buyers", "selling a lot of assets" and "looking for a takeover man" … and then the market conveyed various speculations.

In response to the so-called "selling assets" in the market, Gao Yan responded to the entrepreneurial state and said: "International markets such as Coller Capital and TR Capital are all mature players in the S market. S-transactions are more often about the continuation of assets than the simple sale of assets. In the simplest way, the seller who sells the share is not a VC/PE institution, but a share transfer between LPs. Before and after the asset package transaction, the GP share remains unchanged. That is to say, the so-called’ high-selling assets’, in essence, the share transfer between high-selling LP is not high-selling assets.

At the same time, according to the entrepreneurial state, Gao Yan is also setting up a special S fund team. Gao Wei said: "S trading has two meanings for Gao Wei. On the one hand, it can serve our LP and help the existing LP to better grasp the exit rhythm. At the same time, we are also very optimistic about the investment opportunities in the S market. For the long-term optimistic areas, we can either invest in new shares or intervene in the S fund. We believe that S trading, as a new tool, has great market potential and promotes venture capital. "

Let’s not comment on the deep-seated reasons behind Gao Ling’s trading in S, but from the feedback of the market, do we really know S funds?

The answer may not be.

As far as the incident itself is concerned, "Gao Yi sets up S fund team" has been misunderstood by the market as "Gao Yi sells assets". The so-called "high-selling assets" in the market is actually the share transfer between high-selling "LP", which can make the old LP get liquidity and withdraw early, but high-selling is still the holder of assets, and its share of assets remains unchanged.

When Gao Ying set up the S fund, it appeared as a buyer in the S transaction, and they would buy fund shares, investment portfolios or investment commitments from other investors.

We can see that Gao Ling, as an important weather vane, has begun to focus on the hidden opportunities in S trading.

The fundamental reason why the market has misunderstood Gao Ling’s fund is that many people confuse the concepts of S fund and S trading, and think that S fund is only an exclusive game dominated by LP, and GP with operational problems will passively participate. Even most GPs deliberately stay away from the S fund, which seems to have the label of "disposal of non-performing assets", for the sake of brand protection.

In fact, S trading is a good tool to help GP "make money". More and more foreign GPs take the initiative to use S trading as a tool to solve the problems of raising funds, withdrawing, optimizing LP structure, asset management, adjusting investment strategy and withdrawing cash.

After more than 20 years’ development, this innovative financial instrument has entered a milestone development abroad. The landmark event is that in 2021, the GP-led S transaction exceeded the LP-led transaction scale for the first time, and it showed a sustained growth trend. According to the latest data of Jefferies in the United States, the transaction volume dominated by GP has increased from 35 billion dollars in 2020 to 68 billion dollars in 2021, accounting for more than half of the transaction volume in the S market, among which, the continuation fund (a model in S trading) accounts for the majority. This survey is also verified by Lazard’s data.

Foreign GP-led transactions surpassed LP-led transactions for the first time, accounting for half of the total trading volume in the S market (Source: Lazard).

However, in China, the vast majority of China GPs don’t realize the intrinsic value of S-trading. In most cases, GPs passively participate in S-trading when LP needs to withdraw, and the GP institutions that actively initiate trading are rare. As far as quantity is concerned, there are only a few domestic GP-led trading cases, such as IDG Capital, Kunzhong Capital, Huagai Capital-Shenzhen Venture Capital, Junlian Capital, Xiangfeng Fund and Puzzle Capital.

As a professional buyer, S fund managers generally believe that the risk coefficient of GP-led S trading is higher than that of LP-led S trading, but the return on investment is also significantly higher. This has also become one of the important reasons why the big buyers of foreign mature S funds represented by Kohler Capital actively participate in GP-led transactions.

What is GP-led s trading? When will it become mainstream in China? How can VC/PE managers use it to create more value?

S fund has been known to most GPs. As the market tends to be hot, 2020 is also called the first year of China S Fund. However, many people’s first impression of S fund still stays at the level of "taker" of non-performing assets.

Tracing back to 30 years ago, when S Fund was born abroad, it also had the derogatory color of "disposal of non-performing assets".

"In the beginning, S funds were only used when there were major problems in American funds. At that time, some big GPs would try to avoid having relations with S funds, so as not to be labeled as’ bad’. Now, more and more GPs are actively looking for S funds to cooperate, in order to create more income. At present, the awareness of S funds in the China market in the early stage of development is at most a neutral concept. " Yang Zhan, director of Kohler’s capital investment and general manager of Kohler (Beijing) Private Equity Fund Management Co., Ltd. introduced.

"The fund expires to find the next LP, just as it is common for a girl to find an object when she is older." Executive CEO Li Miao made an image metaphor. She believes that it is absolutely unnecessary for GP to avoid the normal behavior of selling assets or transferring shares.

"Generally, it is very good that 20% of the assets of US dollar funds can be withdrawn through IPO, and a large number of other assets need to be withdrawn through mergers and acquisitions, transfer, repurchase and liquidation." As an early group of S fund practitioners in China, Li Mingming, managing director of Xingnahe Capital, told Entrepreneurship.

"The market has a certain misunderstanding of the S fund. The S fund will not simply buy bad assets, but can look at the underlying assets through cycles and outlets and invest in valuable asset packages. And in general, the return on investment of S funds is higher than that of parent funds, even higher than that of some PE/VC funds, and J curve can be avoided to some extent. " Li Mingming thinks.

"In China, many VC/PE institutions and even the media often confuse the concept of S fund with S transaction, which leads many GPs to wonder whether they should find S fund to receive assets or do S fund, and even narrowly think that only S fund can help GP." Li Miao said.

The main difference between S fund and S transaction is that S fund is one of many participants in S transaction and a part of S market. S fund is a Secondary Fund, which specializes in investing in the private equity secondary market.

For example, there are Kohler Capital and TR Capital abroad, and there are Gefei S Fund, Nuelle S Fund, SIIC Shengshi S Fund (jointly established by Shengshi Investment and SIIC Group) and Shenzhen Venture Capital S Fund in China, which act as buyers in S transactions.

S transaction refers to the Secondary Transaction of private equity, which is commonly divided into two types: LP-led and GP-led.

Among various transaction types, GP and LP have achieved different requirements (source: Executive Middle School).

Most GPs in China are familiar with the LP-dominated trading mode, and most of them are the share transfer between LPs due to liquidity considerations. Because it is difficult to bring increment to the management scale of VC/PE funds, GPs generally have no driving force to actively cooperate with S trading links such as full adjustment and industrial and commercial changes.

What VC/PE in China ignores is that GP-led S transaction usually refers to a transaction in which GP takes the initiative to transfer one or more assets or fund shares to a new fund, and the new fund will continue to be managed by the existing GP or related parties. It is generally divided into various types, such as continuing fund, fund reorganization, late trading and tied trading.

After removing the misunderstanding of S-transaction and S-fund, we further analyze the value of GP-led S-transaction to VC/PE institutional managers.

For GP, what other "money-making" opportunities are implied in S trading?

Generally speaking, passive pressure and active interests are enough to drive more and more China GPs to actively participate in the private equity secondary market. This is Li Miao’s view.

As far as income is concerned, she learned that the income of investment institutions participating in S trading is considerable. "The first income from investing in S shares comes from discount income, but more income comes from the later appreciation of assets. We are familiar with S funds and financial institutions that have participated in the S market since 2021. "

For example, a fund restructuring transaction led by Kunzhong Capital, as the seller, created a 25% DPI for RMB funds. In addition, some investors revealed that the investment return performance of individual market-oriented S funds in China is better than that of mature foreign markets, and they are enjoying the early dividends in China’s S market.

However, the market dividend of S fund for LP share discount transfer will not last forever. "After a wave of market dividends in the downturn of the secondary market in 2018, the share of S in COVID-19 will be rapidly ignited in 2020, because the share of S can accelerate the cash return, reduce the risk of blind pools, and the discount rate will increase the return on income." As a parent fund practitioner for many years, Li Mingming, managing director of Xingnahe Capital, said.

After communicating with her peers, she basically reached a general consensus that the small LP share discount transfer has actually entered a relatively fierce level in China, and the "missing" behavior of buying and selling shares at low prices between LPs is difficult to last for a long time. In contrast, the complex S trading led by GP will gradually become a new trend.

"In the past two or three years, foreign GP-led transactions have gradually increased, and now it has accounted for half of S transactions, of which single assets have more transactions. The reason is not only related to the expiration of many foreign funds, but also because S trading has become one of the important exit paths for foreign M&A funds. Through S trading, M&A funds can retain assets for a longer period of time in order to obtain higher returns. " Kohler Capital Yang Zhan analyzes the differences between China and foreign countries.

Many people said that the two core pain points of fund-raising and withdrawal will force China GP to find more exit ways, and S-trading will gradually become an important supplement to various exit channels such as IPO, M&A and liquidation. This trend is basically consistent with the mature American market of private equity.

Although the multi-level capital markets such as Beijing Stock Exchange, Growth Enterprise Market registration system and science and technology innovation board can broaden the exit channels, the pressure of fund exit is still great, and a large number of funds are entering the liquidation period one after another, and the demand for fund late trading is great. "Looking back at the VC/PE industry in China, it experienced rapid development from 2015 to 2017, during which a large number of market-oriented funds were established with a term of 5-7 years. Now many funds have reached the liquidation period, and LP urgently needs liquidity. In addition, there are many funds that take money from the financial funds with a term of 10 years, and they have also come to the exit period one after another, and the enthusiasm of state-owned assets to participate in S-share trading is getting higher and higher. The stock market of domestic S transactions is very large, with a scale of more than 13 trillion yuan. " Huang Zhenlei, deputy general manager of Beijing Equity Exchange Center, told Entrepreneurship.

Why are "second-hand share" trading opportunities more active in the stock market era?

Kohler Capital Yang Zhan made an image metaphor: "The Beijing real estate market has entered the stock market, and the second-hand housing transactions are active, accounting for the vast majority of the total transaction volume, which is a bit like the reason that the private equity secondary market in China will gradually enter the stock market; The real estate market in Xiong’ an is just the opposite. The real estate development time is delayed in Beijing, and it is still in the era of first-hand housing transactions, and there will be no large-scale second-hand housing transactions for the time being. "

Yang Zhan is optimistic about the market potential of a large number of second-hand shares in China market. Kohler Capital, where he works, is the buyer of the private equity secondary market with the largest investment team in the world, and its investment strategy will also focus on the GP-led market.

Huang Zhenlei of Beijing Equity Exchange Center revealed to Entrepreneurship: "As the first pilot of S share transfer in China, the transaction volume of Beijing Equity Exchange Center has shown a substantial growth trend in the last two years. Last year, the transaction volume reached 1 billion, and it is expected to break through 10 billion yuan this year."

Then analyze the pressure of GP fundraising. Factors such as new asset management regulations, tight financial funds, and financial difficulties of listed companies lead to difficulties in LP’s capital contribution. The situation that LP’s subscribed capital contribution is not in place, LP requires DPI, and fund raising increases the pressure on GP to raise funds.

What is the root cause of the difficulty in raising funds for GP?

Li Miao has different perspectives: "Compared with other asset classes, private equity funds have a long cycle and high uncertainty of investment returns. The core reason is a serious shortage of liquidity. An illiquid asset is lifeless, and S trading can just solve the liquidity problem of private equity funds. Money is the smartest and will flow to assets that can generate returns, so now we can see that a larger amount of funds have entered the private equity secondary market. "

"Despite the existence of market demand and GP pain points, on the whole, the enthusiasm of domestic GPs to actively participate in S trading needs to be improved. Although they are interested in S trading, there are not many real participants. Compared with overseas developed markets, S trading in China market is still in the early stage, and the market space is very large. " Huang Zhenlei of Beijing Equity Exchange Center said.

Judging from the proportion of capital contribution, the main sellers in China S market may be finance, central enterprises, state-owned enterprises and financial institutions, but the buyer’s strength needs to be cultivated, the types of intermediary institutions need to be enriched, and the pricing mechanism for financial state-owned shares needs to be further improved. Judging from the transactions completed by Beijing Equity Exchange Center, although there are occasional packaged asset transactions and GP restructuring, the trading mode is relatively simple, and GP-coordinated LP share trading is still the mainstream.

"A core point is that when the assets invested by GP are really poor, it is not S trading that can solve the problems of withdrawal and fundraising, and the cart before the horse cannot be put". Li Miao reminds some players who want to participate in the transaction.

"Foreign fund managers and investors will use S trading as a tool to adjust their existing portfolios, just like buying stocks to adjust positions." Kohler Capital Yang Zhan said that the frequency of domestic players using S tools is obviously not high.

In addition, according to the observation of many domestic people, a new phenomenon has begun to appear in the China market. When some GPs encounter difficulties in fund-raising, they begin to use S trading tools and promise to sell some assets of new LP or past fund shares at low prices in exchange for the possibility of LP contributing to the new fund, so as to achieve the purpose of fund-raising. This practice of "tying up assets" belongs to bundled transactions.

"Although there are similar binding modes abroad, the thinking logic and original intention are different." Kohler Capital Yang Zhan reminds domestic players.

According to Li Miao, some FA will use Mingchi Continuation Fund when raising funds for GP. "this method is more suitable for new funds or GP that has just come out to raise funds and is being institutionalized. S tool can help GP create DPI performance. In addition, a single old stock and asset package transaction can also be used as a value exchange to create DPI for GP. With DPI, GP will make it easier for the new LP to see its historical performance and raise funds more conveniently. "

In fact, continuing fund and fund reorganization have become a new way of playing individual head GP in China in recent two years. "Asset restructuring seeks to withdraw, and generally packages a number of assets to speed up the withdrawal of funds and release more management energy of GP. It can also adjust investment strategies, turn to other track investments, and even actively optimize the LP structure and absorb institutionalized LP. In addition, you can also make a single project fund share transfer. " Huang Zhenlei of Beijing Equity Exchange Center said.

In China, the fund restructuring transaction known as the first RMB-to-US dollar fund in China is dominated by Kunzhong Capital.

In 2020, Kunzhong Capital packaged and sold seven projects to overseas entities set up by TR CAPITAL, creating a 25% DPI for RMB funds, and the transaction involved about 100 million US dollars. Through this S transaction, Kunzhong Capital completed the withdrawal of some RMB assets, and at the same time realized the raising of the first US dollar fund of Kunzhong Capital. Also completed the RMB-to-US-dollar fund restructuring transaction is Unconfused Capital, with the transaction scale exceeding 100 million US dollars. It can be seen that the GP-led S transaction can realize dual-currency conversion and solve the fundraising problem smoothly.

Kunzhong Capital Dollar Fund Reorganization Transaction Chart (Source: Guangchen Consultant "Ten Thousand Folds Must Be East")

Guangchen Consultant stated in "Ten Thousand Folds Must Go East" that Kunzhong Capital achieved a win-win situation among the three parties through this transaction. First of all, the original LP achieved considerable DPI through this transaction, which improved the overall cash performance of the fund in 2016; Secondly, the new LP has obtained the potential appreciation space of assets in the future; Thirdly, RMB LP helped GP upgrade to a dual-currency GP with more brand influence, paving the way for GP to enter the US dollar fund market for future financing.

In September, 2020, IDG led the completion of the S-fund restructuring transaction with NAV (Net Fund Share) exceeding USD 600 million, which became the largest publicly disclosed S-fund transaction in the history of China at that time.

This typical GP-led S-trade has injected a shot in the arm into the S-market. In the transaction, IDG packaged the portfolio of one of its RMB funds that has not been withdrawn into US dollar funds, involving more than 10 projects, and the buyer was a consortium led by Harbour Vest, an international parent fund management agency.

According to the observation of Entrepreneurship, the S transaction led by IDG capital is relatively active. At the beginning of this year, the largest single paid-in "QFLP+S" fund was established in Wuxi, which is also the first cross-border S fund of IDG to complete the payment.

Let’s look at the first publicly available large-scale RMB GP-led fund share restructuring transaction in China, with Huagai Capital as the leading party and Shenzhen Venture Capital S Fund participating as CO-GP.

The scale of this S fund is 800 million yuan. As the first RMB-structured reorganization and continuation fund in China, Huagai Capital has packaged many star projects such as Fuhong Hanlin. Through this continuation fund, Huagai Capital further enlarges the value of the portfolio, prolongs the holding period of star assets, and thus improves the return on investment.

In addition, Junlian Capital also completed a typical GP-led medical continuation fund transaction in 2021, with a transaction scale of US$ 270 million. Among them, one of the important buyers of the transaction is Kohler Capital. Prior to this, in February 2020, Junlian also completed a $200 million continuation fund transaction.

Junlian Capital’s $270 million medical and health continuation fund transaction chart (Source: Zhongzhong)

Vilen, managing director of Xingnahe Capital, suggested that GP should have strong resource control ability, and it is best to find a professional intermediary or professional buyer to cooperate. Generally, GP may find it difficult to copy the existing gameplay of other GPs.

As one of the earliest S-trading practitioners in China, vilen thinks that the current S-market in China may not be as lively as most people feel. After all, the S-market in China is in its early stage, and the professionalism of the buyers and sellers involved in the transaction is extremely high. "S-trading is highly complex, the trading process is complex, the water is deep and there are many pits, so participants need to be cautious, otherwise there will be many potential risks."

Finally, many senior people said that there will be special trading opportunities and market dividends when the secondary market is depressed. 2022 is undoubtedly a good opportunity for S fund buyers to buy excellent assets, but it is not necessarily a good time for GP to sell assets.

If you are right"s trading topic"Interested, welcome to add the author’s WeChat communication (ID: ID：i20130214).

This article is original for the entrepreneurial state and may not be reproduced without authorization, otherwise the entrepreneurial state will reserve the right to pursue legal responsibility against it. If you need to reprint or have any questions, please contact editor@cyzone.cn.

　　Cctv news Recently, with the theme of "improving the emergency response ability and keeping the bottom line of safety and stability", the second class of the 65th Middle School of the Party School of Zhengzhou Municipal Committee held a student forum on how to improve the emergency response ability of young and middle-aged cadres. During the activity, 15 students’ representatives exchanged speeches, and Deng Yunqi, director of the cadre planning office of the Organization Department of Zhengzhou Municipal Committee, made a summary comment.

　　At the forum, all the students spoke from different perspectives and fields closely around the theme, combining their work practice and learning experience. Students communicate from the practical level, explain their views from the industry field, express their views from the perspective of "learning from practice", and solve the problem of emergency response ability of young and middle-aged cadres with "understanding thinking".

　　The atmosphere at the forum was warm, and "flash" suggestions emerged one after another. The speeches included both theoretical explanations and case analysis. There are both problems and countermeasures; There are both experiences and lessons. Through this forum, the students exchanged ideas, enlightened their wisdom, tested the learning effect, and embodied the purpose of applying what they have learned to promote learning.

　　Deng Yunqi fully affirmed this student forum. He believes that the forum is well-prepared, well-organized, and has a strong atmosphere. All the students have made in-depth thinking based on their own job responsibilities and professional fields, and made speeches from different dimensions and perspectives. He expressed the hope that everyone will cherish the learning platform of the party school, take everything and every activity seriously, calm down, think deeply, discuss and communicate, improve their ability in all directions, lay a solid foundation for future work, and live up to the trust and cultivation of the organization.

In order to fully implement the strategy of strengthening the capital and further improve the training and selection mechanism of civil servants from the grassroots level, according to the Civil Service Law, the Provisions on the Transfer of Civil Servants, the Measures for the Public Selection of Civil Servants and other relevant laws and regulations, the relevant matters concerning the public selection of civil servants in Nanning directly under the authority in 2022 are hereby announced as follows.

I. Position

There are 22 people in 19 positions below the first-level chief clerk and other equivalent ranks. For specific job information, please refer to the Public Selection of Civil Servants in Nanning City, Guangxi Zhuang Autonomous Region in 2022 (annex, hereinafter referred to as the Public Selection of Civil Servants).

Second, the object and conditions

(1) Selection targets

The selection target is the on-the-job staff who have registered as civil servants in the organs below the county (city, district) in our city (including the civil service law management unit) (referring to the staff registration of the civil service law management unit, the same below). The above-mentioned target range includes staff who have withdrawn from the scope of reference management during the institutional reform, registered for reference management, approved to implement the transitional policy and are on the job.

(2) Qualifications

Applicants should meet the following qualifications:

1. Have a firm political stance and excellent political quality, strengthen the "four consciousnesses", strengthen the "four self-confidences" and achieve "two maintenance".

2 with good professional quality, good conduct, outstanding performance, recognized by the masses.

3. Bachelor degree or above.

4. Have grassroots work experience for more than 2 years. "grassroots work experience" refers to the party and government organs below the county level, village (community) party organizations or village (neighborhood) committees, as well as various enterprises and institutions (except those managed by referring to the Civil Service Law). The experience of demobilized military cadres working in military regiments and units below the equivalent regiments, and the experience of retired soldiers serving in active service in the army can be regarded as grassroots work experience.

5. Generally, you should have worked in the organ at the same level for more than 2 years (including probation period), and the time of secondment in the higher authorities cannot be counted.

Applicants should meet the minimum service life requirements for working in the organs at the same level. If there is no provision, they must work in the organs at the same level for more than 2 years.

Applicants who are members of the township leadership team must have worked in the township authorities for 5 years or have worked in the township (including the village) for 5 years and have served as members of the township leadership team for 3 years.

6. The annual assessment is not basically competent.

7. Have the working ability and qualifications required by the open selection of positions. Generally under the age of 35 (born after February 25, 1986, the same below).

8. Relevant work experience required for open selection of positions.

9. Have the physical conditions and psychological quality to perform their duties normally.

10. Other qualifications that meet the requirements of open selection of positions.

11 other conditions stipulated by laws, regulations, rules and policies.

One of the following circumstances, shall not participate in the selection:

1. Being expelled from the Communist Party of China (CPC) Party membership.

2. Being listed as the object of joint punishment for dishonesty according to law.

3. Suspected of violating discipline and law, being examined by relevant specialized agencies, and no conclusion has been reached.

4. Being influenced by admonition, organizational treatment or disciplinary action, etc., whose influence period has not expired or expired.

5. Newly hired township civil servants have worked in township organs for less than 5 years (including probation period).

6. In accordance with the relevant regulations, there are other restrictions on working in hard and remote areas and directional units without full service years or transfer.

For those who are hired by lowering the entry threshold and other preferential policies, they should serve for at least 5 years (including probation period) in the hard and remote county and township organs within the city area where they apply; Under five years, it is not allowed to openly select the higher authorities in this city and the organs in non-hardship and remote areas, nor to openly select the organs in other cities and other provinces (autonomous regions and municipalities directly under the Central Government) in the region (including those in hardship and remote areas).

7. Still in probation or promoted to leadership positions for less than 1 year.

8. Other circumstances stipulated by laws and regulations.

Applicants are not allowed to apply for the selection positions that constitute the circumstances listed in the first paragraph of Article 74 of the Civil Service Law, nor are they allowed to apply for the positions of the employing units where people who are husband and wife, lineal blood relatives, collateral blood relatives within three generations and close in-laws are leading members.

The calculation time of relevant qualifications involved in this selection, such as service years, probation period for leadership positions, punishment period, influence period, work experience, seniority and so on, takes February 25, 2022 as the deadline, and the years are accumulated according to full years.

Third, the registration procedure

(1) Job inquiry

Candidates can log on to the "Greentown party flag Red" Party Building Information Platform (www.nndj.gov.cn) and Guangxi Personnel Examination Network (www.gxpta.com.cn) to inquire about the positions and their qualifications through the published "Open Selection of Positions Schedule". The qualification examination unit shall be responsible for the interpretation of the professional, academic qualifications, work experience and other qualifications required by the position.

(2) Online registration and preliminary qualification examination

The public selection and registration is based on the combination of personal wishes and organizational recommendation. Registration and preliminary qualification examination are conducted in Guangxi Personnel Examination Network (www.gxpta.com.cn) without charge.

Applicants must log on to Guangxi Personnel Examination Network from 8:30 on February 25th to 18:00 on March 2nd, 2022, click on "Special Topics of Public Selection of Civil Servants in Cities with Districts in Guangxi Zhuang Autonomous Region in 2022" to enter the registration system, truthfully fill in and print the "Recommended Registration Form for Public Selection of Civil Servants in Guangxi Zhuang Autonomous Region in 2022" (hereinafter referred to as "Recommended Registration Form"), and obtain the consent of the appointment and removal organ (according to the cadre management authority) and affix the unit. The information in the Registration Recommendation Form must be true and accurate. Anyone who practices fraud will be disqualified from this selection. Those who fail to complete the registration steps within the specified time shall be deemed to have given up this registration. Candidates who apply for public selection shall not apply for positions higher than their positions (ranks). Each applicant is limited to one position.

The selection organ conducts the preliminary qualification examination according to the online registration information and the Registration Recommendation Form. If the preliminary qualification examination fails, the applicants can change to other positions before the deadline for registration. Applicants should pay attention to the results of qualification examination in time, and improve the application materials or change their positions in time according to the results of qualification examination. Because the application materials submitted by the applicants for online registration are untrue, incomplete or incorrectly filled in the registration information, the applicants will bear the responsibility for failing the qualification examination. Applicants who maliciously register the registration information and disturb the registration order will be dealt with according to the relevant provisions on violation of discipline and discipline in the recruitment of civil servants.

Qualification examination runs through the whole process of open selection. If it is found that the applicants do not meet the qualification requirements in each link, the employer may cancel their qualification for registration or selection; If the applicant meets the qualification conditions at the time of registration, and the applicant has worked in the organ at the same level for less than 2 years, is on probation or has been promoted to a leadership position for less than 1 year due to changes in his work unit or position after registration, his selection procedure will be terminated and he will no longer be selected as a candidate.

(3) the proportion of the examination.

In principle, the ratio of the number of people who pass the registration qualification examination to the number of people in the selection plan is not less than 3: 1 before the examination can be started. The positions that fail to reach the proportion of examination should be reduced from the selection plan to the prescribed proportion of examination; Cancellation of positions that have not been registered or the selection plan has not reached the proportion of the examination.

(4) Print the admission ticket

Applicants who have passed the qualification examination can log in to the registration system from 9:00 on March 22nd to 9:00 on May 31st, 2022, and download and print the admission ticket (A4 specification) by themselves.

Fourth, the exam

The exam is divided into written test and interview, with a score of 100 points each. The total score of the exam is scored by weight according to the written test and interview results. For details, please refer to the Open Selection Position Schedule.

(1) Written examination

The written test is organized by Nanning. The written test mainly tests the examinee’s policy and theoretical level, the ability to analyze and solve practical problems, and the ability to express words.

1. Time and place of written examination

Time: March 27th, 2022 (Sunday) from 9: 00 to 12: 00.

Venue: Nanning (see the admission ticket for the specific address).

Applicants must hold their valid identity cards and admission tickets to take the written test.

2. Written test results query

In late April, 2022, applicants can log on to Guangxi Personnel Examination Network to check their scores.

(2) Interview

1. Determine the interview candidates

According to the order from high score to low score of the written test scores of applicants for the same position, the selection organ determines the candidates who enter the interview scope according to the proportion of interview candidates specified in the Open Selection Position Schedule. When the last applicant in the proportion has tied the written test scores, it is also determined as the interview candidates. If the number of qualified people in the written test does not reach the required interview ratio, the interview will be conducted according to the actual number.

2. Interview qualification examination

Before the announcement of the interview, each selection organ shall conduct an interview qualification examination on the interviewee. Those who have not conducted the interview qualification examination or failed the interview qualification examination shall not be determined as interview candidates. If the qualification examination is unqualified or the interview qualification is abandoned, the interview candidates will be replenished and the interview qualification examination will be conducted in turn according to the written test qualified scores of the applicants for the same position from high to low.

After the announcement of the interview, if the interviewer gives up the interview qualification, the position will not be filled by the interviewer, and the interview will be conducted according to the actual number of people.

The materials for the interview qualification examination are: my valid resident identity card, academic degree certificate, relevant qualification certificates required for applying for the position, and the original materials such as the recommended registration form issued by the cadre appointment and removal authority.

3. The interview announcement was released

The interview announcement was released on the "Greentown party flag Red" Party Building Information Platform (www.nndj.gov.cn) one week before the interview.

4. Interview time and place

The selection organ determines the interview method and content according to the job requirements, with a full score of 100 and 60 as qualified, and the interview results will be announced on the day of the interview. See the interview announcement for the interview time and place.

V. Investigation and physical examination

The inspection and physical examination shall be the responsibility of the selection organ. The order of inspection and physical examination shall be determined by the selection organ according to the actual situation.

(a) to determine the candidates for inspection

According to the total score of the examination, the selection organ determines the candidates from high score to low score. If the interview results are unqualified, they shall not be listed as candidates for investigation. The selection adopts the method of difference inspection, and the number of candidates for inspection and selection plan is generally determined according to 2:1.

(2) inspection organization and implementation

The inspection work is organized and implemented by the selection organ according to the regulations, and the qualifications, morality, ability, diligence, performance and honesty of the inspected objects, as well as their political and professional qualities and the suitability of the selected positions are comprehensively investigated. Highlight political standards, focus on the study of political theory, system execution, performance ability, work performance and public recognition, in-depth study of political loyalty, political determination, political responsibility, political ability, political self-discipline, etc., and strengthen professional quality inspection. Strictly control politics, conduct, ability, style and integrity, and resolutely put an end to those who are unqualified in political quality, moral conduct, integrity and ability. According to the needs of the work, the selection organ can also increase short-term training and follow-up study to conduct extended inspection. For details, please refer to the Open Selection Position Schedule.

(3) Physical examination

The selection organ shall, according to the needs of the position, conduct a physical examination of the applicants. The cost of physical examination shall be borne by the selection organ.

Six, determine the object and publicity

(A) to determine the object

According to the investigation and job requirements, the selection organs collectively study and select the best candidates according to the cadre management authority and the principle of suitability for people and posts, and do not just choose people.

(2) publicity

The selected objects will be publicized on the "Greentown party flag Red" party building information platform (www.nndj.gov.cn) and the portal website of the unit, and the publicity period will be 5 working days. After the expiration of the publicity period, if there is no problem or the problem does not affect the post, the selection shall go through the formalities according to the relevant provisions of the transfer; To reflect the serious problems and check the evidence, cancel the selection qualification, after the cancellation, there are still qualified candidates through investigation, and the selection organ can collectively study and determine whether to make up for it, and report it to the Organization Department of the Municipal Party Committee for approval.

VII. Relevant requirements

(1) Applicants who voluntarily give up the qualification for selection shall submit it within 3 working days after the interview, and those who give up the qualification afterwards shall be recorded in the integrity file; If the information in the Registration Recommendation Form is fraudulent, it shall be recorded in the integrity file.

(two) the public selection of civil servants shall not be transferred from the selection organ within 2 years, and shall be reported to the Organization Department of the Municipal Party Committee for examination and approval.

(three) in violation of the discipline of the selection work, it shall be dealt with severely in accordance with the relevant provisions; If a crime is constituted, criminal responsibility shall be investigated according to law.

(four) the organization and implementation of the selection work must strictly implement the epidemic prevention and control measures in accordance with the latest requirements for the normalization of epidemic prevention and control in COVID-19.

Telephone number of qualification examination unit: See the Public Selection Position Schedule for details.

Examination consultation telephone: 0771-12333 transfer to the district level.

　　　　　　　0771-5624161

Policy consultation telephone: 0771-5539133

Attachment:Nanning, Guangxi Zhuang Autonomous Region, 2022 Public Selection of Civil Servants Position Schedule. xlsx

Nanning administration of civil service

February 24, 2022

Today I’m bringing you a domestic car. As for the outstanding performance of the car, please read it together.

Let’s take a look at the appearance of the tank 300 first. The whole front of the tank 300 looks very individual and sporty. Coupled with concise headlights, the shape is very young. The car is equipped with LED daytime running lights, front fog lights, automatic opening and closing, adaptive far and near light, delayed closing and so on. Come to the side of the car, the car body size is 4760MM*1930MM*1903MM, the car uses domineering lines, the car body looks very cold, with large-sized thick-walled tires, it looks full of movement. In the rear part, the overall shape of the rear part echoes the front face, and the taillights are very angular. Coupled with the unique exhaust pipe, it is still relatively soft overall.

Coming into the car, the interior design of Tank 300 is very young and has a good visual effect. The steering wheel of the car is well designed, equipped with the functions of manual steering wheel up and down+front and rear adjustment, steering wheel heating and so on, which looks a little more atmospheric. Take a look at the central control, with a 12.3-inch touch-sensitive LCD central control screen, which makes the interior style impressive and the details are still in place. The dashboard and seats also give people a good feeling. Let’s take a look. The car is equipped with a domineering dashboard, and the sports atmosphere is relatively in place. The car uses leather seats, which are wrapped in place and the overall comfort is acceptable.

The car is equipped with car networking, driving mode selection, remote control key, Bluetooth key, rear wiper, interior atmosphere light and other configurations, and the configuration performance is relatively good, which improves the convenience of drivers to some extent.

This car has been introduced almost before, and I believe many users who buy a car have taken a fancy to its comfort and practicality. If you are excited, you may wish to go offline and actually feel it.

　　"Boss, do you have a cigarette card here?" After the National Day, the staff of the Supervision Committee of the Commission for Discipline Inspection of Changzhou City, Jiangsu Province came to a tobacco and liquor store in Lucheng Street for an unannounced visit.

　　"I used to, but now I don’t." The shop assistant pointed to the "proposal for refusing to sell cigarette cards" and the "promise not to sell cigarette cards and accept social supervision" signs posted in the eye-catching position in the store and said, "It is not allowed to sell."

　　This is the result of Changzhou’s special rectification from the tobacco card corruption cases investigated before. Things have to start from last year. The Supervision Committee of the Changzhou Municipal Commission for Discipline Inspection took lien measures against Gu Moumou, the former secretary of the Party Working Committee of the High-tech Zone. Among them, the confession about the cigarette card caught the attention of the case handlers: "From 2005 to 2018, before the Spring Festival every year, Wan Moumou will give me 200,000 yuan in cash or a cigarette card worth 200 cigarettes."

　　According to Gu Moumou, because of the strict management in recent years and the hidden cigarette cards, after 2015, Wan Moumou changed from sending cash to sending cigarette cards. Each of these cigarette cards indicated the variety and quantity of cigarettes. Since the cigarette card can be converted into cash, Gu Moumou did not get the cigarette but directly converted it into cash. In August this year, Gu Moumou was sentenced to 10 years in prison for accepting bribes. Among the money obtained from accepting bribes, cigarette cards totaled more than 490,000 yuan.

　　According to statistics, Changzhou investigated and dealt with 41 cases involving tobacco card corruption last year, all of which involved tobacco card corruption. In the first year of this year, the Supervision Committee of Changzhou Municipal Commission for Discipline Inspection took the lead in organizing self-examination, self-correction, cross-examination and unannounced visits on the issue of illegal receipt and delivery of cigarettes (cards) by various departments (units) at all levels and cadres in party member. A total of 273 cigarette cards were handed in by 72 cadres from 29 units, and 1,296,300 yuan of illegal funds were returned.

　　In order to solve this problem from the source, the Supervision Committee of Changzhou Commission for Discipline Inspection keeps a close eye on the main responsible departments such as market supervision and management, tobacco monopoly, etc., and innovatively uses the working mechanism of "five orders and five transformations". By formulating task lists, listing assignment lists, issuing notices, filling in feedback lists, and issuing suggestions, the supervision content is projectized, the supervision subject is clear, the supervision matters are precise, the supervision quality is scientific, and the supervision results are long-lasting.

　　In the shopping malls, supermarkets and tobacco hotels with tobacco retail monopoly licenses in Changzhou, the reporter saw the posted "Proposal on Special Rectification of Illegal Selling and Over-quota Selling of Tobacco Cards in Tobacco Hotels" and "Promise not to sell tobacco cards and accept social supervision" signs. At the urging of the discipline inspection and supervision organs at all levels, the regulatory authorities have also established files for these market sales subjects. Changzhou Tobacco Monopoly Bureau has promulgated the Administrative Measures for Stopping the Supply of Illegal Selling of Cigarette Cards, which will punish those who break their promises and violate the rules for one month. If the situation is serious, the cigarette business qualification will be cancelled, and the administrative punishment information will be pushed to the Municipal Credit Office for joint punishment.

　　According to reports, through a period of rectification, tobacco card management has achieved initial results. At the same time, the "five orders and five transformations" working mechanism formed by tobacco card governance has also effectively promoted the rectification of the special struggle against evil and the feedback of environmental supervision.

　　People’s Daily (19th edition, November 19, 2019)

"Three-color awning, how to spell it?" and "Three-color awning protects you from the wind and rain", these topics have quickly triggered extensive discussions recently. Three-color poncho has also become the most popular color at present, and our fans have mentioned it many times in the comment area. As the fuse of the incident, behind the tri-color canopy is actually a rights protection incident caused by water leakage of Mercedes-Benz owners in Maibakh. Although the incident itself is unfortunate, it urges us to rethink how to better serve car owners.

As a brand with a history of one hundred years, Mercedes-Benz originated in Stuttgart, Germany, and is famous for its excellent technology and design. It can also be said that it is the ancestor of the automobile industry. In any case, this kind of emergency is obviously what we don’t want to see.

However, for us in the automobile industry, the incident itself should not be the focus, but we should pay attention to how to avoid similar problems from happening again.

LUMMA G780 Gluck, which is customized and upgraded based on 450, was just launched in September this year. While continuing the elegant design of Mercedes-Benz, it incorporates more personalized customization elements. We pay attention to the needs of every car owner, providing high-grade NAPPA leather seats, unique interior decoration and top-level sound system, so that every trip is full of luxury and comfort. Through stricter quality control and better after-sales service, every car owner can enjoy the luxury driving experience with peace of mind.

This incident reminds us that it is very important to maintain communication and trust, whether it is the brand or the car owner. LUMMA promises to always listen to the voice of customers. Whether it is pre-sales consultation or after-sales service, we will make the most comprehensive preparations to ensure that the rights and interests of all car owners can be fully guaranteed.

Choosing LUMMA is not only a choice of a car, but also a noble lifestyle. Let’s focus on the future, work together to avoid similar incidents and create a safe and pleasant driving environment for every car owner.

Choice: or? Now, the purchase of engine oil has become an important issue. Many car owners are confused when faced with all kinds of engine oil products. Among them, synthetic engine oil and synthetic engine oil are two common types of engine oil, and many car owners also want to know which one is better. This article will analyze the differences and characteristics of these two oils in detail and help you make the right choice. First of all, let’s understand the definitions of these two kinds of engine oils: synthetic engine oil refers to the engine oil prepared by synthetic method, while all synthetic engine oil refers to the engine oil blended with fully synthetic base oil. Compared with mineral engine oil, these two kinds of engine oils have higher performance and longer service life. So, which engine oil is better? Let’s analyze their advantages and disadvantages. The advantage of synthetic engine oil is that it has good high temperature resistance and oxidation resistance, which can effectively protect and prolong its service life.

In addition, synthetic engine oil has a high viscosity index, which can keep the viscosity stable in a wide temperature range, thus providing better lubrication effect for the engine. However, due to its relatively high price, not all car owners can accept it. Synthetic engine oil has better durability and fuel economy. Because it is made of synthetic base oil, it has better oxidation stability and high temperature performance. When the engine runs at high temperature for a long time, synthetic engine oil can better protect the engine. In addition, synthetic engine oil has a lower viscosity, which can reduce the friction loss of the engine, thus improving fuel economy. However, the price in synthetic engine oil is relatively high, which is not suitable for all car owners. On the whole, whether to choose synthetic engine oil or synthetic engine oil should be decided according to your vehicle and driving habits.

If you are driving a luxury car or car, and often drive in high temperature environment for a long time, then synthetic engine oil may be a better choice. Because this type of vehicle needs better lubrication and protection to keep the engine running normally. At the same time, if you pay attention to fuel economy and want to extend the service life of the engine, then synthetic engine oil is also a good choice. However, if you are driving an economical car or commercial vehicle and the driving environment is relatively good, then synthetic engine oil may be more suitable for you. There are other factors to consider when making a choice. The first is the viscosity selection of engine oil. The higher the viscosity, the worse the fluidity at low temperature, while the lower the viscosity, the worse the lubricity at high temperature. Therefore, when choosing engine oil, you should choose the viscosity grade suitable for your vehicle type and use environment. Secondly, the brand choice of engine oil.

Choosing famous brand engine oil can not only ensure the quality and performance of engine oil, but also get better after-sales service. In a word, whether to choose synthetic engine oil or synthetic engine oil should be decided according to your vehicle and driving habits. In the selection, factors such as performance, price, viscosity grade and brand of engine oil need to be considered. I hope this article can help you make the right choice. Finally, ask a question: Do you choose synthetic engine oil or all of synthetic engine oil? Why? Synthetic engine oil and synthetic engine oil are two common types of engine oil on the market. But you may be confused when choosing which oil is suitable for your vehicle. This article will discuss the characteristics and scope of application of synthetic engine oil and synthetic engine oil to help you make a wise choice. First of all, let’s understand the differences between synthetic engine oil and synthetic engine oil.

All-synthetic engine oil is manufactured by artificial synthesis, and its molecular structure is very uniform, with excellent lubrication performance and thermal stability. Synthetic engine oil is made by mixing it with synthetic base oil, and its performance is between mineral oil and all of synthetic engine oil. So, what kind of vehicles are suitable for use in synthetic engine oil? The performance requirements of synthetic engine oil are relatively high, which is suitable for high-performance engines and vehicles requiring higher lubrication performance. If you own a sports car or often drive at high speed, then all of synthetic engine oil will be a good choice. It can provide better lubrication and protection, reduce friction and wear, and prolong engine life. For general family cars, synthetic engine oil may be more suitable. This type of vehicle has relatively low performance requirements for engine oil, and the price in synthetic engine oil is relatively low, which can better meet your budget requirements.

Synthetic engine oil still has good lubricity and oxidation resistance, which can effectively protect the engine and prolong the oil change cycle. Of course, whether you choose synthetic engine oil or synthetic engine oil should be decided according to your vehicle type and driving habits. If your vehicle has high performance and often drives with high load, then synthetic engine oil may be more suitable. And if your vehicle is mainly used for daily commuting or long-distance travel, then synthetic engine oil may be a more economical choice. In addition to choosing engine oil type, we should also pay attention to choosing regular channels to buy reliable engine oil products. There are many fake and shoddy engine oil products on the market, and their quality cannot be guaranteed, which is likely to cause damage to the engine. Therefore, when buying engine oil, it is recommended to choose a brand with credibility and reputation, and ensure that the product has relevant certification marks. In a word, it is very important to choose the oil type suitable for your vehicle.

All of synthetic engine oil and synthetic engine oil have their own advantages and scope of application. Make a wise choice according to your vehicle type and driving habits. At the same time, remember to choose regular channels to buy reliable oil products to ensure that your vehicle is fully lubricated and protected. Do you know the difference between synthetic engine oil and synthetic engine oil? Do you have any questions or other suggestions about choosing engine oil? Welcome to share your thoughts with us in the comments.

Not afraid of Mercedes-Benz and Land Rover, afraid of citizens using letters. This sentence was not very popular at first, but because it was madly transmitted on the Internet. Let the public be on fire in the minds of consumers. Some people will ask: Is it expensive to buy a 2020 Volkswagen with 230,000 yuan? What is the cost performance? Is it worth buying?

In fact, in terms of appearance and interior, it is not much different from the old model. There is a letter "MADOTAN" under the tail label. Does it feel particularly advanced? If you don’t look carefully at first, you will think he is.

In fact, compared with the 2019 model, the 2020 model of Volkswagen 330 has advanced configurations such as reversing image, inductive trunk, keyless entry, front seat heating, 8-inch display, automatic headlights, rain sensor wiper and three-zone automatic air conditioning.

At the same time, the brand-new appearance has also changed. The main change is that there are "letters" under the logo at the rear of the car, and there is a little detail. The wheels of the 2020 leading version have been changed to the original high-profile style, and the new car only looks at the wheels, giving people the impression that this is a luxury car, which is completely different from the low-profile configuration.

Volkswagen is comfortable in driving sense, and most of the mass areas have excellent shock absorption effect, and the adjustment is also biased towards high-speed stability. Even if it is simplified now, the sound insulation effect and high-speed stability are very good.

In terms of interior decoration. Although it seems easier to start, it is easier to change the top one. The brakes and throttle are very sensitive, and the steering is also very accurate, and the turning radius is also very small, so you can experience what real stability is during high-speed driving.

In terms of seats, the seats are very wide, and the overall matching is relatively good. Generally, drivers will feel very tired when driving long distances. However, when driving long distances, the seat setting of this car makes people feel very comfortable, and the support rods are particularly good.

In terms of central control, the central control display screen has become larger, the 8-inch screen has also added the technical function of car networking, and the deluxe version has added a large-inch LCD dashboard, but the leading version of the entry has not.

Configuration. In fact, if it’s just for home, commuting and occasionally running long distances, the 2020 330 leading edition is actually enough. In terms of configuration, there are anti-lock ABS, brake force distribution EBD/CBC, brake assist BA/EBA, traction control ARS/TCS, body stability control ESP/DSC, etc.

The LED headlamp also has its own automatic switch, the external rearview mirror is electrically adjusted and heated, the internal rearview mirror is automatically anti-glare, and it is sensed as a wiper. So if it is just a small family car, then this 330 leading version is still very cost-effective.

In terms of power and price

The new body size is 4865/1832/1471mm, and the wheelbase is 2871 mm. There is not much difference in size between the old and new models, and there is basically no difference. You can sit in the front row space. The space in the trunk is 533L, so there is a lot of space (380 is only 480L).

In terms of power, the 330T version uses a 2.0T inline four-cylinder turbocharged low-power engine. Among them, the maximum horsepower is 186PS, the maximum power is 137KW, the maximum torque is 320 N, m, and the maximum torque speed is 1500-4000rpm, which matches the speed of 7-speed dual clutch (the same as the old model). During the 100-kilometer acceleration time, some netizens also tested in 8.3S, so the power is very tough.

In terms of fuel consumption, some consumers have experienced it: 3500 kilometers, the average fuel consumption is 8.6L, so the fuel consumption can only be said to be average, which is higher than your "love Nissan Sanjie", but it is more powerful in power.

The official price of the 2020 330 leading edition is 219,900, and the actual discount of the terminal is 25,000 (still because the automobile industry is not easy to handle in the popular period). The actual naked car is 194,900 yuan, and the purchase tax is 17,248 yuan. It seems that insurance must be bought in the store, so it is more expensive. The total cost is 8,032 yuan, and the total cost of things is about 185 yuan. So after all the shopping, it’s about 220 thousand.

Easy car number author provides articles.

There are many choices of cars now, as we said today. Let’s take you to appreciate its style.

Let’s take a look at the appearance of the Warrior 917. The front of the Warrior 917 is cold and looks very simple and generous. The headlights are very in line with the aesthetics of consumers, and they are a little more domineering and stylish. The car is equipped with LED daytime running lights, front fog lights, automatic opening and closing, adaptive far and near light and so on. Come to the car side, the car body size is 4987MM*2080MM*1935MM, the car uses steady lines, and the car side feels very young and fashionable, with large-sized thick-walled tires, and smooth lines run through the whole car side. Looking back, the rear of the car looks angular, the taillights show a young and individual design style, and the overall layout is impressive.

Coming into the Warrior 917 car, the interior of Warrior 917 enhances the visual sense of solidity and easily touches the hearts of young consumers. The steering wheel of the car is well designed, equipped with electric up and down+front and rear adjustment, steering wheel memory and other functions, and the palm fit is very high. From the central control point of view, with the 15.6-inch touch-sensitive LCD central control screen, the interior style is impressive and looks quite cold. The dashboard and seats give people a good feeling, too. Let’s take a look. The car is equipped with a cold dashboard, which gives people a very simple feeling. The car uses leather seats, which are wrapped in place and are very comfortable to ride.

The Warrior 917 is matched with an automatic (AT) gearbox, with an acceleration time of 4.2s per 100 kilometers, and the power is completely OK for daily use.

In terms of functional configuration, the Warriors 917 is equipped with car networking, driving mode selection, remote control key, Bluetooth key, rear wiper, traction control (ASR/TCS, etc.) and other configurations.

This class of cars is usually the first choice for most people. First of all, the price is not expensive, and secondly, all the configurations are quite complete, which is still very worth starting with. Today, you can go to the 4S shop to experience this car.