The Self-regulation Ability of China's Economic Can't be Discounted

In the past we always worry about the policy can not remove the production capacity, and overcapacity long-term suppression the growth of economic. Shinestar Group believes that from the view of operation, it is optimistic, because many industries have been over through the power of the market to get a clear market, which allows us to have confidence in the future economy.

As a supplier of spiral pipe, spiral steel pipe, 3pe anticorrosive spiral pipe, large diameter spiral pipe, double-sided submerged arc spiral welded pipe, open flat and other products, Shinestar Group think that achieved good result in the past year, which makes the whole enterprise, the entire industry are full of fighting spirit and momentum.

However, there are some deviations: from the view of production capacity, overcapacity is a global problem, also for production capacity, but in 2016, China face the situation that the global nature of production and administrative to the production capacity of two factors together, resulting in a relatively large degree of administrative intervention in the industry has increase in prices, such as coal and steel prices.

From the view of leverage, we have experienced several rounds of leverage after 2012, most of the asset bubble to the last tragic market, the whole society ended with big pay. For example, in 2013, we saw the against non-standard business to force commercial banks to adjust the balance sheet, which leads to the money shortage. 2014 stock market start of the main board, in 2015 to clean up the capital to the lever to become the June issue of the fuse line. Bond market has not yet completed, we have already seen the end of 2016 bond market has been the outbreak of a drastic adjustment, we named it as the volatility, the volatility may happen again in 2017, the financial leverage still not finish, the bond market Of volatility will be unavoidable.

From the view of cost reduction, the cost of business income per hundred dollars from a single year to see a certain degree of decline in revenue,it is per hundred dollars reduced two cents in cost. Our corporate burden is not only tax and fees, but also includes some system costs, and academic institutions to calculate the macro tax burden is not high, but the actual burden of the enterprise is very heavy. In the situation of economic downturn and corporate earnings deterioration, if the cost of taxes and fees have not been effectively mitigated, it will a heavy pressure on the enterprise. From the micro-research point of view, there are some companies the burden increasing, some companies have to leave the market, but this situation is still continue, so the cost of this situation and the original policy design is deviated from the original intention.

The production capacity at 2016 is global, the performance of Chinese enterprises is particularly prominent, the Chinese economy's self-regulation ability can not be discounted. The future, Shinestar Group will take the development opportunities, and constantly upgrade themselves to produce more high-quality spiral pipe, spiral steel pipe, scaffolding prop, large diameter spiral pipe, double-sided submerged arc spiral welded pipe, open flat and other products to develop China's economy.