Home » Analysis: The CCP proposes “three distributions” and the storm of wealth equalization is coming | Xi Jinping | Capital Markets | Antitrust

Analysis: The CCP proposes “three distributions” and the storm of wealth equalization is coming | Xi Jinping | Capital Markets | Antitrust

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[Epoch Times August 18, 2021](Interview by Epoch Times reporter He Shanru) On August 17, Xi Jinping hosted the tenth meeting of the Central Finance and Economics Committee with the theme of “Promoting Common Prosperity.” In the official press release, some of these words immediately aroused people’s attention.

The press release said, “Correctly handle the relationship between efficiency and fairness, build basic arrangements for the coordination of primary distribution, redistribution, and three-time distribution, increase taxation, social security, and transfer payments, etc., and increase precision, and expand the proportion of middle-income groups. , Increase the income of low-income groups, rationally regulate high income, ban illegal income, and form an olive-shaped distribution structure with a large middle and a small two ends.”

The so-called “three-time distribution” of income, which appeared in the Chinese Communist Party’s documents for the first time in 2019, has triggered a fever on the Internet. According to the analysis of mainland scholars, adjusting the income of high-income groups to increase the incomes of low-income groups means that “even rich and poor” is coming soon, and capitalists should pay attention!

The capital market is billowing, scholars: legislation should go first

Zhao Jun (pseudonym), a mainland economist and a senior researcher at a retired institutional reform research institution, said that this conference document can be said to explain the recent billowing clouds in the capital market——

Meituan and Alibaba are investigated, education and training institutions are named

On April 26 this year, Meituan announced that it was under an antitrust investigation by the authorities. Since then, the stock price has fallen all the way. By May 10, the stock price has fallen 44% from the highest price this year.

Prior to Meituan, Alibaba had been accused of antitrust since December last year, and was fined a huge 18.2 billion yuan in April this year.

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Since February, the CCP has introduced new policies for education and training institutions, which have caused the overseas stocks of these companies to plummet; a series of measures issued at the end of July have caused their stock prices to plummet further, and even led to a collective decline in US-listed Chinese concept stocks. .

Online games and e-cigarettes are criticized

On August 2, a number of Chinese state media criticized online games as affecting the healthy growth of young people and classified online games as spiritual opium. Tencent’s popular game “Glory of the King” was named. Tencent and other game stocks plummeted in the domestic and foreign stock markets that day.

On August 4, Xinhua News Agency published the article “Beware of the flow of e-cigarettes to minors”, which caused a sharp drop in the prices of U.S. stocks Wuxin Technology and e-cigarette stocks listed on A-shares and Hong Kong stocks the next day.

SOHO China acquisition case investigated

Just as people were marveling at the rhythm that was hitting every day, on August 6, the CCP’s Market Supervision Bureau filed a case to investigate Pan Shiyi’s SOHO China. Experts believe that this is a step in the normal approval process for the Blackstone Group’s acquisition of SOHO China. If there are no problems with the investigation results, the acquisition will be passed. However, netizens are still excitedly shouting “Heavy investigation is here! Pan Shiyi can’t run anymore”!

“These government actions, anti-monopoly, reducing the burden on students and parents, rectifying the impact of games on young people, and pointing out the harm of e-cigarettes to minors, what does it have to do with today’s meeting?” Zhao Jun answered questions from reporters Dao: “Anti-monopoly said otherwise. Other problems exist, and they are all problems that the government wants to solve. However, this is not a normal solution.”

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“How is the double reduction formed? Before the introduction of the education industrialization policy, why was there no systematic demonstration and public discussion to prevent serious problems? The same is true for the problems of games and e-cigarettes. Before the company raised capital, the government where?”

Zhao Jun said, “Enterprises are unhindered before they get capital investment and even go public. After they have been listed, the government issued a document denying the company. Institutional investors and retail investors have all suffered losses. Once the governance is damaged, it will be destroyed.”

“Furthermore, these problems should be resolved in accordance with laws and regulations, rather than by government-guided public opinion. This is not the way to govern a market economy.” Zhao Jun further pointed out, “The authorities are not ignorant of these problems. The economic reforms have been carried out for so many years. Who doesn’t understand? But if we don’t use public opinion to lead, we will not achieve the goal of today’s meeting: administrative intervention to achieve even the rich and the poor or the barbaric even the rich and the poor.”

“It is of course good to solve the problem of the divide between the rich and the poor. However, to do good things should also be legislation. The legislative process, the chief can not wait, so they use effective administrative brutal methods. You see, including anti-monopoly, this With the wave of beatings, the capitalists were very obedient, and they all expressed that they would study Xi Jinping’s essays and begin to study the adjustment of the investment direction to the direction required by the leadership, such as high-tech industry, renewable energy, and so on.”

Li Yining’s “Third Distribution” Emphasizes Volunteering

The reporter understood that the “third distribution” was proposed by economist Li Yining. The first distribution refers to the distribution of wages, profits, etc., carried out by the market in accordance with the principle of efficiency; the second distribution is the redistribution carried out by the government taking into account the principles of fairness and efficiency, focusing on the principle of fairness, and through taxation, social security expenditures, etc. , Is to collect taxes from high-income earners for social security for low-income earners; the third distribution refers to the distribution of wealth from the rich to the low-income groups based on moral strength through voluntary personal donations.

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In response, the reporter asked Zhao Jun: “How likely is the third distribution?”

Zhao Jun pointed out a key point: “The donation proposed by Li Yining is voluntary, and non-governmental discussions are also based on voluntary and independent charitable behavior. General studies believe that such charity is efficient and can be implemented in practice. However, private charity So far, it has been suppressed by the government, and the Western method of tax exemption for charitable donations that people hoped will not happen. This is why administrative means are used to achieve the goal.

He said that since the capital can be guided by a series of blows to study Xi Jinping’s essays to find investment directions, he will take the initiative to donate huge sums of money in accordance with the spirit of this conference, and the government will arrange poverty alleviation projects. So the actions taken against capital a while ago are very effective.

He said that Xi Jinping only adopted the term of the third allocation and would not adopt its essence. The effect of administrative measures can be seen from history.

Editor in charge: Sun Yun #

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