Press Briefing On Shandong Province`s Market Participants under the Financial Crisis

[14:19:01, 5 May, 2009] The briefing is chaired by Kong Fanke, director of the International Communication Office of Shandong Provincial Party Committee, director of the publicity section of the Information Office of Shandong Provincial People`s Government, and director of the Office of Shandong Provincial News Release Coordination Group.

[14:32:13, 5 May, 2009]Kong Fanke: Good afternoon, friends from the press, ladies and gentlemen.

[14:32:16, 5 May, 2009] Kong Fanke: Today, Today, we hold a provincial government press briefing and have invited Mr. Wang Tianren, deputy secretary of the Party Group, deputy director, and spokesman of the Provincial Administration of Industry and Commerce, to give us a briefing on the registration and operation of various market participants in Shandong Province.

[14:34:56, 5 May, 2009] Wang Tianren: Good afternoon, friends from the press, ladies and gentlemen.

[14:35:12, 5 May, 2009] Wang Tianren: As we all know, the international financial crisis that began in the second half of last year has brought varying degrees of difficulty and influence to our province`s economic development and enterprises’ production and operation. So, how to assess and judge the influence has become an important issue of deep interest to party committees and governments at all levels, and various circles, as well as a hot issue that attract the media’s attention. Next, I will brief you media friends on the current registration and operation of our province’s market participants, on the basis of the information obtained from the annual and quarterly statistics made by our province’s industrial and commercial system and the information obtained from the recently organized "big interview".

[14:35:19, 5 May, 2009] Wang Tianren: I. Analysis of the information of the market participants’ registration in the first quarter of this year.

[14:35:37, 5 May, 2009] Wang Tianren: Here what are called "market participants" include various kinds enterprises, privately-owned businesses and farmers’ professional cooperatives registered with the industrial and commercial authorities at all levels.

[14:36:20, 5 May, 2009] Wang Tianren: Judging from the registration with the industrial and commercial authorities within the whole province in the first quarter of this year, the market participants of all types in our province are to varying degrees affected by the financial crisis; however, the majority of investors and operators are regaining their confidence and the development of the market participants is showing signs of recovery, under the action of the central and provincial governments’ series of policies and measures for guaranteeing growth, expanding domestic demand, adjusting the structure and promoting development. By the end of the first quarter of this year, there were 2,531,000 market participants of all kinds in our whole province, with a registered capital of 2.2 trillion yuan, an increase of 6.7 percent and 14.8% compared with the same period last year respectively, and an increase of 2.7% and 2.6% respectively as against the end of last year. Our province`s newly registered market participants of all types were 141,000 in the first quarter of this year, an increase of 59.9 % compared with the same period last year, and the newly registered capital was 55.44 billion yuan, a decrease of 5.2 percent compared with the same period last yea. If we exclude the special factor of the registered capital of 10 billion yuan owned by Shandong Iron and Steel Group, which set up in March 2008, the increase compared with the same period last year is 14.3%, a good development trend.

[14:48:33, 5 May, 2009] Wang Tianren: II. Analysis of the information of the market participants obtained from the "big interview" carried out by the industrial and commercial system
In view of the effect and influence of the financial crisis on the market participants of all kinds in our province, in order to find out the extent to which the production and operation of the market participants are affected, and to study and put forward more effective measures to help enterprises remove their worries and solve their difficulties, the Provincial Administration of Industry and Commerce organized the province`s industrial and commercial organs at all levels to carry out a one-month "big interview" beginning in mid-February this year. During the activity, all the business offices of the Provincial Administration, 17 city bureaus, more than 160 county-level bureaus, and about 2000 industrial and commercial stations were involved, and they held interviews with market participants of different ownerships, different industries, and different types within their jurisdiction, covering every township and urban district throughout the province.

[14:49:13, 5 May, 2009] Wang Tianren: 1. The basic operation trend of the market participants under the financial crisis in our province

[14:49:17, 5 May, 2009] Wang Tian-ren: First, in terms of the basic level, the majority of the market participants show a welcome tendency of development. Secondly, in terms of the nature of ownership, market participants of different ownerships have different abilities to resist risks. Thirdly, in terms of industry, labor-intensive and capital-intensive industries are more affected. Fourthly, in terms of the scale of operation, small and medium-sized enterprises are the most affected groups. Fifthly, in terms of the direction of product sales, the export-oriented market participants are more affected than the domestically-oriented market participants. Sixthly, in terms of competitive advantage, market participants with their own brands, good credibility, and high technology have great ability to resist the influence.

[14:55:22, 5 May, 2009] Wang Tianren: 2. The adverse effect of the financial crisis on the market participants in our province. The interviews show that the difficulties which hard-pressed and closed-down enterprises encounter in their production and operation are mainly as follows.

[14:55:52, 5 May, 2009] Wang Tian-ren: First, they are short of capital flows, and their financing environment has worsened. Secondly, consumer confidence has declined and market demand has gravely shrunk. Thirdly, raw material prices fluctuate too much and enterprises’ cost has increased by a wide margin. Fourthly, their consciousness of brand and credibility is not strong and innovative ability is poor.

[14:57:47, 5 May, 2009] Wang Tianren: 3. the main measures which our province’s market participants adopt to cope with the financial crisis. With the vigorous support of the governments and the relevant departments, the market participants of various types in our province have taken a variety of measures to reduce operational risks so as to cope with the effects of the financial crisis.

[14:59:30, 5 May, 2009] Wang Tianren: 4. The hard-pressed market participants’ functional requirements of the industrial and commercial departments

[15:00:11, 5 May, 2009] Wang Tianren: In short, judging from the registration information of market participants of all types in the first quarter of this year, our province has achieved obvious effects in dealing with the financial crisis and the developing tendency of various market participants is comparatively good, because departments at all levels conscientiously implemented the decisions and plans of the Party Central Committee, the State Council, the Provincial Party Committee, and the Provincial Government, and strengthened their support for the market participants. Thank you!

[15:06:27, 5 May, 2009] Ke Fan: Today`s press briefing is over. Thank you.