The Influence of Central Economic Work Conference on Cement Industry Next Year

Five missions were proposed at the Central Economic Work Conference held from December 8 to 10 in Beijing. One of the missions is to intensify and improve macro-control, to implement positive budget policy and to moderately loose currency policy. Specifically, the content is as follows: to increase to a large extent the public expenditure, to guarantee key sector and key construction expenditure, to support the post-earthquake-disaster reconstruction, to carry out structural debasement of taxes, to optimize budget expenditure structure, to intensity assistance in three farming issues, employment, social security, education, medical care, energy saving and emissions reduction, independent innovation, advanced equipment manufacturing, tertiary industry, medium and small firms, important reform etc., and to enlarge allowance and social relief for low income family. In order to carry out positive budget policy, local government should hold the direction of policy with stress on solving choke points according to the requirements of optimizing and updating industry structure and competition laws, to firmly eliminate backward productivity and to accelerate products updating speed, and to strengthen the independent innovation ability and industry competitiveness.
 

The content of mission three is to speed up the transformation of development ways and to boost strategic economic adjustments. The third point of mission three is to accelerate urbanization and to promote the integration of economic and social development of urban and rural areas so as to optimize urban-rural structure. The fourth point of mission three is to bridge regional development gaps and to optimize the layout of productivity with purpose to adjust regional structure. Continue to advance the general strategy of the development of the western region, the rejuvenation of old industry bases in northeast regions etc., the rising of central China and the leading development in eastern regions to promote rational flow of factors of production among regions and grads transfer.
 

The content of mission one is closely related to the development of cement industry. It mainly is expressed at the following two aspects: on the one hand, post-disaster reconstruction will be put above all missions, which reflects extreme awareness of central government to it. Therefore, central government will provide strong support in taxes and budget in this area; on the other hand, the concern on energy saving and emissions reduction by central government clearly indicates to speed up industry restructuring and elimination of backward productivity.
 

The content of mission three stresses again the importance of urbanization, pointing out the whole strategical layout of regional development. It can be foreseen that building new countryside and the integration construction of urban and rural area will be one of the main factors to stimulate cement demand and that the transferring tendency of fixed assets investment to central and western areas will be more obvious.
 

It is clear from the content of central economic work conference that in the plan of expending domestic demands and of enlarging investment, the support for post-disaster reconstruction will be strong, therefore we hold a positive attitude towards cement listed companies located in this area; secondly, regional development strategy makes us hold a great vision to the development of cement industry in the future in Hubei Province which is a traffic hub in central and western areas; thirdly, we hold the opinion that the acceleration of structural adjustment in cement industry and the further promotion of industry convergence degree will lead to a sustainable development of cement industry.