A number of foreign media recently published articles stating that China's core debt ratio has stabilized, encouraging innovation to drive economic development and rapid growth of world-class start-ups. China's core debt ratio stabilizes Reuters reported that the latest data from the Bank for International Settlements showed that China's overall leverage ratio was 257.8% in the first quarter of this year, of which the year-on-year growth rate was 4.7 percentage points lower than the end of the previous quarter, and it continued to decline for four consecutive quarters. Previously, China’s excessive credit growth meant that its banking industry was full of crises in the next three years. This situation has improved this year, but credit growth is still at a high risk. China is trying to reduce the leverage ratio of state-owned enterprises through “debt-to-equity swap†and gradually phase out “zombie enterprises†to control capital risks and stabilize core debt ratios. China's innovation-driven development results are brilliant. The UK's Financial Times analyzed the reasons for China's rapid development: First, China's implementation of innovation-driven development strategy. Inspired by the “Double Creation†program, the new generation of Chinese entrepreneurs are active, innovative, and stand out in the fierce competition. Chinese products are gradually getting rid of the “cottage†label and leading the world in new services and business models. Second, China's competitive environment provides protection for domestic enterprises, which helps reduce risks and encourages bold practices. Third, the Chinese market is huge. Fourth, China has abundant human resources reserves. In 2016, the number of graduates in science, engineering, and mathematics in China was nine times that of the United States. The British "Economist" magazine believes that the younger generation of Chinese entrepreneurs are innovative, adventurous and global, and they are leading a new round of world industry and consumer trends. In just a decade, China has become a global leader in innovation, and e-commerce, digital logistics, and all-encompassing social media platforms are growing at an impressive rate. The reason is that China's economy is large, and there is boundless space for local development alone. Second, Chinese people are willing to try new products, new brands, new technologies and new ideas. Third, the Chinese government has strong support, both for funds. Also give policy. One-third of the "Unicorn" company was born on the China-US Quartz financial website. The US Sinik Consulting Company analyzed the financial data release report of the US CB venture capital company. In 2010, almost all the market-to-market valuations reached 10 The $100 million start-ups (the "unicorn" companies) are all from the United States or Europe. But China has surpassed Europe in 2015 and is narrowing the gap with the United States. So far this year, 12 of the 33 companies created in the world have come from China. This is one of the latest milestones in the long-term trend. According to the report, since 2010, more than a quarter of the world's newly created "unicorn" companies have come from China. This growth is at a time when a large amount of private capital is raising the valuation of start-ups and as China begins to mature and become a more advanced service economy.
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