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2017 two sessions hot prospects will be related to the development of coating industry


2017 is a key year of comprehensive deepening reform to push, "13th Five-Year is an important year for the implementation of" planning, but also China held the nineteenth National Congress of the Communist Party of the year. In this important historical node, the two sessions in March 5th and in the Great Hall of the people held in March 3rd. So what are the hot NPC and CPPCC? What are we and the paint industry is closely related to the content? In the future, companies can seize opportunities, break the embarrassing situation, to keep up with the national economy high speed development?

Hot one: deepen the supply side reform: a clear breakthrough path to deal with the four relations"

By the end of 2015, the supply side structural reform on the agenda. In 2016, the importance and urgency of the reform of the supply side, results: obvious to people steel and coal production capacity to complete the task over the year, commercial housing inventory levels continued to decline, the market debt equity swap and merger and reorganization of enterprises in an orderly way, the cost of the real economy declined, key areas to make up the short board to achieve positive results.

As the deepening of structural reform of the supply side, the breakthrough path in 2017 has been clear: deal with the government and the market, short-term and long-term, subtraction and addition, supply and demand, the four relations".

So for the paint industry, this is simply a pain into an antidote against the disease control center, fundamentally resolve a little now ailling whole industry.

"Real estate to inventory", will drive the consumption of paint

"Real estate inventory" is one of the main investment opportunities brought about by supply side reform. To resolve the real estate inventory, promote sustainable development of the real estate industry, which is the real estate industry as a pillar of re recognition. To promote the sustainable development of the real estate industry, can drive the development of iron and steel, cement, paint and other downstream industries, to resolve the capacity of these industries, effectively stimulating employment, after the real estate inventory digestion, will bring consumption increment good for coating market, especially in the high stock market three or four lines. While many of China's domestic paint market is mainly concentrated in the three or four line of the market, including local paint leader Carpoly.

Eliminate zombie companies to resolve excess capacity, will promote the transformation and upgrading of the paint industry

At the industrial level, the elimination of zombie companies, to resolve excess capacity, stimulate the vitality of enterprises, is the focus of supply side reform, which is the current urgent need to address the coating industry. With the rapid development of China's paint industry for more than two years over the past few years, China has become the world's largest paint. But Chinese economy has entered a new norm, the paint industry began to highlight the phenomenon of pile up in excess of requirement, serious excess capacity, many dealers have to sell inventory almost a year, to effectively resolve the overcapacity has become a top priority for the paint industry. Elimination of zombie companies, to resolve excess capacity, on the scale, strength, technology, coating companies, is undoubtedly an opportunity for development.

Hot two: Environmental Governance: strengthen environmental inspectors, promote green development

In this year's national two sessions, the provinces and cities have taken pollution control as an important task. In 2017, the national environmental protection work conference, Minister of environmental protection Chen Jining said that in 2017 to achieve full coverage of the central environmental inspectors. In the face of the current environmental situation, the two sessions will be clear which environmental tasks, will become a member of the public concern and hot spots.

As everyone knows, as the traditional industrial coatings, which belongs to the "double high" in the environmental protection industry, more stringent policy situation, the state environmental protection departments put forward higher requirements on the environmental performance of paint products, put forward higher requirements but also to paint business pollution problem. Green development and coatings industry is closely related to the environmental transformation is now unified goal of every coating enterprises, people go first column, someone to keep up with science and technology, people have increased efforts to instill the idea, some people see the transition from the paint industry.

Hot three: "Belt and Road Initiative" strategy and international cooperation

In August 2016 September, the "The Belt and Road" construction work of the forum, G20 summit, Xi Jinping has repeatedly stressed that "the development strategy of The Belt and Road". The January 17, 2017 Davos forum, President Xi Jinping again "The Belt and Road" construction, and that will host the "The Belt and Road International Cooperation Forum in May 2017. At present, "said The Belt and Road" 28 provinces of the government work report, mainly involving capacity cooperation, economic and trade exchanges and cultural exchanges etc.. "Belt and Road Initiative" is expected to continue to ferment in the national NPC and CPPCC and 2017.

Along the way countries in each area of cooperation involved in all aspects, which cannot do without the construction of infrastructure, which requires the paint industry and downstream industries, such as iron, high participation, build the construction of oil and gas pipeline, port construction, and high standard level and let the paint and other industries in this the expansion of the market.

But paint companies want to share a share in the trend of the times, we must first achieve the transformation and upgrading of the gorgeous turn, the upgrade is still mainly rely on technological innovation, to adapt to international demand, to meet market demand. At present, the production capacity to excess, forcing companies to think the remaining capital to where, "The Belt and Road gives a direction of transformation, in accordance with the direction of intensive and meticulous farming, probability of success will be greatly increased. In the promotion of this powerful, "The Belt and Road" will bring business opportunities and development direction for the paint industry in our country, and accelerate the upgrading of the industry reshuffle and the transformation of enterprises.

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