The cancellation of the market reaction to limit shares has started to brewing!
On April 18, the collective of domestic auto stocks fell sharply. Beijing Motors once fell by more than 15.68%. Brilliance China once fell more than 10%.
Why did the auto stocks collapse? It is nothing more than the NDRC's issuance of a time-to-open ratio schedule: the elimination of foreign-invested equity ratios for special vehicles and new energy vehicles in 2018; the elimination of restrictions on foreign-invested shares in commercial vehicles by 2020; the elimination of foreign-invested-to-equity ratio restrictions on passenger cars in 2022, and the abolition of joint ventures No more than two restrictions. That is, through the 5-year transition period, the auto industry will all cancel the restrictions, and the capital market will worry about the future profits of the existing car companies.
Then, let's relax the equity limit of the joint-venture car company. Will there be any pressure on most car companies? there must be!
After all, in the existing major auto groups, the joint venture brands are all profitable cows, and rely on models and technologies imported by foreigners to make a good day. Once the stock ratio is released, there will be an assumption that foreign parties will require greater proportion of shares in order to pursue the maximization of corporate interests and rely on technology and models.
Is this assumption unlikely? It is very likely to become a reality. This requires the car to be prepared to seriously challenge itself.
However, it is not a wolf to let go of the equity ratio of the joint-venture vehicle company. Everybody does not need to be too nervous. Even if there is pressure, it can still go from smooth transition to final surpass.
First of all, the development of China's own brands has entered a new stage. The high-quality development of a number of independent brands such as Guangzhou Automobile Chuanqi, SAIC Roewe and Geely has already had the ability to participate in global competition.
In the past two years, these brand markets have repeatedly made breakthroughs in the upward direction and continuously squeezed the market space of some multinational brands. This is evident from the Guangzhou Automobile Chuanxiong. The successful breakthrough of the three high-end models of GS8, GM8 and GA8 broke into the price range of traditional joint venture brands. At the same time, after completing the rapid development in China, Chuanqi actively challenges the North American market with the highest global standards, and step by step to solidify the foundation for final entry.
Second, the research and development capabilities of China's automotive technology have also been greatly improved. At present, the investment in R&D of domestic large-scale automobile enterprises is increasing substantially, and the global R&D network has gradually taken shape. On April 17th, GAC Group’s GAC Los Angeles Forward-looking Design Center was formally inaugurated. This is the GAC Group’s re-deployment R&D organization in North America following the establishment of the Silicon Valley R&D Center last year. Changan Automobile and Great Wall Motor also have different R&D institutions located in Europe, North America, and Japan. Today, in the market, mainstream self-owned brands are based on positive development. Reverse plagiarism has become history.
Furthermore, the strength of Chinese car companies is not as weak as they used to, and they already have the ability to dialogue. In the 2017 Global Top 500 rankings, China’s auto companies accounted for 6 seats, including SAIC (41), Dongfeng Group (68), FAW Group (125), Beijing Automotive Group (137), and GAC Group (238). Bit), Geely Holding Group (343). In addition, in the joint-venture vehicle enterprises, China’s introduction of technology and vehicle platforms has begun to materialize, and Guangzhou Automobile’s Mitsubishi last year introduced a model that was imported into the GAC Group for production and sales.
More importantly, besides opening up the equity ratio, the accelerated inflow of new technologies from abroad will promote and promote the progress of independent brands, such as the rapid formation of new energy industries, which will promote beyond the higher level, not just The development of existing businesses.
Looking back at the history, before the accession to the WTO that year, there were also concerned parties. After integrating into the global industrial chain, will China's auto industry be subjected to unrelenting disasters and whether China's auto industry will be eliminated in the process of globalization.
However, the results of the past 15 years tell us that we have actively opened up and accelerated convergence, through the full opening of the manufacturing industry, and supported Chinese and foreign companies in achieving a common development in a level playing field, and encouraged Chinese and foreign companies to carry out more extensive capital, technology, management, and talent. Exchanges and cooperation, but forced their own brands to better and faster growth.
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