CPPCC National Committee Member Feng Yidong: The primary task for traditional enterprises to transform and upgrade is to "proactively adapt to market development."

China Net Finance and Economics, March 11 — Recently, Feng Yidong, member of the National Committee of the Chinese People’s Political Consultative Conference and General Manager of Zhongtai Securities, shared his views and suggestions on the future development of the stock market and how traditional industries should transform.

Feng Yidong stated that in the A-share market, the Shanghai Composite Index will definitely reach new highs in the future, and may even keep setting new records. “But it certainly won’t hit a new high tomorrow or within a month. Such a market is unstable, lacking a solid foundation and resilience.” The stock market trend must be complementary to the development of the economy and enterprises.

“Overall, I am confident in the long-term prospects of the stock market. Short-term risks and fluctuations are normal, and the long-term upward trend of the stock market has not changed,” Feng Yidong pointed out.

Regarding the transformation of traditional industries, Feng Yidong said that the transformation of traditional industries themselves is very important. Traditional enterprises may face a situation where “a large ship finds it difficult to turn around.” During the transformation process, they must adapt to new trends in economic and social development. For example, steelmaking companies that have been producing crude steel will inevitably face problems in future development, but there is still a supply-demand gap for special steel in the market. Therefore, companies can shift from crude steel to special steel to meet market needs. If a company only transforms within traditional models without improving performance, such a transformation is quite difficult. Therefore, traditional enterprises must proactively adapt to market development.

Feng Yidong pointed out that the country supports the green transformation of traditional industries, especially in finance, where policies are still abundant. For example, green bonds—traditional enterprises can actively seek to issue green bonds for financing during their transformation and upgrading process. There are also green loan policies; if a company’s projects meet the conditions required for green loans, traditional industries can proactively plan projects that qualify for financing to develop themselves and complete industrial transformation and upgrading.