Building a financial support system for recycled metal industry

Recycling metal industry belongs to the country's strategic emerging industry and has huge development space. As a growing sunrise industry, sustained, healthy and steady development is inseparable from the support of various national systems, policies, and means, especially financial support. However, unfortunately, the recycled metal industry has not been favored by the capital market for a long time. "Financing difficulties" have become the "bottleneck" of industrial development. At present, the call for the establishment of a financing model for “recycling metals industry mutual assistance” has gradually begun to become a hot topic of concern in the industry. Is it feasible for the investment and financing mechanism jointly initiated by industry associations and organized by investment institutions and banks? Can we effectively expand business investment channels and solve financing difficulties? From the perspective of the strategic development of the recycled metal industry, constructing a financial support system that meets the requirements for the development of the recycled metal industry should help improve the scale, technology, and management of China's recycled metal industry, and help improve the overall cohesion and risk resistance of the industry. The ability and core competitiveness are conducive to ensuring the healthy development of the recycled metal industry.

1. The establishment of a financial support system adapted to the development of the recycled metal industry is the need for the research and development of industrial technology equipment.

In recent years, the overall technological level and equipment of China's reclaimed metal industry have been continuously improved, but there is still a certain gap compared to advanced developed countries. For example, there are few companies engaged in research and development of professional technologies and services, and the integration of production, study and research is not tight enough. Many core technologies are not yet fully mastered. Some important industry-specific complete sets of equipment fall into the obvious shortage of independent intellectual property rights, and many key common technologies need to be urgently promoted and industrialized. In recent years, although many companies have increased the research and development of technical equipment and technological innovation investment, but based on the industry as a whole thin, difficult financing status quo, enterprises are not competent, R & D investment is obviously insufficient.

In today's increasingly internationalized industrial development, China's recycling metal industry must seize the initiative, not only to advance the tactical layout, but also to strategically achieve high-end products and technical equipment for production and research and development, and vigorously promote industrialization. development of. Recycling metal enterprises are a special field. For example, when the industry develops in accordance with the requirements of environmental protection policies, the technical equipment and technological level will be developed from the initial stage of cultivation to the formation of products and then the industrialization. Each link will be inseparable from the support of funds. Breaking the capital chain will certainly delay the research and development of the project or give up all previous efforts. Without the financial drive, it will not be able to meet the continuous progress of related projects such as industrial technology and equipment and technological level.

2. The establishment of a financial support system adapted to the development of the recycling metal industry is the need for industry standardization.

The role of China's renewable non-ferrous metals industry in increasing resource supply, energy saving and emission reduction, and protecting the environment has become increasingly significant. It has become an inevitable choice for industrial standardization and sustainable socio-economic development. At present, China's economy is in a period of structural adjustment and is closely related to the prospects for the development of recycled metal industry. With the continuous improvement of the industrial policy system, recycled metal companies have increased their investment in technology, technology, equipment, environmental protection and upgrading. At the same time, the consumer market of the recycled metal industry is expanding day by day, and products are gradually being upgraded to high-end precision. Many materials have been widely used in national strategies, defense, telecommunications, home appliances, and automobiles. The industry is developing in the direction of standardization and there are unlimited business opportunities. To seize business opportunities depends on sufficient funds to protect. In October 2015, Hunan Province launched the "Management Measures for the Development of New Industries in Hunan Province (Trial)", which will fully utilize high-end financial tools to protect the core competitiveness of modern enterprises and effectively promote the standardization of emerging industries. , is a good example of industry establishment.

3. The establishment of a financial support system adapted to the development of the recycled metal industry is the need for the transformation and upgrading of enterprises.

With the requirements of the green industrial development trend, industry access thresholds continue to increase, and the pace of transformation and upgrading of the recycling metal industry is also accelerating. Effectively, companies that have not fully achieved the standards have consciously kept up with the pace, self-improvement and self-upgrade. However, in the upgrading of companies, whether it is to eliminate old process equipment, or the use of new technology and equipment, can not do without a lot of capital investment. Without the support of funds, enterprises cannot rapidly transform and upgrade, which has hindered the project construction, production, or restructuring of the company to a certain extent. In particular, as environmental protection demands more and more “three wastes” (wastewater, waste gas, and waste slag), research and development and processing technologies and equipment require a lot of investment. Over the years, due to the “financing difficulties” of enterprises, the transformation and upgrading of the recycled metal industry, and being bigger and stronger have been subject to certain restrictions.

In order to guarantee the smooth development of production and operation, many companies hope to use the capital market to find financing channels. For example, GEM, an enterprise engaged in the recovery and utilization of cobalt and nickel resources, has rapidly achieved scale expansion and become a successful company that capitalizes on the development of the capital market. However, as of the end of October 2015, the number of recycled metal industries in the entire capital market was no more than 10 companies. Overall, it is not easy for recyclable metal companies to enter the capital market.

4. The establishment of a financial support system adapted to the development of the recycled metal industry is the need for the industry to control the risks and gain the right to speak.

For a long time, renewable metal companies have only a single source of financing. On the one hand, when bank risk capital takes a wait-and-see attitude toward the recycled metal industry, it is difficult for the recycled metal companies to participate in market competition through conventional commercial means, whether it is technology research and development, equipment renewal, industrial upgrading, structural adjustment, or market price fluctuations. On the other hand, when the market risk comes, it is difficult for companies to take effective measures to avoid market risks or cope with unfavorable conditions.

China's renewable metal industry is booming. It is the world's largest consumer of non-ferrous metals, but it has yet to form a complete trading market and lacks market discourse power. The enterprises located at the bottom of the entire non-ferrous metal industrial chain are often in a passive position. If China wants to grasp the initiative of non-ferrous metals in international market transactions, it is crucial to accelerate the establishment of a financial support system suitable for industrial development. In the context of the shift from the “new normal” to the “supply-side reform” of the Chinese economy, the construction of a “mutual assistance” model will not only provide effective financial and risk management tools for the upstream and downstream companies in the industrial chain, but also ensure the industry The formation of a market-based pricing mechanism can also enhance the international pricing power of China's industries, optimize the industrial structure, promote the rational allocation of resources, ensure the sustainable development of the industry, and meet the development requirements of the industrial age.