REVIEW: The media coverage is not included in the current financial subsidy benefits, specifically how the program, being unknown. Government grants included in the current income consistent with international practice, why in some places but disfigured? ST is not included in current earnings prove safety stock,
Gaosuibuyou Thailand 中广网 Beijing on December 19, according to Voice of the economy associated with the assets and revenue-related government grants and government subsidies, and should be included in current income. However, the media reported today, an East investment bank brokerage sources, Another investment bank brokerage insurance on behalf of East China, said: Voice of economic commentators, macroeconomic analyst at Galaxy Futures brought Mr. Zhao Wei comment.
Mr. Zhao Wei: I think this news is a rumor, because the express criteria changes, especially changes to government subsidies related documents, once the changes, the profit or loss will be very large changes, resulting in a change in the three tables, which listed companies to say, will indirectly affect earnings, thus affecting the entire market for the listed company’s expectations.
Moderator: According to incomplete statistics, as of mid-year, small plates, GEM, new listings this year, a total of 953 board listed companies, 855 companies received a total of 4.761 billion yuan government subsidy. Year 2010, this figure is 9.743 billion yuan, involving 926 companies. In fact, government subsidies included in current earnings in line with international practice. Only in China, listed companies and local governments to use tacit guidelines, whitewash the income statement. Many verge of delisting of the company to achieve profitability through government subsidies, in order to avoid delisting. According to what you know, the reality is like?
Mr. Zhao Wei: there are some listed companies, the existence of such practices, we also know, IT industry, profits are not particularly high, but government subsidies, so the current yield will be better, but I think the essence, although the high-tech companies and IT businesses really need government support, but how to make high-tech business growth, need long-term planning, needs dialectic.
Moderator: Another comment that this argument is directed against the ST companies, if this news is true, then the ST’s insurance will also increase the difficulty of many of the shell, you think so?
Mr. Zhao Wei: Yes it is, because some companies use their financial vulnerability, to drill ST’s advantage. If the government issued regulations, to some extent will the dust ST performance of some listed companies to make the practice of containment.