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Development of non public economy has more opportunities in the New normal
ReleaseDate: 2016-03-14

 Match 14, 2016

On March 14, NPC delegate and Chairman of JuneYao Group Wang Junjin attended the 2016 Two Sessions special interview program organized by Wang Junjin communicated online with netizens on topics including development of China’s non public economy in the New Normal, premium education, streamlining administration and improving efficiency, and air traffic control system reform.

The interview contents are as follows

Wang Junjin: Future development situation will favor development of non public enterprises.

Host: On the afternoon of March 4, when visiting delegates of the China Democratic National Construction Association and the Federation of Industry and Commerce attending the fourth meeting of the 12th NPPCC and taking part in the joint meeting, General Secretary Xi Jinping emphasized that, it’s imperative to unswervingly adhere to China’s basic economic system, propel healthy development of economies in all ownerships. In your opinion, to propel the development of non public economy, joint efforts in which aspects are needed?

Wang Junjin: This time the General Secretary attended the joint meeting of the China Democratic National Construction Association and the Federation of Industry and Commerce, non-public entrepreneurs all felt very excited after hearing his speech, especially the words unswerving, and three ‘No Change’, he also mentioned how to properly handle government- business relation. The future situation will favor development of private enterprises, and favor development of non-public enterprises, therefore non-public enterprises will face more opportunities, and enter more fields. Furthermore, the mechanism efficiency of non-public ownership enterprises has its self advantages, its decision-making process is fast. The General Secretary this time gave everyone bigger confidence, from the perspective of confidence, it is believed this time all insiders of the non public economy sector must have developed brimming confidence, and are more confidence toward China’s future economic development, and toward the space of non public ownership economy. The General Secretary also mentioned sense of gain, specifically speaking, we have benefited from the opening of the early and pilot implementation at the Free Trade Zone, and also took part in pilot reform, therefore we have a lot of sense of gain.

Wang Junjin: We feel grateful for the serial system reform since the 18th CPC National Congress

Host: General Secretary Xi mentioned that, it’s necessary to let private enterprises truly improve sense of gain from policy. One point involved is effectively relaxing market access, all industries and sectors with no explicit prohibition by laws or regulations should encourage entry by private capital, all sectors that the Chinese government has opened to or has promised to open to foreign investment should be opened to domestic private capital, Premier Li Keqiang also mentioned the point to better inspire the vitality of non public ownership economy in his work report. JuneYao Group is now pursuing diversified development, it is involved in aviation and banking, what’s your view on this issue?

Wang Junjin: The state government always encourages development of non public ownership, we private entrepreneurs attending the Two Sessions better understand the opportunity brought by the opening to non public ownership. Today, any business that one wishes to do can mostly be accomplished, because all fields are open to private enterprises, non public economy has a lot of opportunities. In China today, the non public ownership economy accounts for a high percentage, it is also responsible for a big chunk of employment, development of non public economy is beneficial to stabilizing sustainable development of Chinese economy. Overall speaking, JuneYao Airlines now is developing healthily, JuneYao Airlines has 50 aircrafts, and consolidated its positioning as high value airline company, this is strategic positioning in the previous years, called HVC. After all these years, it fulfilled the target of HVC, with high value market, high net value customers, the customer experience and return must be high, high efficiency will bring high return to shareholders. JuneYao Airlines recorded satisfactory performance growth last year, this year the trend is also satisfactory. Meanwhile it set up low-cost airline Jiuyuan Airlines in Guangzhou, which mainly operates flights from Guangzhou to Southeast Asia, and from Guangzhou to major domestic cities, develops low-cost aviation hub, by 2020 it will develop to 50 aircrafts, the market space there is big. And that area receives little impact from high speed railway, due to mass travel, and tourism development, there are lots of opportunities, from this perspective, in aviation field we also have very great sense of gain.

In the aspect of banking, we took the initiative and set up Huarui Bank, as one of the first batch of pilot private banks, it formally started operation in May last year, by the end of last year its asset size was over 20 billion yuan, which is very healthy for a newly started bank, the merits now is the large number of talents. Owing to Shanghai’s construction of financial center, the entire financial environment is excellent, asset quality is also very good, so long as one is not hot-headed, everything can be done satisfactorily. Therefore we positioned ourselves as century bank, century bank aims at sustainable development.

We have three business departments, the first one is for scientific and technological innovation, which serves hi-tech enterprises, investment and loan linkage, it is a department combining lending and investment, last year we did lots of pilot work, the results are very good, and we have also summarized some experience. The second is Internet Banking Department, which mainly serves small and micro enterprises, and deals with online solutions. The third is banking department like in a traditional company.

In banking field, the entry of private enterprises can benefit from innovation of mechanism, pilot trial in the Free Trade Zone has its value if the pilot attempt is successful, there are things that can be duplicated and spread around. From this perspective, we also particularly have sense of gain. After the 18th CPC National Congress, banking is open to private enterprises, only then we had the chance of participation, therefore we feel specially grateful for the series of administrative system reform, and economic system reform since the 18th CPC National Congress. We also took part in the innovation of banking reform in the economic system reform.

Wang Junjin: Internet + education model can boost radiation of premium education

Host: It is evident that JuneYao Group has made many explorations and attempts in the education industry, it also reaped many achievements, the year 2016 marks the beginning year of the “Thirteenth Five Year” Plan, what plan does JuneYao Group have in charity and education undertakings?

Wang Junjin: Both the Report on the Work of the Government and the “Thirteenth Five Year” plan mentioned, education is also exploring online and offline model, the core is adding remote education, improving the radiation of premium education. Through online model, in the future good education course will not be confined to one school. Futhermore, from education perspective, physical classroom is limited, individualized education must be solved through Internet, namely virtual course. Virtual course can be 100, or 1000, or even more, there can be more courses based on individualized demand. The model of online and offline integrated development, and the operation model of “Internet +” education, also help improve education efficiency, and is beneficial for radiation of premium education. Therefore we are also making active exploration, we began the thinking two years ago, last year we also made some explorations. The core of education must revolve around giving benefit to more children, all explorations must study enhancement of education efficiency, revolving around effective education. Our World Foreign Language Primary School and World Foreign Language Middle School in Shanghai are so popular that many people try hard to squeeze in, if there is expansion and radiation with higher capacity, if the problem can be solved online, then this must be very meaningful, this is also the reason why JuneYao Group spent so much efforts in education for so many years in the past, this part is a very important social undertaking, it also represents corporate social responsibility.

Out positioning is Century Famous School, which is the common goal of all teachers, and parents, especially the school authority, if it becomes a Century Famous School, our education can be called a real success, but now we are still far from Century Famous School, our core mission is to create ability in this aspect, like the vision of JuneYao to become Century Enterprise, social responsibility must accompany enterprise growth and development.

Wang Junjin: The approval takes very long, there are many procedures, it is recommended to cancel aircraft introduction approval.

Host: Speaking of development of the civil aviation industry, another piece of news is very exciting for the public, namely China’s first domestic big airplane rolled off the final assembly line last year, what do you think it implies for the civil aviation industry? Additionally, you have a proposal about cancelling “aircraft introduction approval”, why do you have such a proposal?

Wang Junjin: Big airplane dream is a dream of the Chinese people, if the big airplane is successful, suppose Europe and USA now represent A and B, namely Airbus and Boeing, these two companies controlled the fate of the entire civil aircraft market. If China’s big airplane enters the market, it means A, B, and C, we also hope that Chinese people’s big airplane dream can come true. The successful assembly of the first big airplane signals a new milestone in China’s civil aviation undertaking, it is a very exciting thing.

Admittedly, everyone’s feeling is the same. The approval time for introducing aircraft is indeed very long, the procedures are numerous, it took as long as half year, sometimes a whole year, but when each company is introducing aircrafts, it must make the decision much earlier, because all the furnishing, and type selection inside the aircraft must be notified to the manufacturer one year in advance, both lease and purchase require still earlier arrangements for negotiation, therefore generally it must begin two years earlier. For instance, concerning aircrafts for the year after the next or the year following the year after the next year, we must make decision now, which is not coordinated with the quota approval for aircraft introduction, in this way it will not help enterprises improve overall performance. Like import cars, introducing vehicles needs no approval, in fact there is no need of obtaining approval for introducing aircrafts either, especially for private companies, who spend its own money, no one will let the aircraft stay idle after making purchase, it’s ridiculous if such an expensive thing stays idle after purchase. The core issue is safety supervision, and allocated resources must comply with civil aviation safety standards. After the aircraft is introduced, if there is no safety standard regulations, inadequate personnel, and inadequate resources, it is impossible to start operation, this is already a very important checkpoint.

Therefore the approval of quota at the introduction step can be dispensed with, as for what to do with the aircraft after introduction, it can be left to each company to decide in view of market demand. Today, the public is concerned with issues like streamlining administration and delegating powers, and reducing approval. We are not alone, private enterprises and state-owned enterprises both feel there are affected by approval. If it spends foreign exchange by the state government, then it must be considered from another perspective. Because there are safety standard regulations and resource allocation regulations before start of operation, inadequate resource allocation will not lead to operation, approval of aircraft introduction can be dispensed with, this is reasonable. From the perspective of efficiency reform, from the perspective of streamlining administration and delegating powers, streamlining administration and delegating powers requires more efficiency after streamlining, in my view I consider it can benefit the implementation of streamlining administration and delegating powers.