What Is a Credit Investor?

Credit investment refers to an economic activity that concentrates financial credit funds and idle funds of social umbrellas in the form of credit, supplies and meets the needs of investment and construction of fixed assets, and promotes the development of socialist production and construction.

Credit investment

Right!

Credit investment refers to an economic activity that concentrates financial credit funds and idle funds of social umbrellas in the form of credit, supplies and meets the needs of investment and construction of fixed assets, and promotes the development of socialist production and construction.

Chinese name

Credit investment

Concept

Concentrating financial credit funds by credit

Function

Promote the development of socialist production and construction

Make up

Country, bank, corporate credit investment

Relationship

Interconnected and distinct

Operating characteristics

Macro-regulatory

China's credit investment consists of three parts: national credit investment, bank credit investment and corporate credit investment. National credit investment refers to economic activities in which the state, as a debtor, uses the credit method to raise funds from society and use it for national economic construction. Bank credit investment refers to economic activities in which banks raise credit funds by absorbing deposits and issuing financial bonds, and use them in accordance with relevant national policies and policies. Corporate credit investment refers to the way in which an enterprise or company raises funds from the society with credit to use in its economic activities for production and construction. ^[1]

Credit investment is an indispensable and important part of modern economic life. Under the current situation of contradiction between supply and demand of funds in China, making full use of credit investment is of great significance for promoting the development of the national economy and society. The specific role of credit investment is shown in the following aspects: ^[2]

Due to the different credit investment subjects and purposes, the operation of credit investment also shows different characteristics. ^[1]

Fully understanding the operating laws of credit investment is of great significance to strengthening the management of credit investment and correctly guiding the flow of funds. Regarding the operation law of credit investment, we will explain it from the following aspects: ^[1]

(I) The operation of credit investment must maintain a relative balance between the supply and demand of monetary funds

Under certain economic conditions, the total amount of monetary funds supplied by the country is constant, that is, the supply and demand of monetary funds are relatively balanced, which is a prerequisite for the stable development of the national economy. The operation of credit investment will not change this equilibrium relationship, it will only change the right to use monetary funds in the short term. Because whether it is national credit investment, bank credit investment or corporate credit investment, repayment is the prerequisite. In the process of credit investment operation, the fund provider only temporarily surrendered the right to use the funds, and the fund raiser only temporarily obtained the right to use the funds, thereby playing a role in decentralizing to centralizing the funds, but did not occur to the total amount of monetary funds Any impact. According to this rule, when determining the size of credit investment, we must consider the availability of monetary funds under certain conditions. The kind of blindly engaging in a "saving war" without customer perceptions is obviously worth the loss.

(2) Credit investment tends to flow in a good direction

The movement of credit funds is a special type of value movement, manifested as a unilateral value transfer, and the result of the movement; it must be to achieve value appreciation. The reason why the provider of the funds is willing to temporarily surrender the right to use the funds is to obtain the time value of the currency, that is, to obtain a greater value than the original input value. For fund-raisers, whether they can afford and how much value-added they can pay in the future is the first factor to consider. Whether they can afford and how much value-added will depend on investment The effectiveness of the target, that is, the better the target's benefit, the stronger its solvency. Therefore, credit funds will flow more in this direction. According to this law, the state must strengthen strict management and supervision of the operation process of credit investment. Among them, the analysis and evaluation of the future profitability of credit investment entities play an important role, so as to ensure that funds flow to the greatest extent. To maximize the benefits.

(3) The operation of credit investment is closely related to social and economic activities

The materialization of socio-economic activities is represented by simple production activities and expanded production activities in society. It manifests itself as a social material movement, and on the other hand it is a social monetary fund movement. The social material movement is the basis of the social monetary fund movement, and the credit fund movement is an important part of the entire social capital movement. It must be closely related to the entire social material movement and social capital movement. On the one hand, it will be restricted and affected by the social material movement and social capital movement, and on the other hand it will affect and regulate the social material movement and social capital movement. First, the source of funds for credit investment depends on the development of production and the increase in national income. Second, the appropriate scale of credit investment will stimulate the development of production and increase national income. According to this law, when arranging credit investment, the possibility of existing social material conditions must be taken into account, so that the scale and structure of credit investment can be adapted to the available material supply and industrial structure.

(IV) The operation of credit investment is closely related to the operation of fiscal investment and other direct investments

Credit investment, fiscal investment, and other direct investments constitute a country's total investment for a certain period of time. Under the condition that the total amount of national investment is constant, there is a relationship between them. Therefore, the ratio with other investments must be properly handled Relationship to ensure the smooth operation of credit investment.