Xinhua news agency, beijing, 29 december: the cost of financing is falling, multi-channel outreach — third point of view of the private economy
Xinhua journalist
One of the difficulties encountered in private enterprise development was the lack of security of factors of production, especially the high financial pressure. The recent central economic work conference had clearly proposed the promotion of private enterprise development and the implementation of a number of initiatives in such areas as factor acquisition。
Since july this year, when the central committee of the communist party (cpc) state council issued its opinion on promoting private economic development, a series of financial initiatives have been launched to address the challenges of financing private enterprises. In particular, since the central finance conference was held at the end of october, various departments have been actively implementing the spirit of the conference and promoting the provision of high-quality financial services for economic and social development。
At the moment, can people finance themselves? Has the cost of financing decreased? Has access been expanded? At the end of the year, journalists visited guangdong, beijing, jiangsu, chongqing and so on and felt the change。
Impact: volume increase, price decrease, expansion
“although overseas demand is weak, there are many domestic opportunities this year.” turning to this year's development opportunities, pan taehua, president of the guangdong syndicate environmental systems inc., opened the box: from the construction of domestic orbital traffic to the upgrading of the chemical smelting industry to the new material energy prospects ..
In the view of ban, the opportunity is short-lived and financing is particularly important for private enterprises to seize the development window. “the projects we undertake tend to have a longer construction cycle and require medium- to long-term financial support.”
In a number of studies, journalists have found that the “lack of medium- and long-term loans” and the “high pressure on the cost of finance” are frequently referred to by private business owners, reflecting the financing needs of current enterprises。
Since the publication of the opinions of the state council on promoting private economic development, the financial sector has held consecutive seminars and workshops on financial support for private enterprise development, and financial institutions such as the bank of construction, the china postal savings bank, the bank of china, the bank of china and the bank of hong kong have launched action programmes to support private economy and private enterprise development. In hubei, zhejiang and sichuan, policies have also been put in place to promote private economic development, with an emphasis on supporting private enterprise financing。
At the end of november, eight departments, including the people's bank of china, issued a joint circular to launch 25 specific initiatives in support of the private economy and to continue to strengthen private enterprise financial services。
With the help of the policy “package boxing”, private economic financing has been “higher, lower prices and larger”. In the first three quarters, new private holdings loaned 4 trillion yuan, or 21. 6 per cent of all new ones; in the previous 11 months, the interest rate on enterprise loans was 3. 89 per cent, which remained at a historically low level since statistics were available; and in late november, the private sector bond financing tool had accumulated credit support of $24. 38 billion in bonds issued by 140 private enterprises。
In addition, there has been a marked increase in the investment of financial resources in new dynamic areas where private enterprises are deeply involved. At the end of october, the balance of “specially new” smes, smes and high-tech enterprises increased by 17. 7 per cent, 22. 1 per cent and 15. 7 per cent respectively, all of which were significantly faster than the increase in loans during the same period。
On 17 december, the hyperbolic 1 commercial launch vehicle was successfully launched at the liquor spring satellite launch centre, and beijing interstellar glory space science and technology, inc., again successfully completed its rocket launch mission this year。
The company's finance director, an guowei, told journalists that the enterprise's r & d is at a critical stage in enhancing its investment, which alone amounts to more than billions a year. With the support of the re-financing policy, this year enterprises received 100 million yuan in low-cost loans from the comptoirs, significantly easing the financial pressure。
Breakthrough: compromise and solve the problem of banks not to lend topic
Lack of fixed assets for collateral, lack of referenceable credit information... These factors often lead to private enterprises being denied access by financial institutions, while increasing credit, for example through guarantees, tends to increase the cost of financing。
“small businesses are often rented, with uncertain collections, and often face arrears and difficult financing.” he ́s the financial director of hunan ding machinery ltd. Told the journalist。
It is not the only way to promote information-sharing or solve problems. In its recent capacity as a supplier to the trinity group, the machinery, based on orders with the trinity group, received over $6 million in financing support from banks at less than 4 per cent of the value of the “triple gold ticket” supply chain platform。
“strategic development of supply chain finance through digital technology applications and changes in business processes, such as receivables certification, can enhance the risk management of financial institutions and enhance the ability to “cancellate, lend, lend, lend” to private micro-enterprises. The director of the shanghai financial and development laboratory just said that。
The circular issued jointly by the eight departments proposes to direct banking financial institutions to actively explore supply chain de-nuclearization models and to support private msmes in the supply chain in order to carry out such business as order loans, warehouse receipt pledge loans, etc. Behind this is the need to optimize financing packages by relevant sectors, local governments and financial institutions, and to work to accelerate the breaking of congestion points in terms of information-sharing, innovative collateral and so forth, and to create a sound environment for private enterprise financing。
In yunnan, 38 provincial units and 222 independent legal entities of banks had access to the yunnan “integration of convincence” platform, and the bank had awarded over $64 billion to businesses through the platform as of 25 december; zhejiang had launched its first policy paper on bio-living mortgages for aquaculture products in november, leading local financial institutions to explore mortgages for fishery bio-living assets; and hainan sea mouth message, with a co-financing of 30 million yuan at the central and municipal levels to compensate for the risk of intellectual property pledge financing。
In less than three years of existence, the sioux yuzhmorgeologiya biomedicine ltd. Received a credit of $150 million from the construction bank for up to seven years, thanks to new technologies with autonomous intellectual property rights that greatly enhance the treatment of oncological drugs. “the development of new medicines to the market usually takes about 10 years, and long-term stable funding is a firm support for businesses.” the company's founder, xue xue, told journalists。
In recent years, the bank has been able to innovate the evaluation system around intellectual property rights and help front-line workers solve the problem of non-privilegability. At the same time, banks are entitled to up to 80 per cent of the principal amount in the event of non-performing loans from start-ups such as ifab, combined with risk compensation policies at parks, municipal and provincial levels。
In the view of the director of the monetary policy department of the people's bank of china, structural instruments have effectively played a positive incentive role and have helped to encourage financial institutions to set up long-lasting mechanisms for “gold loans, loans, loans, loans”. By the end of september this year, the balance of re-loans for sti was r$34. 56 billion, and financial institutions were strongly encouraged to extend loans for sti-based enterprises。
Upgrade: demand for diversified financing for quality development
The success of the parties is beginning to be felt, but it has been possible to break down the funding difficulties of civil enterprises. Private firms, in particular, are targeting strong chains, green low-carbon, and science, technology and innovation, which also places higher demands on financial services。
“enterprise development requires more than just finance, and more than anything else.” the deputy general manager of jiangsukorian science and technology ltd., xu zhi, told journalists that, with the help of the bank's “lending association” model, businesses were not only becoming more popular with financial institutions, but also introducing industrial investors such as north and guangzhou, adding more safeguards to the development of new energy tracks that have been set up in recent years。
Journalists have found that growing private enterprises, especially creative ones, are eager to access a variety of integrated services, such as equity investment and the matching of industrial resources, in order to accelerate the transformation of business outcomes。
However, in the face of the development needs of private enterprises, the current quality of financial services remains inadequate, the high level of homogeneity of financial products, the uneven development of direct and indirect financing, and the need to further refine the financing support policy system and optimize the financing supply structure。
The central financial work conference recommended that “finance provide high-quality services for economic and social development” “optimize financing structures and better function capital market hubs”. Joint circulars issued by the eight sectors also explicitly provide for easy access to private sector bond financing to scale up equity financing for quality private enterprises。
It is foreseen that direct financing for private enterprises will continue to expand. As at 14 november, there were 229 listed companies in the north, with a total market value of over $280 billion, of which private enterprises accounted for 88 per cent。
At the same time, in order to further support the marketing and refinancing of private enterprises, local government-specific steering funds are being used to improve exit mechanisms。
“finance is not just about providing finance, but more about enabling and ecological construction. Through innovative modes of financing, we are working to leverage government equity funds.” zhou zhou, deputy director-general of chongqing's equity investment fund, said that the two new regions had brought together more than 200 firms from up and down the automotive industry chain, had located more than 50 high-tech enterprises and attracted over 500 financial institutions, and diversified financial instruments were promoting resource integration and industrial integration。
The founder of chongqing dynasty co. Ltd., who is engaged in auto-driving research and development, liu xian, said: “it is very much expected that the financial sector will continue to improve the quality of its services and stimulate the dynamism of private sector development through more accurate financial services adapted to the diverse demands of private enterprises.” (reporters wu yu, jinning, lee xiaoting, urhu)
