Several banks have set up special working mechanisms to support equipment updating

Our reporter Yang Jie

The high-speed operation of manufacturing equipment is supported not only by physical plants, but also by hundreds of millions of yuan hidden behind the scenes.

Promoting a new round of large-scale equipment renewal and consumer goods trade in is a major decision made by the Central Committee of the Communist Party of China with an eye to the overall situation of high-quality development of our country. It is of strategic significance in terms of both the current and long-term benefits, both stabilizing growth and promoting transformation, both benefiting enterprises and people's livelihood. With the transformation of "large-scale equipment update" from policy blueprints and road maps to construction drawings, the mission of the financial industry has become clearer.

According to the reporter of Securities Daily, at present, large state-owned banks, small and medium-sized banks have played a "new" role in finance, actively improved the working mechanism, introduced special measures, and regarded large-scale equipment update as the future key service direction.

Equipment update needs financial assistance

At the Central Economic Work Conference held at the end of last year, it was clearly stated that "we should promote large-scale equipment renewal and consumer goods trade in" by improving technology, energy consumption, emissions and other standards. In February this year, the fourth meeting of the Central Finance and Economic Commission further studied the issue of large-scale equipment renewal and consumer goods trade in. In March, the State Council issued the Action Plan for Promoting Large scale Equipment Renewal and Consumer Goods Trade in (hereinafter referred to as the Action Plan), which defined 20 key tasks in five aspects, and laid the foundation for local governments to follow up specific actions.

　　 Bank of China Fan Ruoying, a researcher of the Research Institute, said in an interview with the Securities Daily that large-scale equipment renewal and consumer goods trade in policies are of great significance to China's economic development in three aspects: first, unleashing domestic demand potential and stabilizing economic growth. Large scale equipment renewal and consumer goods trade in policies are conducive to joint efforts from the investment side of enterprises and the consumer side of residents to promote the growth of domestic demand. Second, promote high-end, intelligent and green development of the industry. Third, improve the quality of life of residents and enhance social welfare.

The Action Plan proposes that "by 2027, the scale of equipment investment in industry, agriculture, construction, transportation, education, culture and tourism, medical care and other fields will increase by more than 25% compared with 2023". In March this year, at the economic theme press conference of the second session of the 14th National People's Congress, Zheng Zhajie, director of the National Development and Reform Commission, said that, taking equipment as an example, last year, China's investment in equipment in key fields such as industry and agriculture was about 4.9 trillion yuan. According to this, the reporter roughly estimated that by 2027, the scale of equipment renewal in key industries will exceed 6 trillion yuan.

Facing such a huge market, financial support is indispensable. So, where does the money come from? Financial support is obviously a must.

In April this year, the People's Bank of China set up science and technology innovation and technology transformation refinancing to encourage and guide financial institutions to increase financial support for technology-based SMEs and key areas of technology transformation and equipment upgrading projects. It is reported that the lending line for scientific and technological innovation and technological transformation is 500 billion yuan, with an interest rate of 1.75%.

From the perspective of operation process, first, financial institutions make independent decisions on whether to grant loans and the conditions for granting loans according to the application of enterprises, the list of alternative enterprises and the list of projects provided by the competent department of the industry, and the principle of taking full responsibility for risks. Then, financial institutions apply to the People's Bank of China for re loans, and the People's Bank of China reviews the loan account. For loans that meet the requirements in the list of alternative enterprises or project lists, 60% of the loan principal will be released to financial institutions for re loans.

stay Guojin Securities Zhao Wei, the chief economist, believes that if the 500 billion yuan of scientific and technological innovation and technological transformation refinancing is used up, it will at least pull more than 830 billion yuan of related credit.

A person from a large and medium-sized bank told the Securities Daily: "The refinancing set up by the People's Bank of China this time mainly provides credit support to small and medium-sized technology-based enterprises in their start-up and growth stages, as well as digital, intelligent, high-end and green technology transformation and equipment upgrading projects in key fields."

Positive actions of commercial banks

In the Action Plan, support for manufacturing equipment upgrading is the top priority. In fact, manufacturing has always been the focus of bank credit support.

This large-scale equipment update puts forward higher requirements for financial institutions' services. On April 26, the People's Bank of China, the National Development and Reform Commission, the Ministry of Finance and the State Financial Supervision and Administration jointly held a meeting to promote the work of large-scale equipment renewal and consumer goods trade in, requiring financial institutions to "strengthen communication with industry competent departments, identify priorities, speed up project docking, and actively meet financing needs in key areas". At present, financial institutions are constantly improving comprehensive financial services, and promoting financial support for large-scale equipment renewal and consumer goods trade in to achieve results.

The reporter of Securities Daily learned from his work that many banks have established an internal working mechanism in terms of scientific and technological innovation and technological transformation and re lending.

"Our bank has responded positively to the policy, and has made preparations for internal coordination and division of labor within the bank, which will be promoted in accordance with the requirements of relevant departments later." The relevant person of one of the above large and medium-sized banks told reporters.

At the same time, financial institutions have increased loans for equipment renewal and technological transformation of enterprises in key areas. The reporter learned that many banks have released relevant work plans and held business promotion meetings to actively publicize national policies, meet the needs of enterprises, and comprehensively promote large-scale equipment renewal and consumer goods trade in.

Equipment renewal brings new opportunities. Since the country launched the policy of supporting equipment renewal, CITIC Bank We attached great importance to the special research of the Head Office Party Committee, put forward our work objectives, clarified our work direction and priorities, and formulated the "CITIC Bank's Financial Support for Large scale Equipment Renewal and Consumer Goods Trade in Work Plan" from five aspects, including improving the working mechanism, strengthening marketing promotion, strengthening supporting policy support, applying for and obtaining support for technology transformation and re lending, and ensuring business compliance and steady development, Put forward 14 specific work measures to support equipment update.

　　 Zheshang Bank The "20 Special Measures to Support Large scale Equipment Renewal and Consumer Goods Trade in" was released to vigorously support the financial needs of manufacturing enterprises, small and micro enterprises and individual businesses in technological transformation and upgrading, equipment renewal and other special scenarios, continue to promote characteristic loan products, and constantly optimize the service model.

The relevant personage of Zheshang Bank said that by the end of 2027, the balance of loans in key areas will increase by more than 30% compared with the end of 2023.

"We regard large-scale equipment renewal as one of the key directions of our future business." The head office asked the branches to actively connect with customers, understand their financing needs in terms of equipment renewal, technical transformation and other aspects, and actively provide credit support, said the relevant person in charge of the Corporate Finance Department of CITIC Bank.

At present, some banks have implemented support for large-scale equipment update, promoted the elimination of outdated equipment with financial force, and continuously improved the ability and quality efficiency of financial support for large-scale equipment update.

In order to support more small and medium-sized enterprises to embark on the road of technological transformation, bank for economic construction Huizhou Branch of Guangdong Province actively visited the industrial park and provided financial support to manufacturing enterprises with large investment in technology and equipment and insufficient guarantee by using the credit advantage of "technology transformation loan" products. By the end of April this year, the bank's technical transformation project credit coverage exceeded 10 households, and the loan balance exceeded 200 million yuan.

In Fan Ruoying's view, next, financial institutions need to increase support for equipment renewal and consumer goods trade in. First, make full use of monetary policy tools such as central bank re lending, optimize the allocation of credit resources, improve the efficiency of resource allocation, and actively meet the financing needs of key areas. Second, actively innovate financial products and services, launch targeted and more flexible credit products according to the characteristic financial needs of enterprises in the process of equipment renewal, and provide more efficient services to enterprises in terms of capital lines, deadlines, etc. Third, improve comprehensive financial services, design and improve consumer credit products for new scenarios in the policy implementation process, and actively cooperate with production enterprises and platform enterprises to improve consumers' access to relevant financial services.