On November 27, the People's Bank of China, the General Administration of Financial Supervision, the CSRC and other eight departments jointly issued the Notice on Strengthening Financial Support Measures to Promote the Development and Growth of Private Economy (hereinafter referred to as the Notice), proposing 25 specific measures to support private economy.
"In recent years, through deepening the reform of the financial industry and issuing targeted policies and measures, China has continued to increase the support for private enterprises, with obvious results. However, some private enterprises still face the problem of operating pressure, and private enterprises still need to be 'helped and sent'. In addition, supporting the development of private enterprises is a systematic project, which needs to strengthen multi sector policy coordination." Zhou Maohua, macro researcher of the financial market department of Everbright Bank, told the Securities Daily that the eight departments jointly issued 25 targeted policies and measures this time, which will inject strong impetus into the development of private enterprises and boost market confidence.
Don't blindly stop, hold back, withdraw or cut off loans
The Notice clarifies the objectives and priorities of financial services for private enterprises. In terms of total amount, we will increase financial support for private enterprises and gradually increase the proportion of private enterprises' loans by formulating annual service objectives for private enterprises and improving the weight of relevant businesses serving private enterprises in performance appraisal. Structurally, we will increase support for key areas such as scientific and technological innovation, "specialization and innovation", green low-carbon, industrial foundation reconstruction projects, as well as private small and medium-sized micro enterprises.
Wang Qing, the chief macro analyst of Oriental Jincheng, said that it is necessary to continue to increase the policy support for private small and micro enterprises, among which promoting financial resources to tilt towards private small and micro enterprises is an important policy driving force. It is expected that the year-on-year growth rate of loan balance of inclusive small and micro enterprises will continue to be more than 20% in the future.
The Notice stressed that financial institutions in the banking industry should increase support for initial loans and credit loans, actively carry out financial services in the supply chain of the industrial chain, take the initiative to do a good job in the capital continuation services of private enterprises, not blindly stop lending, squeeze lending, draw loans, and break loans, while doing a good job in promoting development and preventing risks.
It is worth mentioning that in terms of financing of real estate enterprises, the Notice proposed that "we should implement policies such as the Notice on Doing a Good Job in Current Financial Support for the Steady and Healthy Development of the Real Estate Market, maintain the stability of key financing channels such as credit and bonds, and reasonably meet the financial needs of private real estate enterprises".
Recently, credit support for private real estate enterprises has continued to grow. Wang Qing predicted that at the end of this year and the beginning of next year, the bank will effectively increase the credit supply to private real estate enterprises, which will strongly support the delivery guarantee. More importantly, it will ease the liquidity pressure of real estate enterprises at the end of the year, play a role in stabilizing social expectations and boosting market confidence.
Expand the scale of equity financing of high-quality private enterprises
The Notice stressed that we should deepen the construction of the bond market system and unblock the bond financing channels of private enterprises. It is mentioned that we should optimize the registration mechanism of private enterprise debt financing tools, give full play to the role of private enterprise bond financing support tools, and expand the scale of private enterprise bond financing. Encourage and guide institutional investors to actively and scientifically allocate private enterprise bonds and increase investment in private enterprise bonds.
Wang Qing believes that the Notice has made a more comprehensive and systematic arrangement for unblocking private enterprise bond financing channels, including "giving full play to the role of private enterprise bond financing support tools", "increasing investment in private enterprise bonds", "exploring and developing the high-yield bond market" and other measures. In particular, "exploring and developing the high-yield bond market" can really reduce the threshold for private enterprise bond financing, alleviate the "asset shortage" of financial institutions under the principle of matching risk and return, and promote the effective allocation of financial resources in a market-oriented manner.
"However, it will take some time to cultivate the market. At present, we can also try to directly support private small and micro enterprises to issue bonds and finance through guarantees provided by government financing guarantee institutions at all levels. This is not only a supplement to the existing credit enhancement tools for private enterprise bond financing, but also can effectively expand the scale of private enterprise bond financing in the short term." Wang Qing said.
At the same time, the Notice emphasizes that we should better play the role of multi-level capital market and expand the scale of equity financing of high-quality private enterprises. It clearly proposes to support private enterprises' listing financing and M&A restructuring, strengthen the regional equity market's support services for private enterprises, and play the role of equity investment funds in supporting private enterprises' financing.
Chen Li, chief economist of Sichuan Finance Securities, believes that to support private enterprises' listing and financing, it is mainly from the perspective of capital services for the real economy, to further play the advantages of the comprehensive registration system, to open up the last blockages in the capital chain for private enterprises, and to gather the strength of the capital market in many ways to help such enterprises become better and stronger.
Strengthen the financial carrying capacity of private economy
The Notice stressed that we should increase foreign exchange facilitation policies and service supply, and support private enterprises to "go global" and "bring in". It was mentioned that banking financial institutions should be encouraged to carry out cross-border RMB "first account" expansion, expand the pilot scope of cross-border financing facilitation for high-tech and "specialized and innovative" SMEs, continue to innovate the application scenarios of cross-border financial service platforms, expand the coverage, and provide online and convenient financing and settlement services for private enterprises.
The Notice proposes to comprehensively use monetary policy tools, financial incentives, insurance guarantees and other measures to enhance the enthusiasm of financial institutions to serve the private economy.
The Notice also emphasized that we should optimize the supporting financing policies and enhance the financial carrying capacity of the private economy. And clearly put forward five measures, including improving the credit incentive and constraint mechanism, improving the risk sharing and compensation mechanism, improving the credit constraint mechanism of the bill market, strengthening the right confirmation of accounts receivable, and increasing the tax policy support.
In the opinion of Dong Ximiao, the chief researcher of China Merchants Association, private enterprises are generally short of data, credit and guarantee. To this end, we should further establish and improve the mechanism of responsibility sharing and loss sharing among enterprises, banks and governments. For example, we should constantly improve the government led financing guarantee system, especially the credit guarantee system of private enterprises, establish a risk compensation fund for private enterprises, and reduce the impact of the "three deficiencies" of private enterprises on financing. At the same time, the guarantee rate was gradually reduced. And give full play to the role of FinTech in private enterprise financing, on the one hand, make up for the lack of corporate credit data, on the other hand, improve the quality and efficiency of financial services.
In addition, the Notice stressed that financial institutions should strengthen publicity and interpretation, and actively push financial support policies, financial products and service information to private enterprises. Local financial management, development and reform, industry and information technology, finance and taxation, federation of industry and commerce and other departments strengthened communication and coordination, strengthened supervision and guidance, and improved policy effectiveness.
Wang Qing said that the next priority will be to strengthen implementation, especially to increase coordination between financial departments and financial institutions.
