Recently, the central bank, China Banking and Insurance Regulatory Commission and other financial regulatory authorities have made intensive statements to plan a new round of measures to further increase support for small and medium-sized enterprises. In the next step, prudent monetary policy will maintain reasonable and sufficient liquidity, and structural policies will be further strengthened to increase targeted drip irrigation for small and medium-sized enterprises. The influx of funds from multiple channels such as bank credit and capital markets will accelerate to help small and medium-sized enterprises ease their financial pressure and tide over the difficulties. Experts said that in the future, institutions should accelerate product and service innovation, make full use of technology-enabled platforms for financing docking, explore the application of financial technology in credit access, risk management and other aspects, and effectively improve the coverage of financial services.
Reinforcement of regulatory-intensive vocal policies
The central government’s recent meeting The Politburo meeting proposed that prudent monetary policy should maintain reasonable and sufficient liquidity to help small and medium-sized enterprises and difficult industries continue to recover.
A series of specific deployments have been launched. In terms of financial policy, the central bank’s work conference for the second half of 2021 requires that financial institutions be guided to increase support for key areas and weak links such as small and micro enterprises, “agriculture, rural areas and farmers”, and manufacturing. The China Banking and Insurance Regulatory Commission’s work conference for the second half of the year also stated that it will continue to implement a series of relief policies to improve financial services for weak links in the economy and society, and continuously improve financial services for small and micro enterprises.
Fiscal policy will also be further strengthened. The Ministry of Finance stated that in the next step, it will closely track the macroeconomic situation, consider the needs of assisting enterprises to bail out and develop, further study and improve the problems existing in the implementation of specific policies, continue to stimulate the vitality of market entities, and promote the smooth operation and high-quality development of the economy.
Local levels have also launched deployments and disclosed a new round of support programs for small and medium-sized enterprises. On August 4, Beijing issued the “Action Plan for Further Improving the Financial Service System and Mechanism for Private and Small and Micro Enterprises in Beijing (2021-2023)”, which set the goals of “increment, expansion, and price reduction” for private small and micro enterprise financing in the past three years. , improve the assessment mechanism for commercial banks’ services to small and micro enterprises, supervise the growth rate of inclusive small and micro loans of commercial banks within the jurisdiction to maintain a high level, and supervise the Beijing branches of five large state-owned commercial banks to maintain a stable growth rate of inclusive small and micro loans in 2021 Less than 30%. On August 6, the Shaanxi Provincial Department of Finance allocated 20 million yuan in advance to support 12 financial institutions including the Shaanxi Provincial Branch of China Construction Bank in reducing loan interest rates for small and micro enterprises. Yunnan Province recently announced the “Yunnan Province Small and Medium Enterprises Promotion Regulations”, proposing that special funds for the development of small and medium-sized enterprises will help small and medium-sized enterprises transform and upgrade, technological innovation, open up markets, and support the public service system and financing services of small and medium-sized enterprises through funding, purchasing services, incentives, etc. System.
Multiple channels of capital “blood transfusion” help the development of small and medium-sized enterprises
1 Under the deployment of a series of policies, the influx of funds from multiple sources has accelerated, helping small and medium-sized enterprises to alleviate financial pressure and tide over difficulties.
Vice Minister of Finance Xu Hongcai recently stated that since the beginning of this year, the financial department has further optimized and implemented tax and fee reduction policies to help market entities recover and enhance their vitality. By continuing to implement institutional tax reduction policies, classifying and adjusting periodic tax reduction and fee reduction policies, introducing new structural tax reduction policies, and continuing to implement fee reduction measures, it is expected that the burden on market entities will be reduced by more than 700 billion yuan throughout the year.
At the same time, in order to support the development of the real economy and promote the steady decline of comprehensive financing costs, the People’s Bank of China decided to lower the deposit reserve ratio of financial institutions by 0.5 percentage points on July 15 (not Including financial institutions that have implemented a 5% deposit reserve ratio). The relevant person in charge of the People’s Bank of China stated that this RRR cut is a comprehensive RRR cut, releasing about 1 trillion yuan in long-term funds. The purpose of this RRR cut is to adjust the central bank’s financing structure, effectively increase the long-term stable source of funds for financial institutions to support the real economy, and guide financial institutions to actively use the RRR cut funds to increase support for small and micro enterprises. In fact, with the help of multiple policies, the financing environment for market entities continued to improve in the first half of the year. According to data from the central bank, at the end of June, the balance of inclusive small and micro loans was 17.7 trillion yuan, a year-on-year increase of 31%; it supported 38.3 million small and micro business entities, a year-on-year increase of 29.2%.
There are also frequent actions at the institutional level. Recently, the Industrial and Commercial Bank of China, Bank of China, China CITIC Bank and the Government Procurement Center of the Central Government have reached a strategic cooperation to help small, medium and micro enterprises solve the problem of difficult and expensive financing. It is reported that the two parties will give full play to the complementary advantages of “finance + government affairs”, actively connect the platform’s government procurement data, and provide financing convenience for the platform’s small, medium and micro enterprises. The next step will be to use mature products and systems to connect according to the financing plan, and strive to go online before the end of September and realize loan disbursement before the end of the year.
The role of the capital market will also be further brought into play. Recently, the NEEQ selected layer transfer board listing system has entered the implementation stage. The New Third Board is the “main front” for the capital market to serve small and medium-sized enterprises. Qualified companies on the New Third Board’s selected tiers can transfer listings to the Science and Technology Innovation Board and GEM. The industry pointed out that the implementation of the NEEQ selected layer transfer listing system provides small and medium-sized enterprises with a new path of “financing, trading and listing at the same time”, which is conducive to the capital market and will better empower small and medium-sized enterprises.
Structural policies may strengthen the coverage of financial services
Industry Experts said that to further support the development of small and medium-sized enterprises, we should accelerate product and service innovation in the future and continuously expand financing methods and channels.��
Wang Qing, chief macro analyst of Oriental Jincheng, said that in terms of financial policy, under the comprehensive weighing of multiple objectives, policy interest rates are expected to remain stable in the second half of the year. Next, regulators may rely more on structural policy tools, such as strengthening tax cuts and fee reductions for small and micro enterprises and appropriately expanding the scale of re-loans that are highly inclusive, have low funding interest rates, and have precise investment targets, to increase the impact on the weak national economy. Targeted drip irrigation of key links and key support areas, while adhering to the prudent and neutral tone of monetary policy.
Ren Tao, a distinguished researcher at the National Finance and Development Laboratory, believes that on the one hand, it can be encouraged to improve services for small and micro enterprises through due diligence exemptions, separate credit plans, internal fund transfer pricing concessions, etc. Enterprise enthusiasm and strengthen resource security. On the other hand, we will make full use of technology-enabled platforms for financing docking, and continue to increase first-time loans, renewal loans, credit loans, and medium- and long-term loans. In addition, explore the application of financial technology in customer credit evaluation, credit access, risk management and other aspects to effectively improve the coverage of financial services.
When talking about how to balance risks and support small and micro enterprises, Ren Tao believes that loan guarantee insurance for small and micro enterprises can be further developed, and at the same time support banks, the national financing guarantee fund, and the state The Agricultural Credit Guarantee Alliance cooperates to clarify risk sharing proportions and reduce guarantee fees and corporate financing costs. </p
