Strong financial support boosts corporate confidence (entering the market to see confidence) Development | Innovation | Enterprises

"With more data, financing is more convenient." said Wang Hengao, General Manager of Liaoning Dalian Hengbao Sida Technology Development Co., Ltd. At the beginning of the year, the company encountered difficulties in capital turnover and submitted a loan application on the Dalian Xinyi Loan platform. Through the platform, the bank sorted out the company's data on water and electricity expenses, five insurances and one fund, and quickly issued a credit loan of 2 million yuan to the enterprise, ensuring the normal operation of production.

At Chongqing Wanggeng Machinery Manufacturing Co., Ltd., a batch of exported agricultural machinery accessories are ready for shipment. "With the export credit insurance policy, we can also apply for loans. The thoughtful financial services have created conditions for us to focus on our main business and develop new products," said the relevant person in charge of the company.

The meeting pointed out, "Give full play to the role of aggregate and structural monetary policy tools, and vigorously support technological innovation, real economy, and the development of small and medium-sized enterprises."

Since the beginning of this year, the prudent monetary policy has been precise and effective, with reasonable and sufficient liquidity, continuous optimization of credit structure, and continuous strengthening of financial support for the economy. With the assistance of financial services, the operating entity strengthens its confidence, strengthens its momentum, adheres to its main business, strengthens its industry, and takes the path of high-quality development.

Reduce costs and provide strong protection, relieving the urgent difficulties and anxieties of business entities

A series of financial policy measures have been implemented to address the urgent and difficult issues faced by various business entities, effectively boosting market confidence.

——Give full play to the dual functions of total quantity and structure, and promote the stable and moderate reduction of financing costs for operating entities.

"With the support of the technology innovation refinancing policy, banks provide us with interest rate preferential loans, which gives enterprises more confidence in increasing investment in research and development innovation," said Chen Xiangqi, the person in charge of Zhongqingrui Environmental Technology Co., Ltd.

"Before the summer harvest, with the support of're loans+agricultural machinery loans', I purchased several agricultural machinery, which came in great use when rushing to harvest grain," said Sun Wei, a grain grower in Guozhuang Town, Jurong City, Jiangsu Province.

Structural monetary policy tools focus on key areas and increase support for inclusive finance, technological innovation, green development, and other areas. According to data from the People's Bank of China, the support tools for inclusive small and micro loans have provided a total of 39.8 billion yuan to local legal person financial institutions, supporting an increase of 2.2 trillion yuan in inclusive small and micro loans. On June 30th, the People's Bank of China decided to increase the loan and rediscount quota for agriculture and small businesses by 200 billion yuan.

The formation and transmission mechanism of market-oriented interest rates continues to improve, promoting the stable and moderate reduction of financing costs for enterprises. In the first half of the year, the market quoted interest rates for loans with a maturity of 1 year and more decreased by 10 basis points. The weighted average interest rate for newly issued corporate loans was 3.96%, 25 basis points lower than the same period last year.

"Promoting the reduction of financing costs in the real economy, effectively supporting the expansion of demand potential, and promoting the vitality of business entities," said Zeng Gang, director of the Shanghai Finance and Development Laboratory.

——Relieve financial difficulties for enterprises and better ensure their cash flow.

Accurately connecting with the needs of enterprises, the financial field is constantly undergoing new practices.

"The company has won the bid for the rural road project in Yongchuan District, Chongqing. As usual, a deposit of over 200000 yuan needs to be paid before the start of construction. Now, the local government is implementing performance guarantee insurance, with a premium amount of less than 30000 yuan, which greatly reduces our financial pressure." said Huang Hui, Deputy Chief Engineer of Tianjin Oberwei Co., Ltd. In the first half of the year, Chongqing issued a total of 22600 engineering guarantees, reducing the capital occupation of operating entities by 14.485 billion yuan.

At the beginning of this year, the National Development and Reform Commission and other departments issued a notice encouraging bidders to accept non cash transaction guarantees such as guarantees from guarantee institutions and insurance policies from insurance institutions to pay bid security, performance security, and engineering quality security. "This is conducive to reducing the occupation of project construction funds and better stimulating the production enthusiasm of enterprises," said Wang Xiangnan, Deputy Director of the Insurance and Economic Development Research Center of the Chinese Academy of Social Sciences.

——Resolve production and operational risks, and safeguard the steady development of enterprises.

Delong Zhizao Technology Park is an upgraded village level industrial park in Foshan, Guangdong Province, with a focus on introducing innovative enterprises such as smart home appliances and new materials. Ping An Property and Casualty Insurance provides "insurance+technology+services" risk reduction services for the park, builds a network perception system, and monitors safety production risks and hidden dangers in real time through IoT devices such as thermal infrared cameras and sound and light alarms. "The production and operation of enterprises in the park are more guaranteed," said Feng Jingyuan, the person in charge of the park.

Building a new model of risk reduction services for the insurance industry, increasing support for exchange rate risk management for small and medium-sized enterprises, and implementing financing guarantee, fee reduction, reward and subsidy policies for small and micro enterprises... Financial policies continue to exert efforts to help the majority of business entities "move forward lightly" and "accelerate" on the path of high-quality development.

Many business operators have expressed that the expansion and upgrading of preferential policies for enterprises reflect the consistent determination of the state to encourage, support, and guide the development of private enterprises, making enterprises more confident and motivated.

Assisting innovation and promoting transformation, promoting business entities to reach new heights

Implementing the requirements of the innovation driven development strategy, the financial industry will come up with real solutions and connect with the financial needs of business entities based on innovative development.

——Innovate credit models to help small and micro enterprises transform their intellectual property into assets and credit into real money.

"Green finance has opened the door to credit loans for enterprises," said Li Xuejun, Chairman of Shanghai Smart Rental IoT Technology Co., Ltd. Banks tailor risk control models and financial loan plans for enterprises, helping them accelerate innovation in the field of battery swapping.

"Intellectual property pledge financing services have helped us transform patents into funds, meeting the financing needs of upgrading production lines, developing new products, and exploring new markets," said Zhang Xiping, the person in charge of Zhongshan Shousheng Electrical Appliance Co., Ltd. in Guangdong Province.

Strengthen the mining and application of credit information for small and micro enterprises, and increase the investment of credit loans; At the beginning of this year, the financial management department issued a notice to guide financial institutions to enhance the quality of financial services for small and micro enterprises, promote innovative development of small and micro business entities, and better stimulate market vitality and endogenous development momentum.

Small and micro enterprises and private enterprises achieve "quantity increase, area expansion, and price reduction" in financing. According to data released by the State Administration for Financial Supervision and Administration, in the first half of the year, inclusive small and micro enterprise loans increased by 3.8 trillion yuan. As of the end of June, the balance of loans for inclusive small and micro enterprises was 27.37 trillion yuan, and there were 41.1512 million customers with loan balances.

——Strengthen the application of technology and provide more funds to nourish the fields of agriculture, rural areas, and farmers.

"The 'Planting Loan' can be borrowed and repaid on mobile phones, making it flexible and convenient," said Zeng Zhihui, a Huangjing planter in Shichongkou Town, Xinhua County, Hunan Province.

Huangjing planting and processing is a characteristic industry of Xinhua County. In order to promote the effective connection between consolidating and expanding the achievements of poverty alleviation and rural revitalization, local departments and banks have collaborated to develop service plans, using online services to help Huangjing farmers achieve "instant approval, instant loan, and instant repayment".

The notice issued at the beginning of the year on the key work of comprehensively promoting rural revitalization in the banking and insurance industry in 2023 proposed that banking and insurance institutions should increase their efforts in technology application, improve their level of digital and information services, and actively respond to public demands. Various regions and institutions actively strengthen the application of technology, improve the quality and efficiency of financial services in rural areas, and more and more funds are flowing into the fields of agriculture, rural areas, and farmers, helping rural production and operation entities to grow together.

——Smooth industrial and supply chains, adding impetus to transformation and upgrading.

Shoes and clothing are important industries in Quanzhou City, Fujian Province. Local efforts are being made to strengthen industrial chain management and accelerate industrial transformation and upgrading. Industrial Bank Quanzhou Branch collaborates with Fujian Yipinjia Yunchuang Information Technology Co., Ltd., a local shoe and clothing enterprise supply chain management service provider, to establish exclusive supply chain financial services based on order data from upstream and downstream enterprises. As of the end of June, there were a total of 28 small and micro customers on the service platform, with a credit amount of 130 million yuan.

"This service solves the financing problem for small and micro suppliers, is conducive to the stability of the local footwear and clothing industry supply chain, and helps promote smooth connection of various links in the industry chain," said the relevant person in charge of Yipin Jiayunchuang.

"Small and micro enterprises with a large quantity and wide scope play an important role in the industrial and supply chain. With supply chain finance as the starting point, it can not only provide precise support for more enterprises with real needs, but also promote the coordinated development of the upstream and downstream of the industrial chain, and enhance development momentum." said Dong Ximiao, Chief Researcher of Zhaopin.

Expand consumption circulation and help business entities open up greater market space

During this year's lychee harvest season, the Dongguan Rural Revitalization Promotion Association in Guangdong Province and local insurance institutions jointly organized a public welfare agricultural cooperative sales activity. Leveraging the platform resources and customer scale advantages of insurance institutions, special varieties of lychees such as Guiwei, Nuomici, and Xianjinfeng were delivered from the fields to thousands of households through live streaming sales and other forms.

The brightly lit night market is bustling with people. The Chaoliu Street Night Market in Xiangyuan Street, Jin'an District, Fuzhou City, Fujian Province is quite popular, with over 100 specialty small shops attracting visitors to check in. Fuzhou Rural Commercial Bank has set up "financial service booths" near the night market, providing "new citizens" with characteristic credit loans, backend management support and other financial services, and boosting the "night economy".

Boosting consumer confidence and stimulating consumer potential, finance is working together on both supply and demand sides.

Since the beginning of this year, efforts have been made to restore and enhance the supply capacity of service industries such as supermarkets and cultural tourism. Various regions and departments have introduced a series of financial support policies. Guangxi has proposed that banking institutions should make good use of financial policies such as "Gui Hui Dai" to benefit enterprises, effectively increase targeted fee reduction and profitability, and strengthen credit support for service industries such as catering and accommodation, cultural tourism, and healthcare; Jiangsu promotes banks and insurance institutions to actively connect with financial needs such as chain commercial circulation enterprises and large supermarkets, provide specialized financial support for rural areas, and further expand rural consumption space.

The National Development and Reform Commission and other departments recently released several measures to promote automobile consumption, proposing to increase credit support for automobile consumption and encourage financial institutions to reasonably determine the down payment ratio, loan interest rate, and repayment period under the premise of compliance with the law and controllable risks. Multiple financial institutions have stated that they will further actively explore the credit needs of residents for new energy vehicles, provide diversified automotive financial services, assist in green travel, and promote green consumption.

Interest free installment payments, large discounts, and double points... With the overall recovery of consumption, many banks have launched various credit card promotion activities on e-commerce platforms this year, further activating consumption potential.

In the first half of the year, the reasonable growth of resident loans helped to steadily recover consumption. At the end of June, credit card, automobile, and other comprehensive consumer loans increased by over 710 billion yuan compared to the beginning of the year.

"Optimizing supply in finance, strengthening services, promoting market vitality recovery, promoting both supply and demand, and promoting a smoother economic cycle will open up greater market space for the vast number of business entities," said Dong Ximiao.