Xinhua All Media+| Leading Finance to Live Water and Nourish the Real Economy - Financial Support for Economic Development Frontline Observation and Precision Control | Energy | Economy

Finance is the lifeblood of economic development. Recently, Xinhua News Agency reporters conducted in-depth research in multiple areas and truly felt that financial support for stable growth continues to increase, providing strong support for the steady recovery of the real economy and moving towards high-quality development.

Real gold and silver add impetus to the development of enterprises

In Jiangsu, Suzhou Jingkong Energy Technology Co., Ltd. is accelerating construction of a new industrial base covering over 30 acres. "After the new production line is put into operation next year, the company's annual production capacity will nearly double. Based on the domestic market, we will increase our efforts to explore overseas markets," said the company's chairman, Shi Agile.

Anji Jiuda Furniture Co., Ltd., which has been mainly engaged in foreign trade business for many years, plans to open up the domestic market this year through live streaming sales and other means.

The picture shows the feeding of the battery sorting machine by Suzhou Jingkong Energy Technology Co., Ltd. Photo by Xinhua News Agency reporter Li Yanxia

During the research, the reporter felt that whether it is the precision controlled energy seeking to go global or the Jiuda Furniture embracing the domestic market, the vitality of the real economy and the driving force for enterprise development are constantly accumulating. Behind this, we cannot do without the power of finance: Jingkong Energy, with its rapidly growing orders, has obtained a comprehensive credit of 250 million yuan from Agricultural Bank of China Jiangsu Branch, while Jiuda Furniture has obtained a loan fund of 1 million yuan from Agricultural Bank of China Huzhou Branch's innovative "Green Inclusive Loan"

With the successive introduction of a series of financial policies to stabilize growth and market entities, the sense of obtaining financing for enterprises continues to increase. Since the beginning of this year, the People's Bank of China has fully played the precise guiding role of structural monetary policy, strengthened support for key areas and weak links of the national economy. In the first five months of this year, China's RMB loans increased by approximately 12.7 trillion yuan. As of the end of March, the balance of 17 structural monetary policy instruments was approximately 6.8 trillion yuan.

"The investment in water engineering projects is large and the promotion time is tight, making it difficult to raise capital in a short period of time. With the support of policy oriented development financial instruments, the Agricultural Bank of China Dongguan Branch provided 35.83 million yuan to solve the problem of project capital, pressing the 'acceleration key' for the start of the third phase construction of Humen Ningzhou Sewage Treatment Plant." said Cai Yongquan, Deputy General Manager of Dongguan Water Group Co., Ltd. in Guangdong Province.

Financial innovation empowers high-quality development of enterprises

In May of this year, Agricultural Bank of China Suzhou Branch, in conjunction with the Yangtze River Delta Technology Element Trading Center and Shanghai Technology Exchange, provided Laitekang Biopharmaceutical Co., Ltd. with a pledge financing of 10 million yuan for biopharmaceutical pipelines.

During the investigation, the reporter found that targeting the trend of economic transformation and high-quality development, technology finance, green finance, etc. are becoming the main driving forces to support the real economy.

From ultra precision film mounting technology to vacuum film mounting technology, and then to maskless lithography technology... Dongguan Siwo Intelligent Equipment Co., Ltd.'s technological breakthroughs are inseparable from financial support. In the first quarter of this year, with the help of the People's Bank of China's small and medium-sized loan policy tool, Dongguan Bank issued a loan of 5 million yuan to Siwo Intelligent to meet the funding needs of enterprises in product research and production. "The cost of independent research and development is high and the cycle is long. Fortunately, there is bank support on the development path, which has helped us break through core technology breakthroughs," said Wang Jianxun, the chairman of the company.

"Promoting the transformation and upgrading of traditional industries is not simply about exiting low-end industries, but about using financial resources to support green development of enterprises." Chen Fu, President of the Shaoxing Keqiao Branch of Agricultural Bank of China, told reporters that the bank has pledged pollution discharge rights and provided a loan of 190 million yuan to Zhejiang Yingfeng Technology Co., Ltd.

The constantly emerging innovative credit models, such as advanced manufacturing loans, industrial park loans, green and high-quality manufacturing loans, and specialized and innovative small giant loans, provide support for the high-quality development of enterprises.

Behind product innovation lies mechanism innovation. "The value judgment and risk identification of science and technology innovation enterprises are different from ordinary enterprises. We form a professional science and technology innovation team, innovate a professional evaluation mechanism, and enable professionals to do professional things and better understand science and technology innovation enterprises," said the person in charge of the Science and Technology Innovation Center of the Suzhou Branch of Agricultural Bank of China.

Optimizing financing environment to alleviate pain points for enterprises

With the gradual recovery of the luggage industry this year, the export volume of Xinxiu Group in Pinghu City, Zhejiang Province increased by more than 20% year-on-year.

"With the support of the government, we have seized the opportunity to increase orders and expand the market, and have obtained multiple tangible overseas orders." The relevant person in charge of Xinxiu Group said that improving the competitiveness and risk resistance of the enterprise not only depends on the enterprise itself, but also requires the support of financial institutions.

The picture shows the staff of Xinxiu Group conducting inspections on luggage. Photo by Xinhua News Agency reporter Li Yanxia

The relevant person in charge of the International Finance Department of Agricultural Bank of China Zhejiang Branch stated that the bank has increased its credit investment to provide support for foreign trade enterprises in increasing orders and protecting the market. In the first five months of this year, export credit insurance financing increased by 40% year-on-year.

We need to add icing on the cake, but also give charcoal in the snow. The reporter found that under the pressure of economic downturn, many banks are providing more support for enterprises to recover and improve by relaxing loan conditions and lowering loan interest rates.

Creating a favorable financing environment requires mutual efforts from both enterprises and financial institutions. The reporter observed that the current financing needs of enterprises are more rational, cost-effective, and do not blindly increase financial burden.

For financing support, enterprises still have more expectations. The People's Bank of China stated that it will establish a system and mechanism for effectively supporting the real economy through finance, implement the action plan to increase support for financing of technology-based enterprises, guide financial institutions to increase medium - and long-term loans in the manufacturing industry, and support the acceleration of the construction of a modern industrial system.