On February 15, 2019, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council recently issued "Several Opinions on Strengthening Financial Services for Private Enterprises", and issued a notice requesting all regions and departments to conscientiously implement them based on actual conditions. The full text is as follows:
Several Opinions on Strengthening Financial Services for Private Enterprises
The private economy is an important component of the socialist market economy, and plays an irreplaceable role in stabilizing growth, promoting innovation, increasing employment, and improving people's livelihood. The Party Central Committee and the State Council have always attached great importance to the work of providing financial services to private enterprises. Various regions, departments, and financial institutions have conscientiously implemented and introduced measures to actively support the financing of private enterprises, achieving certain results. However, the problem of difficult and expensive financing for some private enterprises remains prominent. In order to thoroughly implement the decisions and arrangements of the Party Central Committee and the State Council, and effectively strengthen financial services for private enterprises, the following opinions are proposed.
1、 General requirements
（1） Guiding ideology. Support and guide the development of the non-public sector of the economy, treat enterprises of all types of ownership equally, effectively alleviate the difficulty and high cost of financing for private enterprises, enhance the vitality of micro entities, give full play to the important supporting role of private enterprises in economic growth and job creation, and promote stable and healthy economic and social development.
（2） Basic principles
——Fairness and fairness. Adhere to the principle of treating all types of ownership economies equally, eliminate various hidden barriers to the private economy, continuously deepen financial reform, improve the financial service system, promote a better match between the allocation of financial resources and the role played by the private economy in the national economy in accordance with the principles of marketization and rule of law, and ensure that all types of ownership economies participate in market competition fairly in accordance with the law.
——Focus on difficult points. Adhere to the problem orientation, strive to dredge the monetary policy transmission mechanism, focus on solving the problem of financial institutions being "afraid to lend, unwilling to lend, and unable to lend" to private enterprises, enhance the awareness and ability of financial institutions to serve private enterprises, especially small and micro enterprises, expand effective financial supply to private enterprises, improve rescue policies and measures for private enterprises, support the sustained and healthy development of private enterprises, and promote the realization of the "six stability" goal.
——Responsibility for compaction. The financial management department should earnestly assume the responsibility of supervision and guidance, and the financial department should give full play to the role of fiscal and tax policies and fulfill the responsibilities of state-owned financial capital contributors. All relevant departments should strengthen policy support, urge and guide financial institutions to continuously strengthen and improve financial services for private enterprises. The governments of all provinces (autonomous regions, municipalities directly under the Central Government) should conscientiously implement their territorial management responsibilities and take measures in accordance with local conditions to further improve the level of private enterprises in financial services in their respective regions. Financial institutions should earnestly fulfill their responsibilities as the first responsible person for serving private enterprises, so that private enterprises have a real sense of gain.
——Treat both symptoms and symptoms. While effectively alleviating current financing pain points and bottlenecks, accurately analyze the institutional and structural reasons behind the difficulty and high cost of financing for private enterprises, focus on optimizing structural institutional arrangements, establish and improve long-term mechanisms, and continuously improve the quality and efficiency of financial services for private enterprises.
（3） Main objectives. Through comprehensive implementation of policies, we have achieved equal treatment for all types of ownership enterprises in terms of financing, ensured that financial services for private enterprises have been effectively improved, the financing scale has steadily expanded, financing efficiency has significantly improved, financing costs have gradually decreased and stabilized at a reasonable level, and the problem of difficult and expensive financing for private enterprises, especially small and micro enterprises, has been effectively alleviated, fully stimulating the vitality and creativity of the private economy.
2、 Increase financial policy support and focus on improving the pertinence and effectiveness of financial services for private enterprises
（4） Implement differentiated monetary and credit support policies. Reasonably adjust the macro prudential evaluation parameters of commercial banks, and encourage financial institutions to increase credit lending to private enterprises, small and micro enterprises. We will improve the targeted reduction of reserve requirements for inclusive finance. Increase the amount of re loans and rediscounts, and extend the policy of re loans and rediscounts to eligible financial institutions, including private banks. Increase support for private enterprise bill financing, simplify the discount business process, improve the efficiency of discount financing, and handle rediscount in a timely manner. We will accelerate the introduction of regulations on non deposit lending organizations. Support the development of small and medium-sized banks such as private banks and other local corporate banks, and accelerate the construction of a financial service system that matches the needs of private small and medium-sized enterprises. Deepen the pilot project of joint credit extension, and encourage banks to establish medium - and long-term bank enterprise relationships with private enterprises.
（5） Increase direct financing support. Actively support qualified private enterprises to expand direct financing. Improve the stock issuance and refinancing system, and accelerate the review process of initial public offerings and refinancing of private enterprises. Deepen the reform of the M&A and restructuring system and mechanism of listed companies. Research and expand the scope of application and issuance scale of targeted convertible bonds based on the reasonable demands of private enterprises. We will expand trials of innovative and entrepreneurial bonds, and support private enterprises that are not listed or unlisted to issue private equity convertible bonds. Quickly promote the establishment of a science and technology innovation board and pilot registration system in the Shanghai Stock Exchange. Steadily promote the reform of the issuance and trading system of the New Third Board, and promote the New Third Board to become an important platform for financing innovative private small and medium-sized enterprises. We will support the issuance of private enterprise bonds and encourage financial institutions to increase their investment in private enterprise bonds.
（6） Improve the ability of financial institutions to serve the real economy. Support financial institutions to supplement capital through the capital market. Accelerate the innovation of commercial banks' capital replenishment bond tools, and support the issuance of innovative tools such as open-ended capital bonds and convertible tier 2 capital bonds to supplement capital. Conduct countercyclical adjustments to commercial banks' reserve capital from a macro prudential perspective. Regarding the quality and scale of financing services for private enterprises and small and micro enterprises as important considerations for issuing stocks by small and medium-sized commercial banks. We will study the elimination of industry scope restrictions on financial equity investment with insurance funds, and standardize the implementation of strategic equity investment. Focus on the financing and credit enhancement of private enterprises, and increase the coverage of credit insurance and bond credit enhancement institutions. Guide and support banks to accelerate the disposal of non performing assets, and focus on investing activated funds in private enterprises.
3、 Strengthen the construction of financing service infrastructure, and strive to solve problems such as asymmetric information and insufficient credit of private enterprises
（7） Grasp the construction of information service platforms from a strategic perspective. Open relevant information resources according to law and promote data sharing on the premise of ensuring information security. Relying on the national data sharing and exchange platform system, local governments should quickly build and improve big data service platforms such as finance, taxation, market supervision, social security, customs, and justice, to achieve cross level, cross department, and cross regional connectivity. Improve and optimize the information docking mechanism between financial institutions and private enterprises, achieve efficient online docking between fund supply and demand, enable information to "run more", and enable enterprises to "run less". Develop various credit service institutions and encourage the development and innovation of credit service products. Support credit agencies and credit rating agencies in providing credit products and services to private enterprises using public information. We will increase incentives to keep promises and punish those who break them.
（8） Adopt various ways to improve the local credit enhancement system. Give play to the leading role of the national financing guarantee fund, and promote the construction of local government financing guarantee systems and business cooperation. Government funded financing guarantee institutions should adhere to the quasi public positioning, not for profit making purposes, gradually reduce requirements such as counter guarantees, and cancel counter guarantees for eligible ones. For commercial banks with fast growth in loan scale and high proportion of households for private enterprises and small and micro enterprises, risk sharing ratio and loan cooperation quota can be increased. Encourage the establishment of special funds, guidance funds, or credit guarantee funds for loan risk compensation for private enterprises and small and micro enterprises in places where conditions permit, with a focus on providing credit enhancement services for initial loans, reloans, and renewal loans. Research and explore the access of financing guarantee companies to the credit reporting system of the People's Bank of China.
（9） Actively promote the standardized development of various local equity financing. Actively cultivate early investment forces such as angel investment and venture capital that invest in private scientific and technological innovation enterprises, and quickly improve tax policies that further support the development of venture capital funds. Standardize the development of regional equity markets, and build a diversified financing, multi-level and segmented equity financing market. Encourage local governments to vigorously carry out equity financing guidance and training for private enterprises.
4、 Improve performance appraisal and incentive mechanisms, and strive to unblock financing bottlenecks in private enterprises
（10） Quickly establish a long-term mechanism of "daring to lend, willing to lend, and able to lend". Commercial banks should promote grassroots branches to sink their work focus and enhance their endogenous motivation to serve private enterprises. Improve the internal performance appraisal mechanism as soon as possible, establish annual service goals for private enterprises, and increase positive incentives. For branches and related personnel serving private enterprises, the focus is on comprehensive assessment of the number of enterprises they serve and the credit quality. Establish and improve the due diligence exemption mechanism to improve the tolerance of non-performing loan assessment. Establish internal accountability and complaint channels to provide mechanism protection for due diligence and exemption. Any unreasonable conditions such as transferring loans to deposits shall not be attached to the credit extension. Once relevant violations are verified, they shall be dealt with seriously. Strictly crack down on acts such as forced rebates in the financial and credit fields, and promptly transfer institutions and individuals suspected of committing crimes to judicial and other relevant authorities for investigation and punishment according to law.
（11） Effectively improve the availability of financing for private enterprises. Among the newly issued corporate loans, the proportion of private enterprise loans should be further increased. "In the approval of loans, it is not allowed to impose discriminatory requirements on private enterprises. Under the same conditions, the loan interest rates and loan conditions of private enterprises and state-owned enterprises should be consistent.". The financial supervision department implements differentiated assessment based on legal entities, forming an assessment mechanism that emphasizes both the number of loan accounts and the amount of loans. If any data falsification is found, relevant institutions and responsible personnel shall be seriously dealt with in accordance with the law. Large state-owned holding commercial banks should take the initiative to strengthen the construction of inclusive finance business units, implement special credit policies in the field of inclusive finance, improve the special evaluation mechanism and performance evaluation system for inclusive finance business, and actively play the role of "leading geese" in improving the availability of financing and the level of financial services for private enterprises.
（12） Reduce excessive reliance on mortgage guarantees. Commercial banks should adhere to reviewing the primary source of repayment, take outstanding main businesses, sound financial performance, and good credit standing of major shareholders and actual controllers as the main basis for credit extension, and reasonably increase the proportion of credit loans. Commercial banks should rely on the credit of core enterprises in the industrial chain, real transaction background, and closed-loop logistics, information flow, and capital flow to provide upstream and downstream enterprises with order financing, accounts receivable and payable financing without collateral guarantees.
（13） Improve loan demand response speed and approval timeliness. Commercial banks should actively use financial technology to support risk assessment and credit decision-making, and improve the efficiency of credit approval. If there is a demand for renewal of loans upon maturity, commercial banks should proactively connect in advance. Encourage commercial banks to conduct online approval operations, and each commercial bank should delegate the approval authority for a certain amount of credit business to its branches based on its own actual situation; If centralized approval is really necessary, it is necessary to clarify the internal time limit and improve the timeliness.
（14） Strengthen the sustainability of private enterprises in financial services. Commercial banks should abide by economic and financial laws, operate prudently in accordance with laws and regulations, scientifically set up credit plans, and refrain from organizing mobile credit facilities. Improve the credit risk management and control mechanism, continuously improve data governance, customer rating, and loan risk pricing capabilities, strengthen penetration risk management throughout the entire life cycle of loans, and increase support for private enterprises on the premise of effective risk prevention. Strengthen the management of low-cost fund use under preferential policies, strictly monitor the flow of funds, prevent interception, misappropriation, or even transfer arbitrage by individual institutions or individuals, and effectively prevent moral hazard. Strengthen financial supervision and guidance, and properly handle the relationship between supporting the development of private enterprises and preventing financial risks.
5、 Actively support the financing and rescue of private enterprises, strive to resolve liquidity risks and effectively safeguard the legitimate rights and interests of enterprises
（15） Helping enterprises facing risk events extricate themselves from difficulties from reality. Accelerate the implementation of bond financing support tools for private enterprises and the securities industry's plan to support the development of collective asset management for private enterprises. Research and support equity financing for private enterprises, and encourage qualified private fund managers to initiate the establishment of private enterprise development support funds. Support institutions such as private equity funds that have passed regulatory approval for asset management products and insurance funds in accordance with the law to participate in resolving the risk of stock pledge of private listed companies. For private enterprises experiencing temporary difficulties, financial institutions should treat them differently based on the principles of marketization and rule of law, and take classified measures to support their disposal.
（16） We will accelerate the clearing up of accounts owed to private enterprises. Adhere to the principle of clear boundaries, highlighting key points, source governance, and gradual progress, and use market-oriented and legal means to quickly clear up overdue debts between government departments and their affiliated institutions (including affiliated institutions), large state-owned enterprises (including government platform companies) and private enterprises due to business transactions, to ensure that private enterprises have a clear sense of gain. Government departments, large state-owned enterprises, especially central enterprises, should set an example of respecting contracts and keeping promises, conscientiously organize the settlement of debts, and promptly pay various unpaid accounts payable in accordance with the law and regulations. We need to strengthen policy support, improve long-term mechanisms, strictly prevent new arrears, and effectively safeguard the legitimate rights and interests of private enterprises.
（17） Enterprises should actively create conditions conducive to financing. Private enterprises should operate in compliance with the law and cherish their commercial reputation and credit records. Strictly distinguish between individual household income and expenditure and enterprise production and operation income and expenditure, standardize the accounting system, and actively disclose information. Strengthen their own financial constraints, scientifically arrange the financing structure, and standardize the management of related transactions. Do not evade financial debts and provide necessary basic conditions for financial support.
（18） Strengthen supervision and inspection of landing implementation. All regions, departments, and financial institutions should firmly establish the "Four Consciousness", firmly adhere to the "Four Confidence", firmly adhere to the "Two Maintenance" principle, adhere to the problem orientation, clarify responsibilities, determine time limits, and pay close attention to implementation. Promote third-party institutions to evaluate the implementation of policies for private enterprises in financial services, and improve the transparency of policy implementation. Timely summarize and provide replicable and easy to promote successful cases and effective practices to all regions. If the implementation is not effective, serious accountability should be held in accordance with the law and regulations to ensure that all policies are implemented in detail.
