Contributing commentator of this journal.
On November 27, the People's Bank of China and other eight departments jointly issued the Notice on Strengthening Financial Support Measures to Help the Development and Growth of the Private Economy (hereinafter referred to as the "Notice"), closely following the concerns of the development of the private economy and proposing 25 measures for financial support for the development of the private economy.
The private economy is a new force in promoting Chinese-style modernization and an important force in promoting the high-quality development of China's market economy. In July this year, the "Opinions of the Communist Party of China on Promoting the Development and Growth of the Private Economy" was announced, which reaffirmed the important position and role of the private economy and made top-level arrangements for supporting the private economy. Subsequently, relevant support policies and measures have been introduced, and the "Notice" is to improve the refinement and deepening of the financing support policy system for private enterprises, which is of great significance for optimizing the financial environment of private enterprises and boosting the confidence of private enterprises in development.
The development and growth of enterprises are inseparable from the strong support of finance. Previously, China's relevant departments have introduced a series of policy measures to continuously increase the financing support for the private economy, and promote the increase in the financing volume, expansion and price reduction of private enterprises, and have achieved certain positive results.
At present, China is in a critical period of economic recovery and industrial transformation and upgrading, and further improve the availability and convenience of financial services for private enterprises, so that private enterprises can have stronger confidence and more abundant motivation to achieve high-quality development. The "Notice" aims to solve the financing problems of private enterprises from multiple dimensions. Taking the most familiar credit financing method for private enterprises as an example, the "Notice" requires banking financial institutions to increase the weight of business performance appraisal related to private enterprises, gradually increase the proportion of loans to private enterprises, and reasonably improve the tolerance of non-performing loans of private enterprises. These specific and pragmatic requirements can urge banking financial institutions to increase investment in credit resources for private enterprises and enhance support for private enterprises.
Considering that enterprises in different industries, different types and at different stages of growth have different needs for financing channels, the "Notice" also puts forward measures to deepen the construction of the bond market system, give full play to the role of multi-level capital markets, increase foreign exchange facilitation policies and service supply, and strive to promote the smooth financing channels of private enterprises such as loans, debts and stocks, and build a comprehensive and multi-level financial support system for private enterprises to meet diversified financing needs.
Objectively speaking, the reason why some financial institutions did not dare to provide financial services for private enterprises in the past was that in addition to the lack of collateral and weak anti-risk ability of some private enterprises, it was also because their credit rating was relatively low and the information transparency was not high, which would greatly increase the difficulty of risk control of financial institutions. Therefore, to systematically solve the problem of financial support for private enterprises, it is also necessary to have corresponding incentive mechanisms, risk compensation mechanisms, and the introduction of corresponding supporting policies.
In terms of strengthening positive incentives, the "Notice" proposes to increase the support of monetary policy tools, strengthen financial incentives and insurance protection, and broaden the capital channels of banking financial institutions, which will undoubtedly enhance the enthusiasm of financial institutions to serve the private economy. In order to solve the problem of low information transparency of private enterprises, the "Notice" proposes to improve the credit information sharing mechanism of private enterprises, and promote the credit information of enterprises related to water and electricity, taxation and other enterprises, and open it to financial institutions for inquiry under the premise of compliance with laws and regulations. The establishment and improvement of these supporting policies will effectively alleviate the information asymmetry between financial institutions and private enterprises, and enhance the willingness of financial institutions to serve private enterprises.
Finance is like water, and it should be watered in the "field of private enterprises". Financial institutions should further implement various support measures, enhance the willingness, ability and sustainability of serving private enterprises, inject more financial water into private enterprises, create a better financial environment, and help the development and growth of the private economy.
Edited by Qu Yang.
Editor-in-charge: Hui Ningning.
Proofreading by Zhang Bo Zhang Xuehui.
* Legal Person Magazine, December 2023, Issue 238.