On September 7, the State Council Information Office held a regular briefing on the State Council’s policies to support the development of small, medium and micro enterprises. Pan Gongsheng, Deputy Governor of the People’s Bank of China and Director of the State Administration of Foreign Exchange, Tian Yulong, Member of the Party Leadership Group, Chief Engineer, and Press Spokesperson of the Ministry of Industry and Information Technology, Liang Zhifeng, Director of the Small and Medium-sized Enterprise Bureau of the Ministry of Industry and Information Technology, Department of Monetary Policy, People’s Bank of China Zhang Sun Guofeng, Director of the Financial Markets Department of the People’s Bank of China, Zou Lan, introduced the situation of supporting the development of small, medium and micro enterprises and answered questions from reporters.
Pan Gongsheng stated that the People’s Bank of China will continue to firmly adhere to the “two unshakable”, and work with relevant departments to further strengthen policy incentives and restraints on the basis of implementing various financial benefit-enterprise policies, and promote innovation in financial products and service methods. Improve the internal resource allocation and policy arrangements of financial institutions, optimize the financing environment, etc., continue to improve financial services for small and micro enterprises, and support the development of small and micro enterprises.
Tian Yulong said that in the next step, the Ministry of Industry and Information Technology will work with relevant departments to focus on the three areas of “policy, service and environment”, focus on the two key points of “financing promotion and rights protection”, and focus on “improving innovation capabilities and professionalism” to establish a sound system. The “321” work system for SMEs implements the decision-making and deployment of the Party Central Committee and the State Council to support the development of SMEs, helps SMEs alleviate their difficulties, builds a solid foundation for development, and enhances the sense of enterprise acquisition.
Small and micro enterprise financing volume increases, expands, and prices drop
Pan Gongsheng said that since the beginning of this year, the People’s Bank of China has conscientiously implemented the various decisions and deployments of the Party Central Committee and the State Council. Under the direct command of the Financial Committee of the State Council, the prudent monetary policy is flexible, precise, reasonable and appropriate, maintaining reasonable and adequate liquidity, and continuing to implement two Direct access to the real economy’s monetary policy tools, in-depth development of commercial banks’ financial service capacity improvement projects for small, medium and micro enterprises, small and micro enterprise financing continues to show a trend of “increasing volume, expanding coverage, and falling prices”, and the convenience of corporate financing has been greatly improved.
As of the end of July 2021, the balance of inclusive small and micro loans was 17.8 trillion yuan, an increase of 29.3% year-on-year; 38.93 million small and micro business entities were supported, an increase of 29.5% year-on-year; the newly issued inclusive small and micro enterprise loan interest rate was 4.93% in July. This is a decrease of 0.15 percentage points from the end of last year.
In July, the central bank lowered the RRR and released 1 trillion yuan in long-term funds. In this regard, Sun Guofeng said that this has effectively increased the long-term funding sources of financial institutions to support the real economy, and guided financial institutions to actively use the RRR cut funds to increase support for small and micro enterprises. At the same time, the RRR cut has reduced the capital cost of financial institutions by about 13 billion yuan, and the financing costs of small and micro enterprises have been steadily reduced through the transmission of financial institutions. The People’s Bank of China will guide financial institutions to continue to make good use of the funds released by the RRR cut to support small and micro enterprises.
On September 1, the State Council executive meeting proposed to further increase support for small, medium and micro enterprises. Pan Gongsheng introduced the specific financial arrangements: First, an additional 300 billion yuan of small re-loan lines will be issued within the remaining four months of this year. Commercial banks receive this re-loan mainly to small and micro enterprises. The second is to increase the implementation of inclusive small and micro credit loan support policies. The third is cooperation between financial institutions and the government to give full play to the role of local government financing guarantee agencies. The fourth is to innovate the supply chain financial service model to solve the difficulty in capital turnover caused by the occupation of accounts receivable by small, medium and micro enterprises. The fifth is to strengthen the financial service capacity building of small, medium and micro enterprises.
Reduce cost pressures for small, medium and micro enterprises
Since the second quarter of this year, raw materials and logistics costs have continued to rise sharply, pushing up operating costs, insufficient order demand and other issues, which have also affected the normal production and operation of enterprises. In addition, the recent floods have caused some business difficulties. Some small and micro enterprises are also facing some new challenges.
In response to these situations, Tian Yulong said that the Ministry of Industry and Information Technology will coordinate with various departments to solve and help small and medium-sized enterprises solve problems and difficulties, and mainly do the following four aspects.
One is to further implement the policies that have been issued. We must make good use of these policies, implement the policies to help enterprises and benefit enterprises, especially improve the cross-departmental policy information release platform, and strengthen policy interpretation and push.
The second is to further study and increase support. In conjunction with various departments, in accordance with changes in the domestic and foreign situation and the needs of the real economy, we will study and timely introduce succession policies, stabilize policy expectations, enhance corporate confidence, and implement precise policies based on the different characteristics of small and medium-sized enterprises.
The third is to mobilize the enthusiasm of local governments. It is necessary to encourage and support local governments to adopt distinctive and individualized policies to support them, effectively solve the practical difficulties of localized small and medium-sized enterprises, deal with the impact of epidemics and floods, alleviate difficulties, strengthen the guarantee of production factors according to local conditions, and further reduce the operating costs of enterprises. .
The fourth is to strengthen the research and judgment on the monitoring and operation of SMEs. Use big data and other means to track and monitor the operation and business conditions of small and medium-sized enterprises in a timely manner. Through close tracking, we can find some signs and tendencies, make policy reserves more accurate and sufficient, and promptly take action to help enterprises solve difficulties.
More than 4000 specialized and new “little giant” enterprises
Recently, the development of my country’s specialized and new “little giant” enterprises has received great attention from all walks of life, which has greatly encouraged the confidence and determination of small and medium-sized enterprises to take the path of specialized and new development.
According to Liang Zhifeng, at present, my country has cultivated three batches of 4,762 specialized and special new “little giant” enterprises, which has led to the cultivation of more than 40,000 provincial-level specialized and special new small and medium-sized enterprises, and more than 110,000 enterprises have been cultivated in the warehouse. . In the next step, we will further increase the intensity of cultivation and support, including building a high-quality enterprise gradient cultivation system, further improving enterprise innovation capabilities in response to shortcomings, and strengthening precise service support.
In terms of promoting enterprise innovation, through three batches of special funds for the development of small and medium-sized enterprises, more than 1,000 national-level specialized and new “little giant” enterprises have been supported in three batches to strengthen core technology research, accelerate the industrialization of technological achievements, and enhance technological innovation capabilities. In terms of enhancing the synergy of the industrial chain, support leading enterprises and SMEs to deepen cooperation, establish an industrial ecosystem of collaborative innovation, encourage leading “chain master” enterprises in the industrial chain to play a leading and supporting role, and open up markets, innovation, capital, and data To promote more specialized and new small and medium-sized enterprises to better integrate into the industrial chain, value chain and innovation chain.
Provide strong financial support to promote common prosperity
In the past few years, financial targeted poverty alleviation loans totaled 9.2 trillion yuan, making important contributions to winning the battle against poverty.
Zou Lan said that in the next step, the People’s Bank of China will earnestly implement the central government’s major decision on promoting common prosperity in high-quality development, adhere to the general tone of seeking progress while maintaining stability, maintain the stability of macroeconomic policies, and provide powerful financial resources for the promotion of common prosperity. Support and resolutely hold the bottom line of avoiding systemic financial risks.
For example, persist in not engaging in “flood flooding”, implement monetary policies, and maintain the stability of the RMB currency; improve the balance of financial support for regional development, implement re-lending policies for provinces with slow credit growth, and increase financial services in key areas and weak links. Support; vigorously develop inclusive finance, continue to deepen the construction of the rural credit system, improve the rural payment service environment, strengthen the publicity and education of financial knowledge and the protection of financial consumer rights, so that the people can enjoy modern financial services on an equal and safe basis; promote the stability and health of the real estate market For development, adhere to the positioning of “housing to live without speculation”, implement the prudential management system of real estate finance, increase financial support for the housing leasing market, promote the standardized and healthy development of various types of capital, and resolutely prevent the disorderly expansion of capital.
Implement prudent monetary policy and do a good job of cross-cycle design
In the context of possible changes in the monetary policy of the global economy, how does China’s monetary policy go?
Pan Gongsheng said that China has always insisted on implementing a prudent monetary policy. China’s monetary policy is still in the range of normalized monetary policy and does not engage in “flooding.” The monetary policy space is relatively large. This is the main gap between China’s monetary policy and the monetary policy of the Federal Reserve and other major economies since the beginning of 2000.
Sun Guofeng said that since the beginning of this year, my country’s monetary policy has been well designed for cross-cycle and made arrangements in advance, and forward-looking has reduced the possible negative spillover impacts of monetary policy adjustments in the global economy.
In the next step, Pan Gongsheng stated that the People’s Bank of China will implement a prudent monetary policy, maintain reasonable and sufficient liquidity, and maintain the growth rate of money supply and social financing scale to basically match the nominal economic growth rate. At the same time, do a good job in the design of cross-cycle policies, and make overall consideration of the convergence of monetary policy this year and next year. At the same time, in terms of monetary policy considerations, “self-centeredness” should be taken to enhance the autonomy of monetary policy. In terms of structural monetary policy, we will increase policy support for key areas and weak links, such as the targeted support of tools such as re-lending and rediscounting. The two monetary policy tools that directly reach the real economy will be further used, and the executive meeting of the State Council will make good use of it. 300 billion yuan of new small re-loan lines. At the same time, the People’s Bank of China will set up carbon emission reduction support tools to guide finance to accurately increase support for key areas and weak links such as small, medium and micro enterprises, green development, and technological innovation.
Regarding the liquidity environment, Sun Guofeng said that in the next few months, liquidity supply and demand will maintain a basic balance, and there will be no large gaps and large fluctuations. The People’s Bank of China has sufficient tools to smooth out the periodic disturbances in liquidity caused by fiscal revenue and expenditure, government bond issuance payments and other factors, and it is entirely possible to maintain reasonable and sufficient liquidity.
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