China.org.cn | December 9, 2024
Shou Xiaoli:
In the interest of time, last question.
China Banking and Insurance News:
In light of difficulties with financing and high costs that are faced by small and micro enterprises, a coordination mechanism to support their financing has recently been established. Could you share some specific arrangements for this mechanism. Thank you!
Cong Lin:
Thank you for the question. Small and micro enterprises play a significant role in driving the economy, creating jobs and improving livelihoods. Drawing on thorough research and the experiences of relevant mechanisms, the NFRA has taken the initiative to establish a coordination mechanism to support financing for small and micro enterprises. This mechanism aims to leverage the advantages of the Party's leadership and the institutional framework of socialism with Chinese characteristics, strengthen coordination between central and local governments, tackles both the challenges small and micro enterprises face in securing financing and the difficulties banks encounter in lending to them. We will soon hold a dedicated meeting to outline the plans. Let me introduce the mechanism from three dimensions: who will take the lead, how it will be implement and what goals will be achieved.
First is the question of "who will take the lead." At the national level, the NFRA and the NDRC will spearhead efforts, working together with relevant government departments and banking institutions. The NFRA and the NDRC will focus on overall coordination and scheduling, aligning industrial, fiscal and taxation and financial policies to create a multiplier effect through policy synergy. At the local level, provinces, cities, districts and counties should establish corresponding working mechanisms, refine plans according to local conditions, and ensure effective implementation of various tasks. Especially at the district and county level, dedicated task forces should be set up to conduct enterprise visits, assess their needs, and recommend financing options. On the banking side, similar task forces will be set up to mobilize internal resources, encourage local-level institutions to lend proactively, and promptly address the financing needs of small and micro enterprises.
Second is the question of "how it will be implemented." Districts and counties, given their close ties to the grassroots level, have the deepest understanding of enterprises and serve as the driving forces and basic units for ensuring the mechanism is effectively implemented. Therefore, the task forces at the district and county level should act as bridges, connecting enterprises and banks. They should organize relevant departments, urban subdistricts, towns and townships as well as banking institutions to conduct visits. Specifically this involves assessing the operating conditions and financing needs of small and micro enterprises, explaining supportive policies, reducing discrepancies between policy intentions and enterprises' perceptions, and referring eligible small and micro enterprises to banks. The banks, in return, will make credit decisions based on market-oriented and legal principles as well as their own credit approval criteria, thereby providing financial support to the enterprises. In summary, the requirements are clear and simple: As long as small and micro enterprises operate in compliance and continuity, have a fixed place of business, are in sound operating condition, have genuine financing needs and intend to use loans for compliant purposes, they can access the funding needed for growth through this mechanism.
Finally, there is the question of "what goals will be achieved." We hope to achieve the following three goals: First, direct access to the grassroots level. Low-cost credit funds should directly reach the grassroots, eliminating any final barriers to benefiting enterprises and the public. Second, efficiency and convenience. Banks should, in principle, decide on credit approval within one month. For eligible enterprises, banks should establish green channels, optimize procedures and expedite processing. Third, reasonable interest rates. By reducing the cost of information gathering, cutting down on intermediary steps and lowering lending costs and additional fees, we aim to reduce the overall financing costs for small and micro enterprises.
That's all for my answer. Thank you!
Shou Xiaoli:
Thank you, Mr. Luo Wen. Thank you to the other speakers, and thank you to all the journalists for your participation. This concludes today's press conference. Goodbye!
Translated and edited by Wang Yiming, Wang Qian, Liu Sitong, Chen Xinyan, Wang Xingguang, Lin Liyao, Wang Yanfang, Yan Xiaoqing, Huang Shan, Wang Ziteng, Liu Qiang, Li Huiru, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.