The Shanghai branch of the Chinese central bank has launched new measures to support financing for local private enterprises and tech companies.
On 22 November the People’s Bank of China’s (PBOC) Shanghai branch issued the “Implementation Opinions for Further Strengthening Financial Services for Private Enterprises and Innovative Tech Enterprises” (关于进一步加强民营企业和科技创新企业金融服务的实施意见), with the goal of “supporting the healthy development of Shanghai’s private economy as well its establishment as a tech innovation centre.”
The Opinions contain 20 opinions covering four key areas, including
- Fully employing the role of targeted re-lending adjustments and targeted “drip irrigation,” to focus no less than 10 billion yuan in re-loan quotas on private enterprises and small and micro-enterprises in key areas including tech innovation and advanced manufacturing.
- Expanding the vigour of bill financing support for private enterprises, and requiring that there be no restrictions on the total amounts for private enterprise bill rediscounting. Focused prioritisation of bill re-discounting for private enterprises of a significant scale or those that are renowned within their industry, and the opening of green channels for the rediscounting of bills from innovative tech enterprises. Preferential handling of rediscounting of the small bills (with a face value of 5 million yuan or less) of small and micro tech-enterprises.
- Implementation of “private enterprise bond financing support tool” policies, and the provision of focused support for the bond financing of private enterprises that have met with temporary difficulties, but which retain markets, prospects and competitive technologies. Financial institutions are required to participate in related work, and push for the effective implementation of bond financing support tools in Shanghai.
- Effective use of the guidance role provided by pledged supplementary loan (PSL) funds. Development and policy financial institutions within Shanghai are required to actively use PSL funds to expand lending to key private enterprises and small and micro-enterprises in the tech and foreign trade sectors, effectively reducing enterprise financing costs.