The Chinese central government has called for the domestic capital market to provide greater support to growth in the manufacturing services sector.
On 23 March the National Development and Reform Commission (NDRC) led the issuance of the “Opinions Concerning Accelerating the High-quality growth of the Manufacturing Services Sector” (关于加快推动制造服务业高质量发展的意见) in cooperation with a slew of other agencies including the Ministry of Education and the Ministry of Science and Technology.
The Opinions calls for the “expansion of financing channels and guidance of financial institutions to expand the vigour of financial support for manufacturing services sector enterprises,” including:
- Supporting bond financing by qualified manufacturing services sector enterprises,
- Effectively expanding the scope of intangible property collateral financing using intellectual property rights and the rights to future revenue from contractual energy management,
- Innovative development of supply chain financing,
- Gradually developing equipment leasing and financial leasing services for large-scale equipment, public facilities and manufacturing lines,
- Developing financial products which suit the unique features of the manufacturing services sector,
- Encouraging venture capital institutions to expand their investments in the manufacturing services sector.
With regard to the use of the capital market to support the development of the Chinese manufacturing services sector, the Opinions call for:
- Supporting qualified manufacturing services sector enterprises to obtain financing by listing on main boards, venture enterprise boards and offshore capital markets,
- Making better use of the role of capital markets and fully employing diversified financing tools,
- Continually pursuing innovation in services models and providing higher quality, higher efficiency financial services to the manufacturing sector.
