Breaking News! 25 Measures to Support the Private Economy Released

　　To thoroughly implement the spirit of the 20th National Congress of the Communist Party and the requirements of the Central Financial Work Conference, fully implement the "Opinions of the CPC Central Committee and the State Council on Promoting the Development and Growth of the Private Economy," adhere to the "two unwavering principles," guide financial institutions to establish the concept of "equal treatment," and continuously strengthen financial services for private enterprises, recently, eight departments including the People's Bank of China, the Financial Regulatory Administration, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance, and the All-China Federation of Industry and Commerce jointly issued the "Notice on Strengthening Financial Support Measures to Help the Development and Growth of the Private Economy," proposing 25 specific measures to support the private economy.

　　1. Continuously increase credit resource input to help the development and growth of the private economy.

　　(1) Clarify the goals and key points of financial services for private enterprises. Banking financial institutions should set annual service targets for private enterprises, increase the weight of services related to private enterprises in performance evaluations, strengthen financial support for private enterprises, and gradually increase the proportion of loans to private enterprises. Improve organizational structures and product services that adapt to the financing needs of private enterprises, increase support for private enterprises in key areas such as technological innovation, "specialized, refined, distinctive, and innovative" enterprises, green and low-carbon development, and industrial base reconstruction projects, support technological transformation investments and project construction of private enterprises, actively meet the reasonable financial needs of private small and micro enterprises, and optimize credit structure. Reasonably increase tolerance for non-performing loans of private enterprises, establish and improve the due diligence exemption mechanism for loans to private enterprises, and fully protect the enthusiasm of grassroots business personnel.

　　(2) Increase support for first loans and credit loans. Banking financial institutions should actively carry out first-loan customer cultivation and expansion actions, strengthen cooperation and coordination with development and reform departments, industry management departments, the Federation of Industry and Commerce, and chambers of commerce and associations, identify high-quality private enterprises with market potential, profitability, good credit, and financing needs, formulate targeted comprehensive cultivation plans, and improve the financial accessibility of private enterprises. Strengthen technological empowerment, develop credit financing products suitable for private enterprises, promote the "Credit Easy Loan" model, leverage the role of the national industry-finance cooperation platform, and continuously expand the scale of credit loans.

　　(3) Actively carry out industrial chain and supply chain financial services. Banking financial institutions should actively explore supply chain decore mode, support private small and micro enterprises in the supply chain to carry out order loans, warehouse receipt pledge loans, and other businesses. Further improve the functions of the China Credit Receivables Financing Service Platform and strengthen the application of the service platform. Promote the standardized development of supply chain bills. Deeply implement the "One Chain, One Policy, One Batch" financing promotion action for small and micro enterprises, support financing for private small and micro enterprises within key industrial chains, advanced manufacturing clusters, and small and medium-sized enterprise characteristic industrial clusters.

　　(4) Proactively provide funding continuation services. Encourage lead banks and syndicate loan lead banks to actively play a coordinating role, and for private enterprises temporarily facing difficulties but with marketable products, projects with development prospects, and technology with market competitiveness, connect in advance with follow-up financing needs based on market principles, without blindly suspending, reducing, withdrawing, or cutting off loans. Implement policies such as the "Notice on Doing a Good Job in Current Financial Support for the Stable and Healthy Development of the Real Estate Market" (Yinfa [2022] No. 254), maintain stability in key financing channels such as credit and bonds, and reasonably meet the financial needs of private real estate enterprises.

　　(5) Effectively promote development and prevent risks. Banking financial institutions should enhance the sustainability of services to private enterprises and operate in compliance with laws and prudence. Improve credit risk control mechanisms, strengthen management of low-cost funds enjoying preferential policies, and strictly monitor fund flows. Strengthen related-party transaction management, improve the ability to penetrate, monitor, and warn about related-party transactions.

　　2. Deepen the construction of the bond market system and smooth the bond financing channels for private enterprises.

　　(6) Expand the scale of bond financing for private enterprises. Support private enterprises in registering and issuing science and technology innovation notes, science and technology innovation bonds, equity-debt hybrid products, green bonds, carbon-neutral bonds, transition bonds, etc., further meeting the funding needs of private enterprises in fields such as technological innovation and green low-carbon development. Support private enterprises in issuing asset-backed securities and promote the revitalization of existing assets. Optimize the registration mechanism for private enterprise debt financing instruments, adopt a "fast track" for the entire registration process, support shelf registration and issuance, and improve the convenience of financing services.

　　(7) Fully utilize the role of bond financing support tools for private enterprises. Encourage ChinaBond Credit Enhancement Investment Co., Ltd., China Securities Finance Corporation Limited, and market institutions to expand and stabilize private enterprise bond financing support tools through guarantees, credit risk mitigation tools, direct investment, and other market-oriented and legal principles.

　　(8) Increase investment in private enterprise bonds. Encourage and guide commercial banks, insurance companies, various pension funds, public funds, and other institutional investors to actively and scientifically allocate private enterprise bonds. Support private enterprises in repurchasing their own issued debt financing instruments in a market-oriented manner under the premise of compliance with information disclosure, fair pricing, and fair trading norms.

　　(9) Explore the development of the high-yield bond market. Research and promote the construction of the high-yield bond market, meet the financing needs of technology-based small and medium-sized enterprises, build a dedicated platform for high-yield bonds, design trading mechanisms and systems that fit high-yield characteristics, strengthen the cultivation of professional investors, and improve market liquidity.

　　3. Better leverage the role of multi-level capital markets and expand the scale of equity financing for high-quality private enterprises.

　　(10) Support private enterprises in listing financing and mergers and acquisitions. Promote the deep and practical reform of the registration system, vigorously support private enterprises in issuing, listing, and refinancing. Support qualified private enterprises to list overseas, making good use of the two markets and two resources. Continue to deepen the market-oriented reform of mergers and acquisitions, study and optimize the "small and fast" review mechanism for mergers and acquisitions, and support private enterprises in improving quality and efficiency, growing bigger and stronger through mergers and acquisitions.

　　(11) Strengthen the support services of regional equity markets for private enterprises. Promote regional equity markets to highlight the positioning of private equity markets, steadily expand pilot innovative businesses such as private fund share transfers and comprehensive services for stock options, and enhance the enthusiasm of private funds, securities service institutions, and others to participate in regional equity markets. Support insurance, trust, and other institutions as well as asset management products to invest in key construction projects of private enterprises and unlisted enterprise equity under the premise of legal compliance, risk control, and commercial voluntariness.

　　(12) Leverage the role of equity investment funds in supporting private enterprise financing. Leverage the guiding role of government funds, support more social capital to invest in key industries and key areas of private enterprises. Actively cultivate early-stage investment forces such as angel investment and venture capital, increase investment in start-up private small and micro enterprises. Improve the investment exit mechanism, optimize the arrangement linking the listing lock-up period of enterprises invested by venture capital funds inversely with the investment period. Effectively implement the due diligence exemption mechanism for state-owned venture capital institutions.

　　4. Increase foreign exchange facilitation policies and service supply to support private enterprises in "going global" and "bringing in".

　　(13) Improve the facilitation level of current account receipts and payments. Encourage banking financial institutions to carry out cross-border RMB "first account" expansion actions. Support banking financial institutions in providing more high-quality private enterprises with trade foreign exchange income and expenditure facilitation services, improving the efficiency of cross-border fund settlement. Support banking financial institutions in coordinating the use of domestic and foreign currency settlement policies to provide high-quality trade facilitation services for new trade formats such as cross-border e-commerce.

　　(14) Improve policies facilitating cross-border investment and financing. Optimize the management of foreign exchange accounts and capital account fund usage, improve the facilitation policies for settlement of capital account income and payments, and support qualified banking financial institutions in carrying out digital services for capital accounts. Expand the pilot scope for facilitating cross-border financing of high-tech and "specialized, refined, distinctive, and innovative" small and medium-sized enterprises. Support qualified private enterprises in piloting integrated domestic and foreign currency cash pool businesses for multinational companies, facilitating the coordinated transfer and use of domestic and overseas funds by private enterprises. Orderly expand the pilot scope for foreign-invested enterprises' domestic reinvestment exemption from registration, improve the facilitation level of equity investment by foreign-invested enterprises domestically, and enhance the efficiency of private enterprises in utilizing foreign capital. Support cross-border equity investment funds to invest in high-quality private enterprises.

　　(15) Optimize cross-border financial foreign exchange specialized services. Encourage banking financial institutions to improve exchange rate risk management service systems and working mechanisms, strengthen multi-party cooperation among government, banks, and enterprises for guarantees, and reduce the foreign exchange hedging costs for private small and micro enterprises. Continuously innovate application scenarios of cross-border financial service platforms, expand coverage, and provide private enterprises with online and convenient financing and settlement services.

　　5. Strengthen positive incentives to enhance the enthusiasm of financial institutions in serving the private economy.

　　(16) Increase support through monetary policy tools. Continue to implement various monetary policy tools to support banking financial institutions in increasing credit supply to private enterprises in key areas. Make good use of agricultural and small business re-lending quotas, transmit preferential re-lending rates to private small and micro enterprises, and reduce financing costs for private small and micro enterprises.

　　(17) Strengthen fiscal rewards and insurance guarantees. Optimize the policy for entrepreneurial guarantee loans, simplify procedures, and promote online business models. Utilize the insurance compensation mechanism for the first set of major technical equipment and the first batch application of key new materials. Under the premise of controllable risks, steadily expand the coverage of export credit insurance.

　　(18) Broaden funding sources for banking financial institutions. Support banking financial institutions in issuing financial bonds to raise funds for loans to private enterprises. For banking financial institutions that strongly support private enterprises, prioritize support for issuing various capital instruments to supplement capital, provided they meet bond issuance conditions.

　　6. Optimize supporting financing policies to enhance the financial capacity of the private economy.

　　(19) Improve credit incentive and constraint mechanisms. Improve the credit information sharing mechanism for private enterprises, and establish sound credit rating and evaluation systems for small, micro enterprises and individual industrial and commercial households. Promote the opening of enterprise-related credit information such as water and electricity, industry and commerce, taxation, and government subsidies to banking financial institutions for inquiry under lawful and compliant conditions to alleviate information asymmetry. Establish a credit repair mechanism after correction of dishonest behavior.

　 　(20) Improve risk sharing and compensation mechanisms. Leverage the leading role of the national financing guarantee fund system, stabilize the scale of re-guarantee business, guide government financing guarantee institutions at all levels to reasonably determine guarantee fees, actively cultivate "first guarantee accounts" for private enterprises, and increase financing credit enhancement support for private small and micro enterprises. Establish a risk compensation mechanism for the national financing guarantee fund, encourage qualified localities to improve capital supplementation and risk compensation mechanisms for government financing guarantee institutions, and further enhance the credit enhancement and risk-sharing role of government financing guarantee institutions.

　　(21) Improve the credit constraint mechanism in the bill market. Support private enterprises to use bills more conveniently for financing, strengthen protection for private enterprises using bills, restrict bill business for dishonest enterprises with continuous overdue bills, and better prevent arrears to private enterprises. Guide the optimization of system functions of bill market infrastructure, facilitate enterprises to query bill information disclosure results, and more effectively identify and assess related credit risks.

　　(22) Strengthen confirmation of accounts receivable. Encourage payment parties such as government agencies, public institutions, and large enterprises to promptly confirm creditor-debtor relationships after small and medium-sized enterprises request confirmation of accounts receivable. Encourage local governments to actively take various measures to strengthen confirmation of accounts receivable for small and micro enterprises within their jurisdictions and improve the financing efficiency of accounts receivable. Promote core enterprises, government departments, and financial institutions to strengthen connection with the Zhongzheng accounts receivable financing service platform, promptly confirm accounts through the service platform, and alleviate difficulties in confirmation by core enterprises and government departments as well as risk control challenges for financial institutions.

　　(23) Increase support through tax policies. Implement tax policies for assets in lieu of debt. When banking financial institutions dispose of assets in lieu of debt and cannot obtain input invoices, allow the application of differential VAT collection policies according to current regulations, and reduce or exempt deed tax, stamp duty, and other taxes at the reception and disposal stages according to current regulations. Promote the implementation of the bad debt write-off management system for financial enterprises, further supporting banking financial institutions in accelerating the disposal of non-performing assets.

　　7. Strengthen organizational implementation guarantees.

　　(24) Strengthen publicity and interpretation. Financial institutions should actively carry out publicity and interpretation, enrich publicity forms, increase publicity frequency, expand publicity scope, and proactively push financial support policies, financial products, and service information to private enterprises. Development and reform and industry management departments, and the Federation of Industry and Commerce should guide private enterprises to operate legally, compliantly, and with integrity through training and other means, cherish business reputation and credit records, and prevent and resolve risks.

　　(25) Strengthen work implementation. Financial management, development and reform, industry and information technology, finance and taxation, and Federation of Industry and Commerce departments at all levels should strengthen communication and coordination, promote the resolution of bottlenecks and difficulties in policy implementation, strengthen policy supervision, summarize typical experiences, enhance publicity and promotion, and improve policy effectiveness. Further improve statistical monitoring and strengthen policy effect evaluation. The Federation of Industry and Commerce should play a good role as a bridge, link, and assistant, establish a directory of high-quality private enterprises, promptly and accurately push information to financial institutions, and strengthen communication between banks and enterprises. All financial institutions should fulfill their main responsibilities, promptly formulate specific implementation rules, and accelerate detailed policy implementation.