Increase financial support for industries, enterprises and people affected by the epidemic, and a number of favorable policies have come!
On April 18, the people’s Bank of China and the State Administration of foreign exchange issued the notice on doing a good job in epidemic prevention and control and financial services for economic and social development, which put forward 23 policies and measures to strengthen financial services and support the real economy from three aspects: supporting the relief of distressed subjects, unblocking the national economic cycle and promoting the development of foreign trade and exports.
As early as 2020, at the beginning of the outbreak of COVID-19 pneumonia, the people’s Bank of China and relevant departments issued the notice on further strengthening financial support to prevent and control New Coronavirus’s epidemic of pneumonia, and put forward 30 measures, such as money and credit, financial services and so on.
Relevant people of the people’s Bank of China told reporters that the 23 measures launched this time are to continue to make good use of the policies with good early results, adjust the policies that do not adapt to the current new situation, and provide accurate support for the current epidemic prevention and control and the characteristics of economic and social development. These 23 measures mainly have three new features: first, highlight and strengthen the supply guarantee of important products such as grain and energy; Second, we should give prominence to increasing financial support for the smooth circulation of logistics and shipping; Third, the policy of relieving groups has been strengthened
Since the beginning of this year, the people’s Bank of China has stepped up its liquidity investment. In order to support the accelerated implementation of small and micro enterprises’ retention tax rebates, the people’s Bank of China has stepped up its efforts to speed up the payment of balance profits to the central government. As of mid April, 600 billion yuan has been paid, mainly for retention tax rebates and transfer payments to local governments, which is equivalent to 600 billion yuan of basic currency, which is basically equivalent to the overall standard reduction of 0.25 percentage points.
On April 15, the people’s Bank of China announced an overall reduction of reserve requirement by 0.25 percentage points and will invest another 530 billion yuan of long-term funds. Throughout the year, the people’s Bank of China will hand over more than 1100 billion yuan of balance profits, make progress in payment, allocate them in time according to the needs of tax rebate, cooperate with other monetary policy operations, and effectively maintain reasonable and sufficient liquidity.
Since this year, the people’s Bank of China has guided the market interest rate down by 0.1-0.15 percentage points, driving the enterprise loan interest rate down by 0.21 percentage points to 4.4% in the first quarter, a record low since statistics.
The people’s Bank of China will strengthen the support of structural monetary policy tools such as refinancing, make good use of small refinancing for agricultural expenditure and two carbon reduction tools, accelerate the refinancing of 100 billion yuan in the field of transportation and logistics, and create 200 billion yuan of scientific and technological innovation refinancing and 40 billion yuan of inclusive pension refinancing, which is expected to drive the loan investment of financial institutions by an additional 1 trillion yuan.
the key points of the 23 policy initiatives are as follows:
— for flexible employment entities such as taxi drivers, online shop owners and truck drivers, financial institutions can increase their support for business loans in comparison with individual industrial and commercial households and small and micro business owners.
— opening up a “green channel” for transportation and logistics enterprises with heavy tasks in epidemic prevention and control and emergency transportation; For transportation logistics enterprises and truck drivers who have temporary difficulties in repaying loans due to the impact of the epidemic, support financial institutions to make scientific and reasonable loan extension and renewal arrangements.
— according to urban policies, reasonably determine the minimum down payment ratio and minimum loan interest rate requirements of commercial individual housing loans, support the reasonable financing needs of real estate development enterprises and construction enterprises, and promote the steady and healthy development of the real estate market.
— guide platform enterprises to steadily reduce interest and charge levels, and provide extended repayment of principal and interest services to loan customers affected by the epidemic, so as to maximize the benefits of enterprises and the people.
— fully meet the reasonable financial needs of the private economy and further increase the proportion of private enterprise loans in newly issued enterprise loans.
— financial institutions should respond to the exchange rate hedging needs of foreign trade enterprises and other market entities in a timely manner, support enterprises to expand RMB cross-border settlement, optimize the management and services of foreign exchange derivatives business, and reduce the cost of hedgingP align = “center” for people in distress, extend the repayment time reasonably, such as personal housing loans
The notice made it clear that we should improve the quality and efficiency of financial services for key areas and people in distress.
In this regard, the notice specifically proposes the following measures: for flexible employment subjects such as taxi drivers, online shop owners and truck drivers, financial institutions can increase their support for business loans in comparison with individual industrial and commercial households and small and micro enterprise owners
For people hospitalized or isolated due to covid-19 pneumonia, observers who need to be isolated for epidemic prevention and control, and people who temporarily lose their source of income affected by the epidemic, financial institutions should timely optimize credit policies, distinguish between repayment ability and willingness, distinguish between short-term repayment ability and medium and long-term repayment ability affected by the epidemic, and flexibly take reasonable measures to postpone repayment time, extend loan term Adjust the repayment plan by delaying repayment of principal and other means to support it.
In fact, the “Article 30” issued in 2020 made it clear that financial institutions should flexibly adjust the repayment arrangements of personal credit such as housing mortgage and credit card for people who temporarily lose their source of income affected by the epidemic, and reasonably postpone the repayment period.
At present, for the trapped people affected by this round of epidemic, many banks are providing a package of support measures, including extending the repayment period and protecting the rights and interests of credit investigation, involving a number of retail businesses such as personal housing loans, personal consumer loans and credit cards.
The reporter recently learned from six major state-owned banks and other banking institutions that these institutions are actively responding to market concerns and further clarifying the rescue policies for the people in distress.
For example, China Construction Bank Corporation(601939) said that since the outbreak of covid-19 pneumonia in early 2020, the bank has issued relevant service policies such as deferred repayment during the epidemic period for housing mortgage loans, consumer loans and other businesses, which are applicable to the epidemic areas in all provinces of the country and continue to this day. From the beginning of this year to April 8, in Jilin, where the epidemic situation is more severe, the bank has handled deferred repayment services for more than 1150 customersP align = “center” open up a “green channel” for transportation logistics enterprises that undertake heavy tasks of epidemic prevention and control and emergency transportation
The notice also proposed to increase financial support for the smooth circulation of logistics and shipping.
Recently, policies and measures have been taken to support the smooth flow of freight logistics. Analysts believe that the freight logistics industry is an important part of the industrial chain supply chain and the “last kilometer” to ensure people’s livelihood; The freight logistics industry is very important for the protection of anti epidemic materials and living materials during the epidemic. At present, the local recurrence of the epidemic has a significant impact on the freight logistics industry. The introduction of supporting measures will improve the stability of the operation of the logistics industry, support the smooth freight logistics, and better support the overall stability of the anti epidemic.
The notice requires that financial institutions should actively follow up and effectively meet the financing needs of transportation enterprises open up a “green channel” for transportation logistics enterprises that undertake heavy tasks of epidemic prevention and control and emergency transportation, optimize the credit approval process and provide flexible and convenient financial services.
According to the notice, for transportation logistics enterprises and truck drivers who have temporary difficulties in repaying loans due to the impact of the epidemic, support financial institutions to make scientific and reasonable loan extension and renewal arrangements
Zeng, deputy director of Finance and logistics, said that the development of some enterprises in Shanghai may be affected by the financial crisis and the financial development of the laboratory. In particular, some small and medium-sized logistics enterprises may face tight cash flow and need to increase corresponding financial support. Therefore, we can refer to the relevant policies on Pratt & Whitney small and micro enterprise loans in the past and make arrangements for delaying the repayment of principal and interest to help these logistics enterprises tide over the difficulties.
The notice also said that we should make good use of civil aviation emergency loans and other tools, take multiple measures at the same time, and strengthen credit support for airlines and airportsP align = “center” reasonably determine the minimum down payment ratio and minimum loan interest rate requirements for commercial individual housing loans due to urban policies
With regard to the improvement of financial services in the housing field, the notice specifically puts forward the following contents: we should adhere to the positioning of “houses are used for living, not for speculation”, focus on the goal of “stabilizing land prices, house prices and expectations”, implement differentiated housing credit policies due to urban policies, and reasonably determine the minimum down payment ratio and minimum loan interest rate requirements of commercial individual housing loans within the jurisdiction, better meet the reasonable housing needs of buyers and promote the steady and healthy development of the local real estate market.
financial institutions should distinguish between project risks and enterprise group risks, increase support for high-quality projects, do not blindly withdraw loans, cut off loans, suppress loans, and do not engage in “one size fits all”, maintain the stable and orderly release of real estate development loans.
Commercial banks and financial asset management companies should do a good job in M & a financial services for risk disposal projects of key real estate enterprises, steadily and orderly carry out M & a loan business, strengthen M & a bond financing support, and actively provide M & a financial advisory services.
On the basis of controllable risks, financial institutions should appropriately increase liquidity loans and other support to meet the reasonable financing needs of construction enterprises, do not blindly withdraw, cut off and suppress loans, and maintain the continuous and stable financing of construction enterprisesP align = “center” guide online financial platform enterprises to steadily reduce interest and charge levels and provide customers affected by the epidemic with deferred debt service
Compared with the “30 articles” in 2020, the notice puts forward a new policy measure to guide platform enterprises to carry out inclusive financial business in accordance with the law.
With regard to this policy, the circular specifically proposes to give full play to the positive role of platform enterprise financial services on the basis of promoting the standardized and healthy development of platform enterprise online financial business.
Support platform enterprises to use Internet technology, optimize scenario based online financing products, and provide non-contact financial services to platform merchants and consumers.
Encourage platform enterprises to give full play to their advantages in customer acquisition, data, risk control and technology, and increase support for the first loan and credit loan in the fields of “agriculture, rural areas and farmers” and small and micro enterprises.
Guide platform enterprises to steadily reduce the level of interest and charges, provide extended debt service for loan customers affected by the epidemic, and maximize the benefits of enterprises and the peopleP align = “center” further increase the proportion of private enterprise loans in newly issued enterprise loans
In support of the healthy development of private enterprises, the circular requires that we adhere to the “two unwavering” and treat the state-owned economy and the private economy equally in terms of financial policies such as loan and bond financing policies.
The circular encourages financial institutions to establish medium – and long-term cooperative relations with private enterprises, sets annual service targets for private enterprises, fully meets the reasonable financial needs of the private economy, and further increases the proportion of private enterprise loans in newly issued enterprise loans.
The notice also proposes to give play to the leading role of the national financing guarantee fund, encourage qualified places to set up special funds for loan risk compensation or credit guarantee funds for private enterprises, and focus on providing credit enhancement services such as first loan, re loan and renewal. We will improve the bond financing support mechanism for private enterprises and encourage financial institutions to increase bond investment in private enterprisesP align = “center” safe: the trade revenue and expenditure facilitation policy is extended to the whole country, and six foreign exchange measures escort the market players
Under the epidemic, a package of policies and measures were quickly “launched” to strengthen the support of foreign exchange management for the development of the real economy.
On April 18, the people’s Bank of China and the State Administration of foreign exchange issued the notice on doing a good job in epidemic prevention and control and financial services for economic and social development, which put forward 23 policies and measures to strengthen financial services and support the real economy from three aspects: supporting the relief of troubled subjects, strengthening the support of the real economy and promoting the development of foreign trade and exports.
The reporter found that the policy “big gift package” introduced this time mainly involves six foreign exchange financial service measures. A series of measures to coordinate the overall situation of epidemic prevention and control and economic development are expected to bring a real “sense of gain” to market players, especially small and medium-sized enterprises.
Specifically, simplifying the settlement procedures of foreign trade enterprises, reducing the financing costs of foreign trade enterprises, improving the exchange rate management level of enterprises, deepening the reform and opening up in the field of foreign exchange and optimizing foreign exchange business services are the main connotation of a series of measuresP align = “center” expand the scope of policy benefits: expand the trade balance facilitation of new small and medium-sized entities to the whole country
In terms of improving the level of trade facilitation, the circular extended the policy of facilitating the trade and foreign exchange revenue and expenditure of high-quality enterprises to the whole country, so as to bring more enterprises, especially small and medium-sized foreign trade enterprises, into the scope of the facilitation policy and help “apply every second and do every minute” in foreign exchange settlement. At the same time, we will further broaden settlement channels, support more qualified Payment institutions and banks, and provide safe, efficient and low-cost cross-border capital settlement services for new trade entities such as cross-border e-commerce with electronic transaction information, so as to promote small and medium-sized foreign trade enterprises to expand exports.
“One of the highlights of this policy is to highlight the support for small and medium-sized enterprises and clearly include small and medium-sized foreign trade enterprises into the bonus category of the facilitation policy. On the other hand, for cross-border e-commerce and other new trade businesses dominated by small and medium-sized enterprises, adapt to the characteristics of small, massive and electronic transactions, further enrich settlement channels, reduce settlement costs and promote the development of foreign trade exports.” The person in charge of relevant departments of the safe told reporters.
With regard to facilitating enterprises to carry out cross-border financing, the circular proposes to support qualified high-tech and “specialized and special” small and medium-sized enterprises to carry out the pilot of foreign debt facilitation quota; Support multiple external debts of non-financial enterprises to share one external debt account; Support enterprises to handle foreign debt registration online. At the same time, it will further facilitate the settlement of foreign exchange loans and the repayment of foreign exchange purchases of China with trade and export background.
“These measures are mainly to reduce the financing costs of foreign trade enterprises, facilitate foreign trade enterprises to make full use of China’s international markets and resources, and support foreign trade enterprises to obtain low-cost financing from overseas.” The person in charge told reporters that “specialized and new” small and medium-sized enterprises were also included in the pilot scope for the first time.
In addition, in terms of optimizing foreign exchange business services, the notice said that it would further improve the digital level of cross-border business, support banks to improve the efficiency of business handling through electronic means, promote financial institutions to realize the networking and paperless business handling, and provide enterprises with more efficient and convenient cross-border capital settlement services.
p align = “center” RMB two-way fluctuation “theme” enterprise exchange rate risk management meets the “help” again
In recent years, with the increasing marketization of RMB exchange rate and the two-way fluctuation and elasticity of RMB exchange rate, the importance of exchange rate risk management of enterprises, especially foreign trade enterprises, has become more and more prominent.
The circular proposes to guide banks to optimize services, reduce transaction costs, expand local currency settlement, strengthen cooperation between banks, governments and enterprises and other measures, which is conducive to further improving services such as enterprise exchange rate risk management.
“As small and micro enterprises are scattered in small and medium-sized cities and county areas, one of the intentions of the relevant measures is to support banks to put the ‘end’ of their operation, that is, their branches, which can do more in-depth derivatives professional business and really help local small and micro enterprises manage their foreign exchange risk exposure.” The official said that the notice mentioned the need to strengthen the cooperation between banks, governments and enterprises, that is, to further reduce the cost of enterprises participating in derivatives transactions through the cooperation between banks, governments and enterprises.
Another distinctive manifestation of “cost reduction” is that the notice clearly exempts small, medium-sized and micro enterprises from transaction fees in the inter-bank foreign exchange market related to foreign exchange derivatives transactions. The dividend of this policy has increased significantly compared with last year. In 2021, in order to reduce the exchange rate hedging cost of small, medium-sized and micro enterprises, China foreign exchange trading center halved the transaction handling fee of inter-bank foreign exchange market related to derivatives transactions of small, medium-sized and micro enterprises.
For some time, the safe has also achieved positive results in supporting enterprises and other market entities to manage the risk of exchange rate fluctuations. The person in charge of relevant departments of the safe told reporters that in 2021, the scale of enterprises using forward, options and other foreign exchange derivatives to manage exchange rate risk increased by 59%, and the foreign exchange hedging ratio increased by 4.6 percentage points to 21.7%P align = “center” promote the overall opening of China’s bond market and further facilitate the “Introduction” of funds
Deepening reform and opening up in the field of foreign exchange is also one of the important connotations of the notice. The notice said that we should promote the unified access standards of inter-bank and exchange bond markets, simplify the market entry process, and improve the capital management of foreign investors investing in the domestic bond market. Optimize the fund management of domestic bonds (Panda Bonds) issued by overseas institutions, and domestic affiliated enterprises of panda bond issuers can borrow relevant panda bond funds according to the principle of actual needs.
“On the whole, these measures are conducive to promoting the overall opening of China’s bond market, unifying the fund management rules for foreign investment in the domestic bond market, and optimizing the management procedures of capital remittance in and out, which will further facilitate overseas institutional investors to invest in China’s bond market.” The person in charge of relevant departments of the safe said.
The reporter learned that the introduction of relevant policies will further promote the overall opening of China’s bond market, improve the convenience of foreign investors to invest in China’s bond market, and attract more foreign investors to enter China’s bond market.
In terms of facilitating foreign institutional investors, the official said that the subsequent relevant investment registration procedures are expected to be further simplified. “When conditions are ripe, foreign institutional investors (QFII / rqfii) will handle the registration business of domestic securities and futures investment funds, which will be delegated to banks, and the process will be more convenient to better meet the growing investment demand of foreign investors in China’s securities market.”
The circular also said that we should give full play to the supporting role of export credit insurance. Guide insurance institutions to improve the efficiency of insurance claims settlement for small, medium-sized and micro foreign trade enterprises. In recent years, the Bureau of foreign trade finance has built a “cross-border insurance policy verification” application platform to provide more accurate information for enterprises’ cross-border trade financing.
