The circular pointed out that 23 policy measures were put forward to strengthen financial services and increase support for the real economy from three aspects: supporting the trapped subjects to get rid of difficulties, smoothing the national economic cycle and promoting the development of foreign trade exports.
Among them, the "Notice" emphasizes that it is necessary to do a good job in financial support for the real economy policy. Support local governments to appropriately invest in infrastructure in advance, and ensure the legitimate and compliant financing needs of financing platform companies. Due to the city's policy, reasonably determine the minimum down payment ratio and minimum loan interest rate requirements for commercial personal housing loans, support the reasonable financing needs of real estate development enterprises and construction enterprises, and promote the stable and healthy development of the real estate market. Guide platform enterprises to carry out business in inclusive finance according to laws and regulations, so as to maximize the benefits for enterprises and the people. Financial institutions are required to implement the "Two Unswervings" and increase the proportion of private enterprise loans in newly issued enterprise loans.
In this regard, Chen Wenjing, the Central Reference Hospital, said, first of all, because the city policy is the main line of the current policy, it is expected that many places will continue to reduce the down payment ratio and mortgage interest rate.
Since 2022, the real estate market has continued its low-temperature trend, and both ends of supply and demand are weak. The confidence of buyers in home ownership has not been substantially restored, the scale of market transactions has dropped significantly, and the willingness of housing enterprises to invest is insufficient. In order to promote the stable and healthy development of the real estate market, since the beginning of this year, the central government has repeatedly emphasized "meeting the reasonable housing needs of buyers", and all localities have actively implemented the "policy based on the city" to stabilize the market and stabilize expectations.
According to the monitoring of the Central Finger, up to now, more than 70 cities across the country have issued more than 100 real estate policies this year, mainly involving relaxing the purchase restriction policy, reducing the down payment ratio, granting housing subsidies, canceling the sales restriction, and providing financial support for housing enterprises. Among them, Zhengzhou, Lanzhou, Chongqing, Wenzhou, Nanning, Heze, Foshan, Ganzhou and other cities have optimized and adjusted the loan restriction policy, and some cities have lowered the down payment ratio of the first or second suite of personal commercial loans; In addition, several cities lowered mortgage interest rates. On April 14, Director Zou Lan of the Central Bank pointed out in response to a reporter's question, "Since March, due to the weakening market demand, banks in more than 0/00 cities across the country have lowered their mortgage interest rates independently according to market changes and their own business conditions, with an average range of 20 to 60 basis points."
The notice clearly stated that "the differentiated housing credit policy should be implemented due to the city's policy, and the minimum down payment ratio and minimum loan interest rate requirements for commercial personal housing loans within the jurisdiction should be reasonably determined to better meet the reasonable housing needs of buyers". It is expected that more cities will reduce the down payment ratio of commercial loans and mortgage interest rates, and optimize the "loan recognition" standard. The interest rate of the first home loan in most cities is expected to drop to 4.6%, and the interest rate of the second home loan will drop to 5.2%, which will be achieved by cutting interest rates.
In addition, recent outbreaks have been repeated in many places, and the income of some residents has been affected in the short term. The notice stated that "the repayment plan should be flexibly adjusted by reasonably delaying the repayment time, extending the loan term and delaying the repayment of the principal." This is a substantial relief for residents and is conducive to stabilizing current market expectations.
Secondly, financial institutions distinguish between project risk and enterprise group risk, and do not engage in "one size fits all", which is conducive to reasonable financial support for high-quality projects.
The monitoring of the middle finger shows that as of March 3, 2022, the outstanding bond balance of real estate enterprises was 2,645.22 billion yuan; The total amount of bonds due within one year is 688.87 billion yuan, of which the balance of credit bonds is 330.57 billion yuan and the balance of overseas bonds is 358.30 billion yuan. Housing enterprises are still at the peak of debt repayment. According to the latest data, from June 5438 to March 2022, real estate development enterprises received 3.8 trillion yuan of funds, down 19.6% year-on-year, the largest decline in history, in which domestic loans fell by more than 20%, and the financial pressure on enterprises continued.
The notice clearly stated that "financial institutions should distinguish between project risks and enterprise group risks, increase support for high-quality projects, and must not blindly lend, cut off loans or pressure loans to keep real estate development loans stable and orderly". Since last year, after the risks of some real estate enterprises have become explicit, financial institutions have experienced pressure reactions, and the "risk aversion" sentiment has risen. Once the enterprise defaults, all project financing will be affected, which will hurt the reasonable financing demand of some high-quality projects of real estate enterprises and further aggravate the liquidity risk of enterprises. This time, it is specially proposed that "financial institutions should distinguish project risks from enterprise group risks", which is beneficial for insurance companies to provide reasonable financial support for some high-quality projects.
Generally speaking, high-quality real estate projects are mostly distributed in hot cities such as first-and second-tier cities and strong third-tier cities. The debt structure is clear and reasonable, and it has good repayment ability. In the future, the financial support for such projects will increase, which will improve the capital of enterprises.
Third, M&A bond financing is accelerated, and the liquidation of insurance companies is accelerated.
According to the monitoring of the middle finger, since the beginning of this year, a number of housing enterprises have issued M&A bonds, with direct financing exceeding 654.38+000 billion yuan. Issuers are mainly state-owned enterprises. At the same time, some real estate enterprises have signed strategic cooperation agreements or memorandums with banks to obtain M&A financing loans. In addition, some banks and asset management companies raise funds by issuing M&A bonds.
This notice clearly stated that "commercial banks and financial asset management companies should provide financial services for M&A, a risk disposal project of key real estate enterprises, carry out M&A loan business in a safe and orderly manner, increase financing support for M&A bonds, and actively provide financial advisory services for mergers and acquisitions". Increasing financing support for M&A bonds in the future will help speed up the risk clearing of debt default housing enterprises.
However, it should be noted that in the stage of industry adjustment, housing enterprises as a whole are cautious about mergers and acquisitions. At present, M&A bond funds of housing enterprises are mostly used for cooperative projects. At present, housing enterprises have higher requirements for "their own safety" and are more cautious about the selection and delivery timing of the subject matter.
Recently, favorable policies have been frequent. From 15 "RRR reduction" to 18, the central bank implemented differentiated housing credit policies, and the credit environment and regulatory policies in the property market are expected to accelerate improvement, especially the down payment, interest rate reduction, and optimization of second-home certification standards will effectively stimulate the release of housing demand. From the perspective of industry development, the demand for housing has not disappeared, but the short-term demand side has a heavy wait-and-see mood. It is expected that with the gradual implementation of the policy, buyers' expectations and confidence in home ownership are expected to gradually stabilize, and the pace of market recovery still depends on the effective prevention and control of the epidemic and the implementation of local policies.
The following is the original notice:
In order to thoroughly implement the requirements of the CPC Central Committee and the State Council on coordinating the decision-making and deployment of epidemic prevention and control and economic and social development, and ensuring the smooth flow of logistics and promoting the stability of supply chain in industrial chain, 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 Financial Services for Epidemic Prevention and Control and Economic and Social Development (hereinafter referred to as the Notice), proposing to strengthen financial services and promote the development of foreign trade exports from three aspects: supporting trapped subjects to get rid of difficulties and smoothing the national economic cycle.
The circular pointed out that it is necessary to give full play to the dual functions of monetary policy in aggregate and structure, and increase financial support for industries, enterprises and people affected by the epidemic. The People's Bank of China will maintain reasonable and sufficient liquidity, guide financial institutions to expand loans, and provide reasonable profits to the real economy. Increase the amount of micro-credit loans for supporting agriculture in a timely manner, make good use of supporting tools for inclusive micro-loans, give incentive funds according to 1% of the increase in the balance of inclusive micro-credit loans of local corporate financial institutions, and continue to use the 400 billion yuan re-loan amount originally used to support inclusive micro-credit loans to promote the inclination of financial resources to enterprises, industries and regions affected by the epidemic. Ensure that tax refund funds are timely, accurate and directly in place, and promote market players to enjoy policy dividends as soon as possible. For the trapped people, financial institutions should flexibly support them by reasonably delaying repayment time, extending loan term and delaying repayment of principal. , and relevant overdue loans can be submitted without overdue records.
The "Notice" emphasizes that it is necessary to do a good job in financial support for the real economic policy. We will make good use of rediscount tools to support agriculture and carbon emission reduction, optimize and support special refinancing for clean and efficient use of coal, and fully guarantee the stable supply of food and energy. Establish a special refinancing for inclusive old-age care and support the financing of inclusive old-age care institutions. Make good use of the policy of entrepreneurial guarantee loan to enrich the financial products and services of new citizens. Support local governments to appropriately invest in infrastructure in advance, and ensure the legitimate and compliant financing needs of financing platform companies. Due to the city's policy, reasonably determine the minimum down payment ratio and minimum loan interest rate requirements for commercial personal housing loans, support the reasonable financing needs of real estate development enterprises and construction enterprises, and promote the stable and healthy development of the real estate market. Guide platform enterprises to carry out business in inclusive finance according to laws and regulations, so as to maximize the benefits for enterprises and the people. Financial institutions are required to implement the "Two Unswervings" and increase the proportion of private enterprise loans in newly issued enterprise loans.
In order to implement the spirit of the national conference on ensuring smooth logistics and promoting the stability of industrial chain supply chain, the notice requires that the role of civil aviation emergency loans should be given full play, scientific and technological innovation and refinancing should be accelerated, and the docking mechanism of credit and bond financing should be established to support smooth freight logistics and stable circulation of industrial chain supply chain. Financial institutions should take the initiative to follow up and effectively meet the financing needs of transportation logistics enterprises and truck drivers. If it is difficult to repay the loan temporarily, it is necessary to arrange the loan extension and renewal reasonably. For flexible employment subjects such as truck drivers, taxi drivers and online shop owners, we will increase support for entrepreneurial loans in comparison with individual industrial and commercial households and small and micro enterprise owners.
The "Notice" clarifies that the policy of facilitating foreign exchange receipts and payments of high-quality enterprises will be extended to the whole country, and a higher level of RMB settlement facilitation and enterprise foreign debt facilitation quota will be piloted. Domestic foreign exchange loans with trade and export background are allowed to be used for foreign exchange settlement. Improve the efficiency of cross-border RMB use by enterprises and improve the exchange rate hedging management services of enterprises. China Foreign Exchange Trading Center exempts small and medium-sized enterprises from handling fees related to foreign exchange derivatives trading in the inter-bank foreign exchange market. Increase support for export credit insurance.
Since this year, the People's Bank of China has increased its liquidity. In order to support small and micro enterprises to speed up the tax refund, the People's Bank of China has made great efforts to speed up the transfer of surplus to the central government. By mid-April, 600 billion yuan had been paid, which was mainly used for tax refund and transfer payment to local governments, equivalent to 600 billion yuan of base currency, basically equivalent to the overall RRR reduction of 0.25 percentage points. On April 15, the People's Bank of China announced that the RRR would be lowered by 0.25 percentage point, and it will invest about 530 billion yuan in long-term funds. From the perspective of the whole year, the People's Bank of China will pay a surplus profit of more than 1 100 billion yuan, and make efforts in advance in the payment schedule, allocate it in time according to the needs of tax refund, and cooperate with other monetary policy operations to effectively maintain a reasonable and sufficient liquidity. Since the beginning of this year, the People's Bank of China has guided the market interest rate to drop by 0. 1-0. 15 percentage point, driving the corporate loan interest rate to drop by 0.2 1 percentage point year-on-year to 4.4%, which is the lowest since statistics. We will increase the support of structural monetary policy tools such as refinancing, make good use of small-scale refinancing for agriculture and two carbon emission reduction tools, accelerate the refinancing of transportation and logistics, 200 billion for scientific and technological innovation, and 40 billion for inclusive pension, which is expected to drive financial institutions to increase loans by 654.38 billion yuan.
In the next step, the People's Bank of China and the State Administration of Foreign Exchange will work side by side with relevant departments, local party and government and financial institutions, solidly promote the accurate implementation of various policies, release policy dividends as soon as possible, and go all out to support the overall planning of epidemic prevention and control and economic and social development. (End)
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Notice on doing a good job in financial services for epidemic prevention and control and economic and social development
At the beginning of the COVID-19 epidemic, in accordance with the decision-making arrangements of the CPC Central Committee and the State Council, the People's Bank of China, together with relevant departments, timely issued the Notice on Further Strengthening Financial Support for the Prevention and Control of novel coronavirus (Yinfa [2020] No.29), proposing 30 measures such as monetary credit and financial services, which provided strong support for the prevention and control of the epidemic and the recovery and development of the real economy. At present, affected by the epidemic situation and domestic and foreign factors, China's economic development faces triple pressures of shrinking demand, supply shock and expected weakening. In order to further improve the financial support for epidemic prevention and control and economic and social development, relevant matters are hereby notified as follows:
First, give full play to the dual functions of monetary policy in aggregate and structure, and increase financial support for industries, enterprises and people affected by the epidemic.
(1) Maintain reasonable and sufficient liquidity. Through open market operations, standing loan facilities, refinancing, rediscounting and other monetary policy tools, we will provide sufficient liquidity, guide financial institutions to expand loan lending, and enhance the stability of total credit growth. Give full play to the reform efficiency of the quotation interest rate in the loan market, promote the steady decline of the comprehensive financing cost of enterprises, and promote financial institutions to make reasonable profits to the real economy. Branches of the People's Bank of China may appropriately increase the tolerance of deposit reserve assessment for financial institutions that are greatly affected by the epidemic.
(two) to provide differentiated financial services for industries that are greatly affected by the epidemic. Make good use of small-scale re-loans to support agriculture and rediscount policy, increase the amount of small-scale re-loans to support agriculture in a timely manner, and guide local corporate financial institutions to increase their support for contact service industries such as accommodation, catering, wholesale and retail, cultural tourism and other promising industries temporarily affected by the epidemic.
Strengthen information sharing with the competent departments of commerce, cultural tourism, transportation and other industries, organize various forms of government-bank-enterprise docking activities, help banks improve their ability to obtain customers, assess risks and control, and develop chattel mortgage and credit loan products according to the characteristics of enterprises.
(3) Increase financial support for trapped market entities such as small and micro enterprises. Give full play to the role of inclusive microfinance support tools. From June 65438+1 October1to the end of June 2023, incentive funds will be given according to 1% of the incremental balance of inclusive microfinance in local corporate financial institutions to encourage financial institutions to stabilize the stock of inclusive microfinance and expand the increment. Incorporate the Pratt & Whitney enterprise credit loans Support Program into the management of small-scale re-loans for supporting agriculture. Since 2022, the refinancing quota of 400 billion yuan originally used to support Pratt & Whitney micro-credit loans will continue to be used in a rolling way, and it can be further increased if necessary, so as to guide financial institutions to increase the proportion of credit loans and first-time borrowers.
Financial institutions should promote the model of active credit granting and loan repayment to better meet the needs of small and micro enterprises. It is necessary to refine the requirements of internal fund transfer pricing, bad tolerance, due diligence and exemption, performance appraisal, optimize the allocation of credit resources, strengthen the empowerment of financial technology, and accelerate the improvement of financial service capabilities of small and micro enterprises. In accordance with the principle of marketization, we should actively support trapped enterprises to resist the impact of the epidemic by providing medium and long-term loans, lowering interest rates, extending or renewing loans, and we should not blindly limit, withdraw or cut off loans. It is necessary to actively connect the credit information of enterprises in different fields such as finance, government affairs, public utilities and commerce related to the credit information platform, alleviate the information asymmetry between banks and enterprises, and improve financing efficiency.
(4) Improve the quality and efficiency of financial services for key areas and people in difficulty. Financial institutions should adjust regional financing policies, transfer pricing of internal funds, and implement differentiated performance appraisal methods to improve the level of financial supply in areas with severe epidemics.
For those who are hospitalized or isolated due to infection in COVID-19, those who need isolated observation due to epidemic prevention and control, and those who have temporarily lost their livelihood due to the epidemic, financial institutions should optimize credit policies in time, distinguish repayment ability and repayment willingness, distinguish short-term repayment ability and medium-and long-term repayment ability affected by the epidemic, and flexibly adjust repayment plans by reasonably delaying repayment time, extending loan term and delaying repayment of principal. For taxi drivers, online shop owners, truck drivers and other flexible employment subjects, financial institutions can increase support for entrepreneurial loans according to individual industrial and commercial households and small and micro enterprise owners.
(5) Providing convenient financial market services. Financial market infrastructure should further optimize the issuance, trading, clearing, settlement and other services, provide a variety of service channels, adjust some business development methods, and strengthen service guarantee. China Association of Inter-bank Market Dealers and Inter-bank Market Clearing House Co., Ltd. should make use of the "green channel" established in the early stage, simplify business processes, moderately relax the requirements of information disclosure standards, and increase support for bond issuing enterprises that are greatly affected by the epidemic.
(6) Ensuring the smooth flow of basic financial services. Strengthen cash management to ensure cash supply and cash safety and hygiene. Ensure the smooth operation of payment and clearing, liberalize the business limit of micropayment system as needed, extend the operation time of large-value payment system and central bank accounting data centralized system, and increase the guarantee of electronic payment services.
When necessary, financial institutions should handle the loan approval business for enterprises by working in the nearest outlets and holding video conferences. It is necessary to effectively protect the rights and interests related to public credit investigation, and continue to implement the relevant provisions that overdue loans can be submitted without overdue records. Smooth online consultation and complaint handling channels for financial consumers.
It is necessary to establish a cooperative working mechanism of finance, taxation, treasury and bank to ensure the smooth remittance channels of funds and the timely disbursement of funds for epidemic prevention and control. Treasury at all levels should implement the VAT deduction and tax refund policy to help enterprises get out of trouble. Smooth the channels for disbursement and return of tax refund funds, effectively ensure that tax refund funds reach market participants in a timely, accurate and safe manner, and promote market participants to enjoy policy dividends as soon as possible.
Second, give full play to the smooth role of finance in the circulation of the national economy and do a good job in financial support for the real economy.
(seven) do a good job in food security and financial security for the production and marketing of important agricultural products. Make good use of tools for supporting agriculture such as refinancing and rediscounting, increase the amount of refinancing in a timely manner, and guide local corporate financial institutions to increase their support for agriculture-related entities. Develop differentiated credit support measures around the whole industrial chain such as spring ploughing, grain circulation, warehousing and processing. Give play to the role of policy banks and ensure the supply of credit funds for central grain reserves in a timely manner. Encourage financial institutions to participate in grain market acquisition and actively meet the financial needs of acquisition and processing. Financial institutions should increase credit for the production, purchase, sale and processing of important agricultural products such as soybeans and oilseeds, and strengthen financial support for tackling key agricultural technologies such as seed sources.
(eight) do a good job in financial services for the supply of energy such as coal. Optimize and support special refinancing for clean and efficient use of coal, reasonably meet the needs of coal safety production and construction, coal purchase by power generation enterprises, coal reserves and other fields, and ensure the stable supply of energy such as electricity and coal. Do a good job in the implementation of carbon emission reduction support tools, increase support for the transformation and upgrading of large-scale wind power photovoltaic bases and surrounding coal-fired power, and support the economic transformation to green and low carbon while ensuring the safety of energy supply.
(9) Increase financial support for smooth logistics and shipping. Financial institutions should actively follow up and effectively meet the financing needs of transportation enterprises. Open up a "green channel" for transportation logistics enterprises undertaking epidemic prevention and emergency transportation tasks, optimize the credit approval process, and provide flexible and convenient financial services. Support financial institutions to issue and renew loans scientifically and reasonably for transport logistics enterprises and truck drivers who have temporary difficulties in repaying loans due to the epidemic. We should make good use of civil aviation emergency loans and other tools and take measures to increase credit support for airlines and airports.
(ten) to strengthen the financial support for the core enterprises of the industrial chain supply chain. The establishment of scientific and technological innovation refinancing, provide refinancing support for eligible scientific and technological innovation loans, and guide financial institutions to increase their support for technological development and technological transformation of enterprises. Establish a docking mechanism between credit and bond financing, and guide financial institutions to quickly respond to the financing needs of the core of the industrial chain and supporting enterprises. Standardize the development of supply chain finance business, give play to the role of financial instruments such as supply chain bills and accounts receivable financing service platforms, and support supply chain enterprises in financing.
(eleven) increase financial support for effective investment. Development and policy banks should increase financial support for key investment projects in combination with their own business scope. Financial institutions should take the initiative to connect major projects, increase support for new infrastructure construction such as water conservancy, transportation, pipe network, municipal infrastructure, short-board projects, fifth-generation mobile communication (5G), industrial internet, data center, etc., and promote new projects to start as soon as possible to achieve physical workload. It is necessary to reasonably purchase local government bonds and support local governments to moderately promote infrastructure investment. Under the premise of controllable risks and compliance with laws and regulations, the reasonable financing needs of financing platform companies shall be guaranteed in accordance with the principle of marketization, and loans shall not be blindly drawn, pressed or stopped to ensure the smooth implementation of projects under construction. Do a good job in financial support for private investment, government and social capital cooperation. The proportion of new loans from financial institutions to provinces (regions) with slow credit growth should increase steadily.
(twelve) actively support the healthy development of private enterprises. Adhere to the "two unwavering", and treat the state-owned economy and the private economy equally in financial policies such as loans and bond financing policies. Encourage financial institutions to establish long-term cooperative relations with private enterprises, formulate annual service targets for private enterprises, fully meet the reasonable financial needs of the private economy, and further increase the proportion of new loans issued by private enterprises.
Give full play to the leading role of the national financing guarantee fund, encourage qualified places to set up special funds or credit guarantee funds for loan risk compensation of private enterprises, and focus on providing credit enhancement services for the first loan, re-loan and renewal loan. Improve the financing support mechanism of private enterprise bonds and encourage financial institutions to increase investment in private enterprise bonds.
(13) Improve financial services in the housing sector. It is necessary to adhere to the positioning of "the house is for living, not for speculation", focus on the goal of "stabilizing land prices, housing prices and expectations", implement differentiated housing credit policies according to the city's policies, and reasonably determine the minimum down payment ratio and minimum loan interest rate requirements for commercial personal housing loans within its jurisdiction, so as to better meet the reasonable housing needs of buyers and promote the stable 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, and do not blindly borrow, cut off or suppress loans, and do not engage in "one size fits all" to keep real estate development loans stable and orderly. Commercial banks and financial asset management companies should do a good job in financial services for mergers and acquisitions of risk disposal projects of key real estate enterprises, carry out M&A loan business safely and orderly, increase financing support for M&A bonds, and actively provide financial advisory services for mergers and acquisitions.
On the basis of controllable risks, financial institutions should appropriately increase the support of working capital loans to meet the reasonable financing needs of construction enterprises, and do not blindly lend, cut off loans or pressure loans to maintain sustained and stable financing of construction enterprises.
(fourteen) to guide the platform enterprises to carry out business in inclusive finance according to law. On the basis of promoting the healthy development of online financial services for platform enterprises, give full play to the positive role of financial services for platform enterprises. Support platform enterprises to use Internet technology, optimize scene-based online financing products, and provide non-contact financial services for platform merchants and consumers. Encourage platform enterprises to give full play to the advantages of customer acquisition, data, risk control and technology, and increase support for first loans and credit loans in the fields of agriculture, rural areas and farmers. Guide platform enterprises to steadily reduce the level of interest and expenses, provide deferred debt service for loan customers affected by the epidemic, and maximize the benefits to the people. Supervise platform enterprises to standardize business cooperation with financial institutions, empower financial institutions to accelerate digital transformation and improve the efficiency and coverage of financial services.
(fifteen) to strengthen financial services to key consumer areas and new citizen groups. We will set up special refinancing loans for inclusive old-age care, provide refinancing support for eligible inclusive old-age care loans, and increase financial support for inclusive old-age care institutions. Guide financial institutions to standardize the development of consumer credit products and services, and increase support for medical and health care, pension, cultural tourism, new consumption, green consumption, county rural consumption and other fields. Encourage financial institutions to enrich large-value consumer financial products such as automobiles to meet the demand for reasonable consumption funds.
Financial institutions should make good use of the business guarantee loan policy, enrich the supply of credit products around the entrepreneurial forms, income characteristics and capital needs of new citizens, reduce the financing costs of new citizens, and stimulate the entrepreneurial employment vitality of new citizens. Actively innovate financial products and services for new citizens' consumption, vocational skills training, children's education, health insurance, old-age security, housing and other fields to enhance the equality and convenience of basic financial services.
The third is to optimize the handling of foreign exchange and cross-border RMB business and promote the stable development of foreign trade exports.
(sixteen) to improve the level of trade facilitation. Promote the facilitation policy of foreign exchange receipts and payments of high-quality enterprises nationwide, steadily carry out the pilot project of RMB settlement facilitation of trade and investment at a higher level, and encourage banks to include more high-quality small and medium-sized enterprises in the scope of facilitation policies. Further broaden the settlement channels, support qualified non-bank payment institutions and banks to provide efficient and low-cost cross-border fund settlement services for market entities related to new trade formats such as cross-border electronic commerce and foreign trade integrated services through trading electronic information.
(seventeen) to facilitate enterprises to carry out cross-border financing. Support qualified high-tech and specialized small and medium-sized enterprises to carry out pilot projects of foreign debt facilitation quotas. Further facilitate enterprises to borrow foreign debts and support non-financial enterprises to borrow multiple foreign debts with one foreign debt account. Support enterprises to register foreign debts online. Eligible non-financial enterprises in the pilot areas can directly register foreign debts and other capital projects in banks according to regulations.
Domestic foreign exchange loans with trade and export background are allowed to be used for settlement of foreign exchange, and enterprises should repay them with trade and export income in principle. If an enterprise fails to collect foreign exchange on schedule due to special circumstances, and there is no foreign exchange fund to repay domestic foreign exchange loans with trade and export background, the lending bank may go through the formalities of purchasing foreign exchange for the enterprise according to regulations. Financial institutions should actively innovate trade financial products, improve the level of trade financing services, and provide necessary financial support for enterprises' import and export trade.
(eighteen) improve the exchange rate risk management services of enterprises. 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 cross-border RMB settlement, optimize foreign exchange derivatives business management and services, and reduce hedging costs. Encourage qualified areas to strengthen cooperation between government, banks and enterprises, explore and improve the cost-sharing mechanism of exchange rate hedging, expand the government financing guarantee system to provide trade financing and exchange rate hedging business guarantees for enterprises, and enhance the ability of enterprises to cope with exchange rate fluctuations. China Foreign Exchange Trading Center exempts small and medium-sized enterprises from handling fees related to foreign exchange derivatives trading in the inter-bank foreign exchange market.
(XIX) Optimize cross-border business processes and services. In order to further improve the digital level of cross-border business, banks can provide cross-border settlement services through online and paperless methods such as reviewing electronic documents. Banks should improve the efficiency of cross-border receipt and payment under current account. Encourage banks to enrich RMB investment and financing products and facilitate enterprises to use RMB in foreign economic and trade activities and international cooperation.
(twenty) increase the support of export credit insurance. Give play to the role of export credit insurance in enhancing credit guarantee, guide insurance institutions to provide financial services for small and medium-sized micro-foreign trade enterprises, and further improve the efficiency of insurance claims. Deepen the cooperation among government, insurance, banks and enterprises, and provide richer cross-border trade background information and more convenient write-off services through the application scenario of "export credit insurance policy financing" of cross-border financial service platform, accurately serve foreign trade enterprises and expand the scale of policy financing.
(twenty-one) to enhance the convenience of investors' cross-border investment and financing. Promote unified access standards for inter-bank and exchange bond markets, simplify market access procedures, and improve the fund management of foreign investors investing in the domestic bond market. Optimize the fund management of overseas institutions issuing bonds (panda bonds) in China, and domestic related enterprises of panda bond issuers can borrow relevant panda bond funds according to actual needs. Further facilitate qualified foreign institutional investors (QFII) and RMB qualified foreign institutional investors (RQFII) to register domestic securities and futures investment funds.
Fourth, strengthen the party's leadership, and enhance the long-term sustainability and publicity effect of policies.
(22) Give full play to the leading role of Party building. The People's Bank of China, all units in the foreign exchange bureau system and all financial institutions should improve their political stance, unify their thoughts and actions with the decision-making arrangements of the CPC Central Committee and the State Council, adhere to the people-oriented principle and the supremacy of life, earnestly regard the overall situation of epidemic prevention and control and economic and social development as a major political task at present, strengthen organizational leadership, implement relevant policies, and make every effort to do a good job in financial services.
(23) Enhance the sustainability of financial support. Financial institutions should adhere to the principles of marketization and rule of law, comprehensively consider factors such as profit, provision and write-off, independently examine loans, make independent decisions, take risks at their own risk, and continue to do a good job in financial support. It is necessary to guard against moral hazard, strengthen capital flow and risk monitoring, and ensure that enterprises use funds legally and reasonably. All units of the People's Bank of China and the foreign exchange bureau system should solve the pain points and difficulties of policy implementation, actively respond to the reasonable demands of financial institutions and market entities, and improve the long-term mechanism for policy implementation. It is necessary to increase policy propaganda through the media and the Internet to ensure that policies benefit market players in a timely manner.
China People's Bank State Administration of Foreign Exchange
April 2022 18