Ten measures of the State Council ease the financing of enterprises

According to the Chinese government network news, Premier Li Keqiang hosted a State Council executive meeting on November 19th. The meeting specifically proposed ten measures to alleviate the high cost of corporate finance.

The meeting pointed out that since the State Council launched a series of measures in July this year, the relevant parties have done a lot of work, "funding difficulties, financing expensive" in some areas and areas showing a mitigating trend, but still a prominent problem. We must persist in reform and innovation, improve differentiated credit policies, improve the multi-level capital market system, and further alleviate the problem of high financing costs in a targeted manner to promote innovation and entrepreneurship and boost the income of the people. The first is to increase the flexibility of deposit-to-deposit ratio indicators, improve the management of consensual loans, improve the policies for the write-off of non-performing loans for small and micro enterprises, and enhance the ability of financial institutions to expand loans such as small and micro, “agriculture, rural areas and farmers”. The second is to accelerate the development of small and medium-sized financial institutions such as private banks, support banks to provide multi-level financial services through the community, small micro-branch and mobile banking, and encourage Internet finance to provide better services to small and micro, “three rural”. The third is to support the development of guarantee and re-guarantee institutions, promote the pilot of micro-credit guarantee insurance, and play a role in the credit enhancement of insurance policies. The fourth is to improve the performance appraisal mechanism of commercial banks to prevent credits from being “happy and disgusting” and unreasonably high interest rates and high fees. The fifth is to use credit asset securitization to revitalize the stock of funds and simplify the issuance procedures for small and micro, “three rural” financial bonds. Sixth, we will promptly introduce the reform plan for the stock issuance registration system, cancel the continuous profit conditions for stock issuance, and lower the threshold for listing of small and micro enterprises. Establish a rapid refinancing mechanism for capital markets and launch a pilot program for equity crowdfunding. Seventh is to support cross-border financing, so that more companies and global low-cost funds "hand in hand." Innovate the use of foreign exchange reserves to support the development of the real economy and the “going out” of Chinese equipment. Eighth is to improve the credit system, improve the credit transparency of small and micro enterprises, and make the “money way” of enterprises with good credit and prospects broad. Nine is to speed up the reform of interest rate marketization, establish a self-discipline mechanism for market interest rate pricing, and guide financial institutions to rationally adjust the “false high” loan interest rate. Ten is to improve the supervision and accountability mechanism, to curb irregular charges, illegal fund-raising and so on to raise financing costs. Use a good financing environment to enhance the company's ability to participate in market competition.

Many industry experts interviewed by the Economic Information Daily believe that the ten measures are very specific, from regulatory adjustments to broadening financing channels, revitalizing the stock of funds, enriching the means of credit enhancement, and requesting the management of financial institutions themselves. The policy system to reduce financing costs will run through the economic structure optimization and financial reform under the “new normal”.

Adjusting the loan-to-deposit ratio indicator elasticity will increase

The meeting pointed out that since the State Council launched a series of measures in July this year, the relevant parties have done a lot of work, "funding difficulties, financing expensive" in some areas and areas showing a mitigating trend, but still a prominent problem. We must persist in reform and innovation, improve differentiated credit policies, improve the multi-level capital market system, and further alleviate the problem of high financing costs in a targeted manner to promote innovation and entrepreneurship and boost the income of the people.

This time, at the regulatory level, the meeting proposed the direction of adjustment for the first time for the central bank's agreed loan management and the CBRC's loan-to-deposit ratio. The meeting pointed out that increasing the loan-to-deposit ratio index flexibility and improving the satisfaction of loan management. The "Economic Information Daily" reporter learned from many investigations that in recent years, the central bank's corporate banking institutions that have agreed to loan adjustments have felt the constraints from the scale control of loans. This year is particularly obvious. The problem of concentration is that the loan scale is not enough. The rhythm is too average and it is difficult to match the market capital needs.

In the central regions of Jiangsu, Zhejiang, Henan, Sichuan and other places, the banking industry who was interviewed by the Economic Information Daily said that “even if the direction is reduced, the liquidity is loose, but the quota is limited, and the bank is still difficult to put loans.” People believe that "the amount is very high, but subject to the deposit-loan ratio, in the case of huge pressure on deposit disintermediation, it is difficult for banks to lend more funds to lend."

China's entity enterprises mainly rely on indirect financing, mainly relying on bank loans. However, bank credit is limited by four factors: the scale of management of desirable loans, the assessment of deposit-loan ratio, the restriction of their own capital, and the owner's equity. “There is no shortage of banks in China, but in some places, the ratio of deposits and loans of city commercial banks, rural commercial banks and even rural banks is very low, but it is limited by the control of loan size and it is difficult to lend.” A city commercial bank executive in Sichuan Province "The reporter said.

In response to the loan-to-deposit ratio assessment, Lian Ping, chief economist of Bank of Communications, pointed out that “from the perspective of economic development, the current loan scale is needed; from the perspective of commercial banks themselves, they are not willing to reduce the amount of loans. However, the growth rate of deposits is Significantly slowing down, commercial banks have adopted various means, such as wealth management products. At the end of the month, the end of the season and the end of the year, the funds will eventually be returned to the so-called deposits that meet the requirements of deposit-loan ratio, which will inevitably lead to an increase in market interest rates. Therefore, it is imperative to adjust the deposit-loan ratio regulation."

Transfusion financing channels expand to ease debt risk

In fact, since the beginning of this year, there have been obvious signs of fluctuations in credit supply. In October, the amount of new RMB credit was 548.3 billion yuan. Among them, although the medium and long-term loans of enterprises were 223.2 billion yuan, a lot more than the same period last year, industry analysts believe that In October this year, the credit line was relatively loose, and the growth of medium and long-term loans was not ideal. The chain slowed down and credit expansion was not good.

Behind the weak and volatile loan volume is the accumulation of corporate debt risk, and the bank's reluctance to lend is parallel with the high corporate debt ratio. “The debt ratio of our government is not high, and the debt ratio of residents is very low, but the debt ratio of enterprises is very high. The proportion of corporate debt in China exceeds 120%, while that in the United States is about 72%, and in Japan is about 99%. Italy is about 82%, Australia is about 59%, Canada is about 53%, and Germany is only about 49%. It cannot be denied that China's production and management, and even GDP growth is too much dependent on bank credit is a big problem." Yang Kaisheng, former president of the Industrial and Commercial Bank of China and invited consultant of the China Banking Regulatory Commission, pointed out.

Luo Zhongwei, a researcher at the Institute of Industrial Economics of the Chinese Academy of Social Sciences, told the Economic Information Daily that "the biggest problem facing SMEs today is not the lack of market demand, but the collapse of the capital chain. Now the market situation is not good, corporate inventories are rising, and financing is urgently needed. However, financial institutions are more cautious in lending. Nowadays, enterprises are encouraged to transform and upgrade. The core is to have capital investment. There must be more funds to support R&D and fixed asset upgrades than in normal business situations. However, in the current situation, the difficulties are very Big."

Industry experts believe that the financing model of relying solely on bank lending is not sustainable. On the one hand, it should support the development of private financial institutions, open up opportunities for direct financing in the capital market, and on the other hand, enrich the means of credit enhancement. In this regard, the meeting re-emphasized "accelerating the development of small and medium-sized financial institutions such as private banks, supporting banks to provide multi-level financial services through the community, small micro-branch and mobile banking, and encouraging Internet finance to provide better services to Xiaowei and Sannong. In addition to standardizing services, it also proposed "supporting the development of guarantee and re-guarantee institutions, promoting the pilot of micro-credit guarantee insurance, and exerting the credit-enhancing effect of policies on loans."

A senior city commercial bank in the eastern region told the Economic Information Daily that “for some small and technological enterprises, as well as some light asset companies and agricultural enterprises that lack collateral, the loan amount is small and scattered, if the bank gives low interest rate loans. Therefore, it is difficult to cover the risks. Therefore, it is very necessary to introduce guarantee insurance to a certain extent to provide a risk prevention line. Some places are already studying agricultural commercial insurance pilots."

In terms of borrowing capital market, the meeting called for “emphasizing the reform of the stock issuance registration system, canceling the continuous profitability of stock issuance, lowering the threshold for listing of small and micro enterprises and establishing a rapid refinancing mechanism for capital markets. Financing pilots.” Industry analysts believe that in the absence of a small business, the introduction of private equity, funds and other equity financing can also be tried.

At the same time, the meeting also made clear that it supports cross-border financing, allowing more enterprises to “hand in hand” with global low-cost funds, innovating the use of foreign exchange reserves, supporting the development of the real economy and “going out” of Chinese equipment.

Supporting multiple measures and creating a good financing environment

In addition to expanding the risk of financing channelization, the revitalization of financial institutions' stock funds is also the highlight of the current “new normal” to promote the gold reform. Liu Yuhui, professor of the Chinese Academy of Social Sciences and chief economist of GF Securities, judges the stock of the financial system in the next year. Fund regulation will run throughout the year.

In response to the revitalization of funds, the meeting proposed to improve the non-performing loans for small and micro enterprises to write off the pre-tax and other policies, strengthen the ability of financial institutions to expand loans such as Xiaowei and 'three rural'; use credit asset securitization to revitalize the stock of funds. To simplify the issuance procedures for Xiaowei and 'Sannong' financial bonds."

Liu Renjie, a senior expert at ICBC's Jiangsu Branch, pointed out that “in fact, in recent years, the banking industry has faced high-debt and high-leverage enterprises. Many banks' loans have been used for the company's bottom-up funds, and the project loan real-paying requirements have lost the basis. The actual operation of products such as trade finance is often misnamed; even in order to complete business tasks, letting corporate information, report auditing falsification, and overestimating the value of collateral, the loss of control in the banking sector exacerbates financing risks and promotes borrowing costs and society. The transaction costs have risen further."

Therefore, the meeting also put forward specific requirements for the financial institution's own management around reducing the financing cost, including “improving the performance appraisal mechanism of commercial banks, preventing credits from being overwhelmed and unreasonably high interest rates and high expenses; accelerating the interest rate market Reform, establish a market interest rate pricing self-discipline mechanism, and guide financial institutions to rationally adjust the 'virtual high' loan interest rate."

In addition, the meeting also proposed to improve the credit system, improve the credit transparency of small and micro enterprises, and make the "good money" of credit-promising and promising enterprises broad; improve the supervision and accountability mechanism, curb irregular charges, illegal fund-raising and so on to raise financing costs. Use a good financing environment to enhance the company's ability to participate in market competition.

"In recent years, many enterprises have broken their capital chains. The overall environmental downturn has made the credit environment of financing very fragile. Therefore, in the future, in terms of improving credit reporting, the regulatory authorities and financial institutions should jointly promote it." A bank insider said.

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