On May 22nd, the Information Office of the State Council held a press conference to introduce the relevant situation of the science and technology finance policy. Guo Wuping, spokesperson for the Financial Regulatory Administration and director of the Policy Research Department, highlighted the significant growth in loans to high-tech enterprises and the upcoming expansion of the long-term investment reform pilot programs for insurance funds.
Growth in Loans to High-Tech Enterprises
As of the end of the first quarter of this year, the balance of loans to high-tech enterprises in the banking industry reached 17.7 trillion yuan, marking a 20% year-on-year increase. This growth rate is significantly higher than the average level of all loans, indicating a strong focus on supporting the technology sector.
Expansion of Long-Term Investment Reform Pilot Programs
Regarding the pilot program for the long-term investment reform of insurance funds, Guo Wuping detailed the scale of the first three batches. The first batch has a scale of 50 billion yuan, the second batch is 112 billion yuan, and the third batch of 60 billion yuan will be approved soon. The total scale of the three batches will reach 222 billion yuan, demonstrating a substantial commitment to long-term investment in the technology sector.
Strengthening the “Three Constructions” to Support Technology-Based Small and Micro Enterprises
Enhancing Strategic Integration and Management Mechanisms
Guo Wuping emphasized that the Financial Regulatory Commission will continue to collaborate with relevant departments to guide banking and insurance institutions in strengthening the “three constructions.” These include:
Incorporating Technology Finance Services into Strategic Planning and Annual Key Tasks: This ensures that technology finance services are not only part of the long-term vision but also prioritized in the annual operational plans of financial institutions. By doing so, technology finance becomes an integral component of their core business strategies.
Establishing a Relatively Independent Management Mechanism for Technology Finance
Business: Creating a dedicated management structure allows for more focused and specialized handling of technology finance operations. This mechanism can tailor services and products specifically to meet the needs of technology-based enterprises, enhancing the efficiency and effectiveness of financial support.
Granting Appropriate Authorization to Specialized and Characteristic Branches of Technology Finance: Empowering specialized branches with the necessary authority to make decisions and allocate resources can streamline processes and expedite the delivery of financial services. This decentralization of decision-making can lead to quicker responses to the evolving needs of technology-based small and micro enterprises.
These measures are designed to enhance the support for technology-based small and micro enterprises, ensuring they receive the necessary financial backing for growth and innovation.
Support for Technology-Based Small and Micro Enterprises
Recently, the State Financial Regulatory Commission, in conjunction with relevant departments, jointly issued the “Several Measures to Support the Financing of Small and Micro Enterprises,” which also apply to technology-based small and micro enterprises. Guo Wuping outlined the following steps:
Promoting the Coordination Mechanism for Supporting Financing of Small and Micro Enterprises to Tilt and Connect with Assistance Resources in the Field of Science and Technology: This involves aligning the support mechanisms to ensure that resources are directed towards technology-based enterprises. By doing so, these enterprises can benefit from specialized financial assistance tailored to their unique needs.
Guiding Banks and Insurance Institutions to Give Preferential Treatment in Performance
Assessment, Internal Fund Transfer Pricing, and Other Aspects: Banks and insurance institutions are encouraged to provide preferential terms in performance assessments and internal fund transfer pricing. This can reduce the cost of capital and improve the financial viability of technology-based small and micro enterprises.
Implementing Differentiated Regulatory Requirements in Terms of Due Diligence Exemption: Tailoring regulatory requirements to account for the unique risks and opportunities associated with technology-based enterprises can provide a more flexible and supportive regulatory environment. This can encourage financial institutions to engage more actively with these enterprises without undue regulatory burden.
Summary
The initiatives outlined by Guo Wuping reflect a comprehensive approach to supporting technology-based SMEs. By strengthening the “three constructions” and implementing supportive measures, the Financial Regulatory Commission aims to create a more favorable environment for these enterprises. This includes strategic integration, independent management mechanisms, and specialized branch authorization to enhance operational efficiency and responsiveness. Additionally, the coordination mechanism, performance incentives, and differentiated regulatory requirements are designed to facilitate access to financing and foster innovation and development among technology-based SMEs.
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