On May 23rd, the Information Office of the People’s Government of Shaanxi Province held a press conference to introduce the relevant situation of assisting enterprises in financing and overcoming difficulties, as well as promoting the high-quality development of the industrial economy. The conference was attended by Zhang Kangning, Deputy Director of the Department of Industry and Information Technology of Shaanxi Province, Li Tong, Deputy Governor of the People’s Bank of China Shaanxi Branch, Huang Xin, Director of the Financing Service Division of the Department of Industry and Information Technology of Shaanxi Province, and Liu Wei, Deputy Director of the Credit Policy Management Division of the People’s Bank of China Shaanxi Branch.
Industrial Growth and Financial Support
In the first quarter of this year, the added value of industrial enterprises above designated size in Shaanxi Province increased by 9.9%, which was 2.1 percentage points faster than that of last year and 3.4 percentage points higher than the national average. The Department of Industry and Information Technology of Shaanxi Province has been focusing on building key industrial chains and clusters. In collaboration with the People’s Bank of China Shaanxi Branch, it has matched 24 banking institutions as lead and participating banks. The department has innovated industrial chain and supply chain financial products and services for 34 key industrial chains and 1,794 key enterprises across the province, and formulated special credit policies for supply chain finance. This has effectively injected funds into small and medium-sized enterprises in the upstream and downstream of key industrial chains, reduced the comprehensive financing costs of enterprises, and improved the overall operational efficiency and running capacity of the industrial chains.
In 2024, the loan balance of the 34 key industrial chains in the province was 516.11 billion yuan, and the newly issued loans for the whole year were 320.2 billion yuan. By the end of the first quarter of this year, the outstanding loan balance for key industrial chains in the province was 556.322 billion yuan, and the newly issued loans were 115.81 billion yuan. In the first quarter of this year, the cooperative banks issued a total of 113.53 billion yuan in new credit, supporting a total of 128,300 small, medium, and micro enterprises in Shaanxi Province. As of now, the National Industry-Finance Cooperation Platform has cumulatively registered 6,989 enterprises in Shaanxi Province, helping 286 enterprises raise 8.653 billion yuan in financing.
Implementation of Monetary Policy Measures
Since the beginning of this year, the Shaanxi Branch of the People’s Bank of China has implemented a moderately loose monetary policy, strengthened credit policy guidance, and further enhanced the intensity and sustainability of financial support for the real economy. The branch has actively implemented the recent package of monetary policy measures of the People’s Bank of China and the spirit of the provincial meeting on promoting the high-quality development of the private economy, intensifying efforts to promote the implementation of various financial policies benefiting enterprises in Shaanxi.
On May 7th, the People’s Bank of China released a package of ten monetary policy measures in three categories:
Quantitative Policy
Starting from May 15th, the reserve requirement ratio for financial institutions was cut by 0.5 percentage points. The reserve requirement ratio for auto finance companies and financial leasing companies was temporarily reduced from 5% to 0%. This reserve requirement ratio cut is estimated to release about 20 billion yuan of long-term funds for the province.
Price-Based Policy
Starting from May 7th, the interest rates of structural monetary policy tools such as relending for agriculture and small businesses were cut by 0.25 percentage points to encourage banks to step up their support for economic structural transformation.
Starting from May 8th, the 7-day reverse repo operation rate in the open market was cut by 0.1 percentage point, driving the Loan Prime Rate (LPR) on May 20th to decline by 0.1 percentage point simultaneously.
Starting from May 8th, the interest rate for personal housing provident fund loans was reduced by 0.25 percentage points, which is conducive to supporting the rigid housing demands of resident families.
Structural Policies
The re-lending quota for scientific and technological innovation and technological transformation was increased by 300 billion yuan to support the implementation of large-scale equipment renewal and the policy of exchanging old consumer goods for new ones.
The re-lending quota for scientific and technological innovation and technological transformation was increased by 300 billion yuan to support the implementation of large-scale equipment renewal and the policy of exchanging old consumer goods for new ones.
The Shaanxi Branch of the People’s Bank of China promptly held a meeting to promote a package of monetary policy measures, ensuring that all policies are fully implemented and take effect in Shaanxi.
In the first quarter, the Shaanxi Branch of the People’s Bank of China and its affiliated branches cumulatively issued over 23 billion yuan in re-lending and re-discounting to financial institutions to support agriculture and small businesses. The Agricultural Bank of China has implemented a differentiated deposit reserve ratio policy for its county-level rural finance divisions, releasing approximately 1.5 billion yuan of long-term funds across the province.
By the end of March 2025, the balance of RMB loans in the province exceeded 6 trillion yuan, increasing by 7.35% year-on-year. The new loans in the first quarter were 199.845 billion yuan.
Growth in Science and Technology Enterprise Financing
As of the end of March 2025, the balance of domestic and foreign currency loans of science and technology enterprises in the province was 414.603 billion yuan, increasing by 13.07% year-on-year, which was 5.7 percentage points higher than the growth rate of all domestic and foreign currency loans. The growth rate of loan financing for key industrial chains in the province was 11.75%, 4.4 percentage points higher than the growth rate of all loans. Among the 34 industrial chains, the loan growth rate of 20 industrial chains was higher than the average growth rate of loans in the province. The loan balance of private enterprises in the province was 1.22 trillion yuan, increasing by 11.15% year-on-year. The balance of inclusive loans to micro and small enterprises was 613.553 billion yuan, increasing by 17.19% year-on-year.
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