Ministry of Commerce, CBRC on the Support of Business Financing Development Guidance

 

Shang-zhi-fa No. [2011] 253

The provinces, autonomous regions, municipalities directly under the central government, cities specifically designated in the state plan and Xinjiang production and Construction Corps business department,

The provinces, autonomous regions, municipalities directly under the central government, the city banking regulatory bureau of the city plan,

The provinces, autonomous regions, municipalities directly under the central government, the financing guarantee agencies regulatory department,

The National Development Bank, all policy banks, state-owned commercial banks, joint-stock commercial banks, postal savings bank:

    To alleviate the difficulty on medium and small business enterprise financing, deepen the cooperation of banks and commerce, liven current, enlarge consumption, according to the Ministry of Commerce, the Ministry of finance, people's Bank of China, CBRC, CIRC’s " on promoting the healthy development of credit sales advice" (Shang-zhi-fa [2009] 88) spirits, now put forward the following opinions on supporting the business area development:

 

    Firstly, a full understanding on the significance of the development of business area

    The development financing of business area is a major measure to alleviate SME financing difficulty. Since reforming and opening, our country’s business area develop rapidly, in form of commodity trading market, commercial district, logistics, e-commerce platform, already became important carriers for the survival and development of our country medium and small business service enterprise. According to incomplete statistics, there is more than 4500 trading markets having more than 100 million trading volume; there is more than 70 trading markets having more than 10 billion trading volume; nearly 600 logistics zones already built, under construction and in planning, the number of e-commerce platform is about 23 thousand. However, because the main body in business areas is a small and medium enterprises, poor mortgage ability, uncompleted credit record, difficulty in financing. These are comparatively obvious; urgently need to explore the new financing model to small and medium-sized business service enterprise characteristics. The development of business area financing helps to enhance the small and medium-sized business’s financing ability, alleviate the financing difficulties of small and medium-sized business, promote the healthy development of enterprises; contribute to the promotion of business area development, enhance the operation of the main cohesive force, promote industrial relevancy, integration of industry value chain, promoting trade service industry structure adjustment and upgrade, thereby driving the tax revenue, employment growth and the development of regional economy, liven current, enlarge consumption to achieve the strategic goal. At the same time, also contribute to the banking financial institutions and financing guarantee agencies to cultivate the customer groups with high-quality long-term stability, to expand the scale of credit, reduce the financing risk.

 

    Secondly. Promote financing mode suitable to business area

     (1) To support banks to carry out the financing business. The banking regulatory departments to encourage and guide the banking financial institutions, in accordance with the principle of the risk control, sustainable operation, to reasonably layout business area business outlets. Banking financial institutions shall, according to the main characteristics of the commerce, innovate the financing products and tools, and specifically base on the features of the business area, to improve approval process, improve the efficiency of examination and approval, to strengthen financial services to all bodies in business area.

     (2) To positively develop the financing guarantee in business area. The financing guarantee agencies regulatory departments should encourage the financing guarantee agencies with good operating condition, strong risk control ability and obtaining a business license, to enter into business area, vigorously carry out the financing guarantee business to trading enterprises; support to establish risk sharing mechanism among the financing guarantee agencies, business area, re-guarantee agencies and banking financial institutions as agreed.

     (3) Vigorously promote financing on supply chain. The commerce departments should encourage centralized warehousing business area to establish logistics monitoring platform; to guide the third party, logistics supervision Service Company to develop supervision service on warehouse receipt, inventory pawn. Banking financial institutions shall effective integrate and use the enterprises information in supply chain, to carry out the chattel mortgage financing business, to develop supply chain financing and other financial products.

     (4) To deeply explore other financing mode. Research to promote shops’ the right of operation, right of lease as pawn for financing. The commerce departments should encourage the qualified enterprises, through the issuance of corporate bonds, to participate in financing lease, with the help from the main board and GEM Listing to financing, to broaden the financing channels.

 

     Thirdly. To establish the business and cooperation mechanism of financial institutions

     (1) To promote the cooperation of entities business area and financing institutions.  The commerce authorities shall work together banking regulatory authorities and the financing guarantee agencies supervision department, to encourage business area management agencies and banking financial institutions, the financing guarantee agencies, financial leasing companies, pawn shops, commercial factoring companies to establish various forms of cooperation, to support business area to provide various types of credit information to financing institutions, create a credit channel for the financing agencies to obtain information of entities, to lower the credit costs. At the same time, to help financial institutions publish the related financing business and products, to promote its development.

     (2) To promote the cooperation of virtual business area and financial institutions. The commerce authorities shall work together banking regulatory authorities and the financing guarantee agencies supervision department, to encourage all kinds of network business, community, network trading platform to build a virtual business area, and to carry out business credit certification and evaluation in it. banking regulatory authorities and the financing guarantee agencies supervision department should guide the banking financial institutions and financing guarantee agencies to use the evaluation information and authorized access to online trading information, scientific evaluation of network management main body credit status, and to provide safe, convenient financial service.

 

    Fourthly. Create favorable financing service environment

     (1) To study and formulate the regional supportive policies and measures. The commerce authorities shall work together banking regulatory authorities and the financing guarantee agencies supervision department, to further understand its financing basic situation, development trends, demand and characteristics within its administrative region, establish basic information archives, research and formulate specific policy to promote financing development in business area.

     (2) To enhance the financial support. The commerce authorities shall work together banking regulatory authorities and the financing guarantee agencies supervision department, with reference of SME development special fund allowance object, standard and scope, in combination with enterprises and the actual situation of institutions which provide the service for the business area, as, banking financial institutions, financing guarantee agencies, credit public service platform and business credit service organization, formulate corresponding supportive policy, strive for the support from local financial, to ensure that the work of the funding in place.

     (3) To guide the business area establish entities credit archives. The commerce authority should guide the qualified business area administrative authorities, buildup credit files for entities, including the basic information, operation status, breach of promise, administrative punishment information, to realize dynamic management to business area’s development, to improve the business area organization and credit management level.

     (4) To enhance comprehensive management level to entities. The commerce authorities need to guide business area administrative institutions to carry out various forms of credit management training, enhance entities’ credit management level; to assist to publish the trade credit insurance, commercial factoring business, to encourage entities to use marketwise tools to prevent the credit risk. At the same time, encourage and support business credit service institutions provide service for entities service, help to strengthen credit system construction, establish a standardized financial regulation, transaction records and the risk management mechanism, and improve the credit rating.

     (5) To strengthen business area overall risk control ability. The commer authorities should actively promote the construction of the non-profited credit public service platform; support it providing services for the entities in business area. Support business area to participate in provincial or regional enterprise credit information platform construction, strengthen the communication with the relevant departments, trade associations as well as credit agency, establish business credit information sharing mechanism, solve the problems that the entities are unable to effectively judge the credit status of partners because of the credit information closed, dispersion, asymmetry. Encourage qualified business area administrative institutions to establish customer credit management system, credit sale management system, improve the entities’ risk identification, risk prevention capacity.

     (6) To introduce credit services institutions. The commerce authorities need to guide business area administrative institutions to introduce the credit investigation and assessment institutions, account management institutions, training institutions and other credit services institutions in, so that make the entities to get strong support of credit, create the financing channel, on promotion of effective union of commercial credit and financial credit.

     (7) To carry out a wide range of integrity education. The commerce authorities need to have extensive business integrity demonstration activities to create, promote the values of honesty and self-discipline of entities, and improve the business area credit level.

     (8) To regulate financial institutions competition order. The banking regulatory departments, the financing guarantee agencies supervision departments should supervise the banking financial institutions and financing guarantee agencies in the business area to develop reasonable and orderly competition, create a harmonious environment.

     It is significant to develop business area financing. all local commerce authorities, banking regulatory departments, the financing guarantee agencies supervision department, should attach a great importance to the business area financing work, strengthen the organization and leadership, innovate work method, step up promotional efforts, sum up experience in time, sending information, and strive to create a good financing service environment, improve the competitiveness of medium and small business enterprises. All provinces, autonomous regions, municipalities directly under the central government, the banking regulatory bureau, the financing guarantee agencies supervision department, please forward this proposal to their agencies, banking financial institutions and financial guarantee agencies.

 

The people's Republic of China Ministry of Commerce, the China Banking Regulatory Commission