SCIO briefing on China's financial statistics in H1 2023
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E-mail China.org.cn, July 28, 2023
CCTV:
On June 30, the PBC decided to raise the quotas for re-lending and additional subsidized loans to support agriculture and small enterprises by a total of 200 billion yuan to ramp up financial support for agriculture, rural areas, and farmers, small and micro businesses, and private enterprises. Since the beginning of this year, what measures have been taken to provide financial support for small and micro businesses and private enterprises? How effective have these measures been? Thank you.
Zou Lan:
I will take your questions. Since the start of this year, the PBC has resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council. We have fully grasped the guiding principles of the 20th CPC National Congress and the Central Economic Work Conference. In doing so, we have earnestly worked to implement the commitment to consolidating and developing the public sector while also encouraging, supporting, and guiding the development of the non-public sector. Our top priority has been to provide financial support for the development of micro and small businesses and private enterprises, which has yielded positive results.
First, the PBC has employed a variety of policy instruments to fully support the development of micro and small businesses and private enterprises. The PBC has continued to augment support for re-lending. On June 30, the PBC increased the quotas for re-lending and additional subsidized loans to support agriculture and small enterprises by a total of 200 billion yuan. The PBC has continued to leverage instruments to support inclusive loans to micro and small businesses (MSBs), providing locally incorporated financial institutions with 39.8 billion yuan in funds and increasing inclusive MSB loans by 2.2 trillion yuan. Recently, the PBC has extended the term for the implementation of instruments to support inclusive loans to micro and small businesses from the end of June this year to the end of 2024, and made some improvements and adjustments, continuing to encourage banks to support the financing of micro and small businesses.
Second, the PBC has continued to implement the project to enhance its capacity to provide financial services for micro, small and medium enterprises (MSMEs). The PBC has guided financial institutions to optimize their resource allocation and internal policy arrangements, enhanced technological applications, and advanced the establishment of a sustainable mechanism for promoting the confidence, willingness, ability, and professionalism of banks in issuing loans. Currently, national commercial banks offer a discount of no less than 0.5% in funds transfer pricing for MSB loans, and the weight of inclusive finance in the integrated performance evaluation of the branches and subsidiaries of banks is no less than 10%.
Third, the PBC has opened up diversified financing channels to ensure that enterprises have easier access to financing. The PBC has promoted the CRC Receivables Financing Service Platform and supported MSMEs to secure funds 28,000 times from January to June this year, amounting to 863.6 billion yuan. It has actively leveraged the functions of the supply chain bill platform to support enterprises in obtaining financing through bank discounting from January to June this year, amounting to 12.8 billion yuan. The PBC has upgraded and expanded the instruments for supporting bond financing for private businesses and has supported private enterprises to issue bonds totaling 28.4 billion yuan since the expansion was launched in November 2022. The PBC has increased the sources of credit support for small businesses from banks and, from January to June, has supported commercial banks to issue special financial bonds worth 124 billion yuan for MSBs.
Through the joint efforts of all parties, the financing of micro and small businesses and private enterprises has seen increases in volume, expanded coverage, and reduced prices. As of the end of June 2023, the outstanding inclusive MSB loans reached 27.7 trillion yuan, marking a year-on-year increase of 26%. A total of 59.35 million MSBs received these inclusive loans, reflecting a year-on-year increase of 13.3%. In May, the weighted average interest rate for newly issued inclusive MSB loans was 4.57%, marking a relatively low historical level.
Next, the PBC will thoroughly study and implement the guiding principles of the 20th CPC National Congress. We will resolutely work to consolidate and develop the public sector while encouraging, supporting, and guiding the development of the non-public sector. We will continue to do a good job in providing financial support for the development of micro and small businesses and private enterprises. On one hand, the PBC will continue to promote the implementation of instruments supporting inclusive MSB loans, leverage the role of re-lending for small businesses, and guide financial institutions to expand loans to micro and small businesses and private enterprises. On the other hand, we will further carry out the project to enhance the capacity to provide financial services for MSMEs, continue to strengthen synergy among relevant departments, and improve supporting mechanisms for sharing enterprise credit information and financing guarantees. This will enhance the willingness, ability, and sustainability of financial institutions to provide services for micro and small businesses and private enterprises.
Thank you!
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