Chengdu.cn:

How about the growth rate of loans in the manufacturing industry and for new and high-tech enterprises? What kinds of supportive measures did the NFRA take? What else will you do to encourage banking and insurance institutions to provide more financial resources to sci-tech innovation and advanced manufacturing? Thank you.

Li Mingxiao:

The NFRA has adhered to the fundamental purpose that finance is to serve the real economy. Focusing on key areas like sci-tech innovation and advanced manufacturing, we have continuously improved financial supervision policies, encouraged financial institutions to increase financial support and advance financial services, to practically promote high-quality economic and social development.

In the aspect of sci-tech innovation, we issued a circular to improve full life-cycle financial services for tech companies, allocating more financial resources to advance sci-tech innovation, as well as providing differential and various financial services to meet the needs of tech firms at different development stages. We also encourage banking institutions to diversify models for IP pledge financing services and the means of insurance to offer protection so as to attract more tech companies to apply for their initial loans with banks. We also encourage banking and insurance institutions to set up branches in places where science and technology resources are concentrated, with a focus on providing better financial services for tech firms. We have improved the mechanism applied for loans to tech companies which ensures that those who have fulfilled their duties are not held accountable. Tolerance of non-performing loans to small- and micro-technology enterprises can be relaxed by no more than 3 percentage points compared with the other loans. By the end of 2023, the balance of loans granted to new and high-tech enterprises registered an increase of 20.2% year on year. Among those, medium- and long-term loans and credit loans both accounted for more than 40%.

In the aspect of advanced manufacturing, we have improved key monitoring and daily supervision and worked together with relevant departments to jointly issue a series of policies, such as guidelines on quality projects in the manufacturing industry and guidelines on accelerating the transformation and upgrading of traditional manufacturing industry. In doing so, the policy environment of high-quality development in the manufacturing sector has been optimized, and the efforts to increase medium- and long-term loans for manufacturing companies have been made an institutionalized and regular practice. We have also guided financial institutions to give priority to supporting high-quality development in manufacturing through themed conferences and special training, which provided concrete support for the manufacturing sector to move toward higher-end, smarter, and greener production. As of the end of 2023, the balance of loans granted to manufacturing companies increased 17.1% year on year, of which the balance of medium- and long-term loans grew 29.1% year on year.

Next, the NFRA will fully implement the decisions and plans of the CPC Central Committee and the State Council, make all-out efforts to promote techfin, and promote the building of a multilevel techfin service system. Under the premise of keeping risks under control, we will work with relevant departments to steadily advance the construction of financial reform pilot zones for sci-tech innovations, intensify financial support for the manufacturing industry, and guide financial institutions to fully implement all measures and requirements. Efforts will be made to diversify financial products and services, strengthen the support for sci-tech innovation and advanced manufacturing, and foster new productive forces, thereby providing strong financial support for accelerating the establishment of a modern industrial system. Thank you!