Source: Securities Times.
Author: Guo Bohao

On October 14, the State Council Information Office held a press conference, attended by leaders of multiple departments including the State Administration for Market Regulation, Ministry of Industry and Information Technology, Ministry of Justice, and the China Banking and Insurance Regulatory Commission, to introduce the relevant efforts to increase support for enterprises.

Let's take a look at the key points of the press conference:

1. The issuance of the "Opinions on Guiding Online Trading Platforms to Play a Positive Role in Traffic and Supporting the Development of Small and Micro Businesses", encouraging online trading platform companies to reasonably allocate traffic resources.

2. Implementing classified assistance for individual industrial and commercial households, the State Administration for Market Regulation, together with relevant departments, will introduce more targeted policies in areas such as taxation, social security, employment, and financing.

3. Accelerate the revision process of the "Anti-Unfair Competition Law" to prevent and stop unfair competition practices.

4. Implement the "Regulations on the Review of Fair Competition", promote the clearance of policy measures that hinder the unified market and fair competition, and further unleash the potential of China's super-large market scale.

5. The State Administration for Market Regulation will work with relevant departments to innovate the implementation of quality financing and credit enhancement policies, promote credit enhancement mechanisms based on enterprise technical capabilities, quality qualifications, etc., and improve the accessibility and convenience of financing for small and micro enterprises.

6. Recently, the Ministry of Industry and Information Technology will jointly launch the third batch of regional equity markets' specialized, special, and new specialty board in strategic cooperation with BSE, further smoothing the capital market financing channels for specialized, special, and new small and medium-sized enterprises.

7. Introduce the implementation opinions to promote future industrial innovation development, vigorously develop humanoid robots, brain-computer interfaces, 6G, and other new fields and new tracks.

8. In the fourth quarter, the Ministry of Industry and Information Technology will work with relevant departments to introduce another batch of specific measures to promote consumption and expand domestic demand, assist enterprises in expanding markets, and unleash vitality.

9. The Ministry of Justice will promote the establishment and improvement of a system for economic impact assessments on enterprises by law enforcement agencies at all levels, to minimize the negative impact of administrative law enforcement activities on the normal production and operation of enterprises.

Introduce targeted assistance policies in areas such as taxation, social security, and financing.

Director Luo Wen of the State Administration for Market Regulation pointed out the need to accurately support the development of different business entities. Focus on solving the practical difficulties faced by small and micro-business entities in production and operation, continue to increase the precision assistance to individual industrial and commercial households. Promote the common development and coordinated development of platform enterprises and merchants within the platform, and promptly introduce specific measures to guide platform enterprises to play an active role in traffic and support the development of small, medium, and micro-business entities.

Luo Wen emphasized that he will guide platform companies to use traffic to help merchants within the platform enhance brand awareness and expand market transaction volume. The State Administration for Market Regulation will introduce the "Opinions on Guiding Online Trading Platforms to Play an Active Role in Traffic and Support the Development of Small, Medium and Micro Business Entities," encouraging online trading platform companies to reasonably allocate traffic resources, focusing on agricultural business entities, specialty business entities, and newly settled business entities.

At the same time, individual industrial and commercial households will be categorized and accurately assisted. The State Administration for Market Regulation will classify individual industrial and commercial households into three types of survival, growth, development, and four categories of excellent, special, outstanding, and new. Before the end of this year, a national unified classification "List of Individual Industrial and Commercial Households" will be established. On this basis, in cooperation with relevant departments, more targeted policies will be introduced in tax, social security, employment, financing and other areas to promote local governments to accurately assist individual industrial and commercial households in terms of site, cost, training, and recruitment.

In terms of creating a fair competitive market environment, Luo Wen explicitly stated to accelerate the revision process of the "Anti-Unfair Competition Law" to prevent and stop unfair competition. Ensuring the implementation of the "Regulations on Fair Competition Review," promoting the cleaning up of policy measures that hinder a unified market and fair competition, and further unleashing China's potential for a super-large-scale market.

In addition, to resolutely safeguard the legitimate rights and interests of business entities, accelerate the promulgation of the "Private Economy Promotion Law"; implement the "Regulations on Optimizing the Business Environment," and as soon as possible research and propose practical and effective measures to address issues such as hindering fair market access and restricting inter-district business migration.

Strengthening the combination of financing tools to achieve quality financing, with a credit line increase of 300 billion yuan annually.

Micro and small enterprises are an important force in stabilizing the economy, expanding employment, and improving people's livelihoods. Clearing the financing obstacles and bottlenecks for micro and small enterprises, optimizing the business environment, and smoothing financing channels, are the key points to continuing to guide financial institutions to increase financial support for the real economy.

Deputy Director of the China Banking and Insurance Regulatory Commission, Cong Lin, introduced that by the end of August this year, the RMB loan balance was 252.02 trillion yuan, an 8.5% increase year-on-year; insurance companies provided financing support of 28.8 trillion yuan through bonds, stocks, and other means. Structurally, loans for inclusive micro and small enterprises increased by 16.1% year-on-year, while loans to private enterprises increased by 9%.

In response to the difficulties and high costs of financing for micro and small enterprises, the China Banking and Insurance Regulatory Commission recently established a coordination mechanism to support financing for micro and small enterprises. Cong Lin pointed out that at the national level, strengthening the coordination of industrial policies, fiscal and tax policies, and financial policies will better form a policy coordination multiplier effect.

At the local level, provinces, cities, and counties should establish corresponding work mechanisms, refine plans according to local conditions, and ensure the implementation of various tasks locally. At the bank level, a special working group will be set up to mobilize internal resources, stimulate the initiative of grassroots institutions in lending, and proactively and timely meet the financing needs of small and micro enterprises.

Jungle emphasizes that as long as small and micro enterprises operate in compliance, have a fixed operating location, maintain good business conditions, have genuine financing needs, and use loans for legitimate purposes, they can obtain the necessary funds for development through this mechanism.

When it comes to 'achieving what goals', Jungle stated:

First, reach the grassroots level. Low-cost credit funds should reach the grassroots level to bridge the 'last mile' of benefiting enterprises and the people.

Second, be fast and convenient. Banks should make a credit decision within 1 month as a principle. For eligible enterprises, banks should establish a fast track, streamline processes, and expedite processing speeds.

Third, suitable interest rates. By reducing information collection costs, cutting intermediate links, reducing lending costs and additional fees, overall reduce the comprehensive financing costs for small and micro enterprises.

Market regulatory departments will also promote using quality and credibility as the basis for enterprise financing. Luo Wen stated that efforts will be made to incorporate elements such as enterprise quality capabilities, quality management, and quality brand credibility of enterprises into the credit approval and risk management models of financial institutions. Differentiated arrangements will be implemented in terms of credit limits, interest rates, financing terms, and repayment methods to enhance the accessibility and convenience of enterprise financing.

Luo Wen also stated that efforts will be made to promote the combination of financing tools such as equity, funds, and bonds, achieving an annual increase in credit limits for quality financing of 300 billion yuan and benefiting various types of enterprises comprehensively.

In the industrial sector, projects are expected to drive investment exceeding 11 trillion yuan over the next 3 years.

As the comprehensive management department responsible for promoting the work of small and medium-sized enterprises under the State Council, the Ministry of Industry and Information Technology continues to promote the gradient cultivation of high-quality small and medium-sized enterprises. Wang Jiangping, Vice Minister of the Ministry of Industry and Information Technology, introduced that China has emerged 0.141 million specialized, special, and new small and medium-sized enterprises, and 0.0146 million specialized, special, and new 'small giants' enterprises.

Wang Jiangping stated that the Ministry of Industry and Information Technology will focus on building mechanisms to promote the development and growth of specialized, special, and new small and medium-sized enterprises, improve the full cycle cultivation system of 'selection, cultivation, and optimization,' and promote the high-quality development of specialized, special, and new small and medium-sized enterprises.

Specifically, the Ministry of Industry and Information Technology, in conjunction with the Ministry of Finance, has launched a new round of support policies for specialized, special, and new enterprises. This year, more than 1,000 key 'small giant' enterprises will be supported by central government funds to create new momentum, tackle new technologies, develop new products, and enhance the matching capabilities of the industry chain.

In terms of digital transformation, a second batch of pilot cities for the digital transformation of small and medium-sized enterprises has been selected recently. The central government has allocated 2.7 billion yuan, with local governments investing over 12 billion yuan. Next year, the Ministry of Industry and Information Technology will select another batch of pilot cities, expecting to support a cumulative total of over 0.04 million small and medium-sized enterprises nationwide in digital transformation.

In terms of financial support, the Ministry of Industry and Information Technology, in collaboration with the China Securities Regulatory Commission, has launched the third batch of regional equity markets specializing in specialized, special, and new boards. It has signed a strategic cooperation agreement with BSE to further facilitate financing channels for specialized, special, and new small and medium-sized enterprises in the capital markets.

Furthermore, in response to some industrial enterprises reporting insufficient orders and other issues, Wang Jiangping stated that in the fourth quarter, the Ministry of Industry and Information Technology will work with relevant departments to introduce another batch of specific measures to stimulate consumption and expand domestic demand, assisting companies in expanding their markets and unleashing vitality.

Firstly, focusing on investment-driven initiatives, the Ministry of Industry and Information Technology is implementing technological upgrades and equipment renewal projects. It is expediting the approval and disbursement of long-term special national bonds to support projects, accelerating the disbursement of the 150 billion yuan already contracted for technical upgrade loans. Recently, a new batch of special refinancing projects has been recommended to banks, and advanced planning for the 2025 pilot cities for new types of manufacturing technology upgrades is underway. It is organizing industrial sector reserve projects to expedite construction commencement, aiming to generate more tangible workloads as soon as possible. Currently, there are approximately 36,000 industrial sector projects under construction or starting construction this year, and it is expected that they will drive investments exceeding 11 trillion yuan in the next 3 years.

Second, centering around expanding consumer base, organizing a series of actions to optimize supply, and promoting upgrades. Promote the replacement of old consumer goods with new ones, to drive the exchange of old electric bicycles for new ones; increase the promotion efforts of new energy autos. At the end of the year, a special event for new energy autos going to rural areas will continue, simultaneously promoting the rural presence of charging infrastructure, adding a group of pilot cities where public sector vehicles will be fully electrified.

Third, deepen the application of scenarios, cultivate and strengthen the new productive forces of the low-altitude economy, intelligent manufacturing, and others. Led by the construction of the low-altitude industry ecosystem, support advantage regions with good airspace resources and rich application scenarios to take the lead in trials, accelerate the cultivation of low-altitude logistics, urban and intercity air transportation, low-altitude cultural tourism, and other low-altitude consumer new formats, expand new models such as agricultural and forestry plant protection, inspection and patrol, emergency rescue, to create a new engine for economic growth. Introduce implementation opinions to drive future industrial innovation development, vigorously develop humanoid robots, brain-computer interfaces, 6G, and other new fields and tracks.

Editor / jayden