In 2023, RMB loans to the real economy will increase by 22.22 trillion yuan—— 

The financial sector provides strong and effective support for the development of the real economy

Data released by the People's Bank of China recently showed that the annual increase of social financing in 2023 will be 35.59 trillion yuan, 3.41 trillion yuan more than the previous year. Among them, RMB loans issued to the real economy increased by 22.22 trillion yuan, an increase of 1.18 trillion yuan year-on-year. Experts said that last year, China's monetary policy increased counter-cyclical adjustment, coordinated use of aggregate and structure, quantity and price tools, more strongly supported the development of the real economy.

We will guide more funds to flow to private small and micro enterprises

To support the development of the real economy, private small and micro enterprises are one of the priorities. In 2023, the People's Bank of China and other departments guided more funds to private small and micro enterprises and other weak links, and achieved obvious results

We will expand financing channels for private and small and micro businesses. The extension and expansion of bond financing support tools for private enterprises provided credit enhancement support for 243.8 billion yuan of bonds issued by 140 private enterprises. Commercial banks will be encouraged to issue special financial bonds for small and micro enterprises, with a total of 263.7 billion yuan issued in 2023.

We will enhance the financial services capabilities of micro, small and medium-sized enterprises. We will carry out in-depth projects to improve the financial service capabilities of micro, small and medium-sized enterprises, and guide financial institutions to improve policies and arrangements such as internal capital transfer pricing, due diligence exemption, and performance appraisal. At present, the internal fund transfer pricing concessions of small and micro businesses of national commercial banks are not less than 50 basis points, and the weight of inclusive finance in the comprehensive performance assessment of branches is not less than 10%.

We will increase import and export credit support for small, medium and micro foreign trade enterprises. Banks and insurance institutions are encouraged to expand cooperation in insurance policy financing and credit increase, and large state-owned financial institutions are encouraged to increase resource tilt, and relevant parties continue to strengthen support for financing and credit increase of small, medium-sized and micro foreign trade enterprises, meeting the foreign trade financing needs of small, medium-sized and micro enterprises.

Wen Bin, chief economist of China Minsheng Bank, analyzed to reporters that since last year, various regions and departments have continued to promote the high-quality development of inclusive finance, and private small and micro is an important strength point. In this context, inclusive small and micro loans have maintained a high growth rate, and the coverage, availability and satisfaction of financial services have improved significantly.

We will improve the rural financial service system

Supporting all-round rural revitalization is another priority. According to the relevant person in charge of the People's Bank of China, in 2023, the People's Bank of China will lead the issuance of documents, focusing on nine aspects such as doing a good job in ensuring the stable production and supply of food and important agricultural products, strengthening and consolidating financial support for the achievements of poverty alleviation, and guiding more financial resources to be allocated to key areas and weak links of comprehensive rural revitalization. By the end of November 2023, the balance of agriculture-related loans in the country was 56.22 trillion yuan, an increase of 15.1% year-on-year.

In order to broaden financing channels for agriculture-related enterprises, the People's Bank of China has set up green channels for enterprises to issue bills for the comprehensive revitalization of rural areas to support financing for agriculture-related enterprises. By the end of November 2023, 156 enterprises in 28 provinces (autonomous regions and municipalities directly under the Central Government) have been supported in issuing 252 issues of rural bills, with an issue amount of 198,257 billion yuan. At the same time, we will make good use of special financial bonds for agriculture, rural areas, farmers, and small and micro businesses to expand the sources of loanable funds for financial institutions. By the end of December 2023, a total of 148.15 billion yuan of special financial bonds for agriculture, rural areas and farmers had been issued.

Local governments are also taking active measures. Qin Gang, director of the Anhui Supervision Bureau of the State Financial Supervision Administration, introduced on January 11 that Anhui established a one-to-one "guarantee" service pairing mechanism for major banking institutions in the county, strengthening support for rural living environment, infrastructure and other fields, and as of the end of November 2023, the balance of agriculture-related loans increased by 20% compared with the beginning of the year.

Wen Bin believes that the current level of financial services in the field of "agriculture, rural areas" is improving, but it is also facing some problems and challenges, and should further optimize the service supply, continue to carry out agricultural credit products and model innovation, strengthen the rural circulation network construction financing and settlement services, and improve the rural financial service system.

We will vigorously support scientific and technological innovation and advanced manufacturing

In 2023, the People's Bank of China will vigorously support scientific and technological innovation and advanced manufacturing, strengthen bond financing guidance for science and technology enterprises, open up green channels for bond issuance, and support the expansion of the issuance of scientific and innovation bills. From January to November 2023, a total of 360 billion yuan of Kech bills have been issued, twice the amount issued in 2022.

In addition, the person in charge said that we should actively play the role of incentive and guidance for scientific and technological innovation re-lending and strengthen credit support for scientific and technological enterprises. As of the end of October 2023, loans to "specialized and special new" enterprises, technology-based smes, and high-tech enterprises increased by 17.7%, 22.1% and 15.7%, respectively, significantly higher than the growth rate of loans in the same period. The outstanding medium - and long-term loans to the manufacturing industry reached 12.2 trillion yuan, maintaining a relatively high growth rate of about 30% for three consecutive years.

Since the beginning of this year, new policy measures have continued to be introduced. On January 12, the State Administration of Financial Supervision issued the Notice on Strengthening Financial Services for the whole Life Cycle of Science and Technology Enterprises, encouraging more credit loans for early-stage science and technology enterprises on the basis of risk prevention and control, and striving to improve the "first loan rate" of science and technology enterprises. We will optimize financial services for growing technology-based enterprises, expand the scope of collateral guarantees, and standardize and develop supply chain finance.

The People's Bank of China has made it clear that in 2024, it will focus on the "five major articles" to support key areas and weak links, implement the action plan to increase support for financing of science and technology enterprises, continue to implement carbon emission reduction support tools, and continue to play the role of supporting agricultural and small loans, rediscounting, and inclusive small and micro loans support tools in serving the long-term mechanism of inclusive finance. We will do a good job in implementing the 25 financial measures to support the private economy, continue to do a good job in comprehensively revitalizing financial services in rural areas, and continue to implement special reloans for inclusive elderly care.

Source: Chinese government website