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Jilin Province Finance Office interprets the Opinions on Highlighting the Development of the Private Economy
2013/03/11     Source:

“The Opinions on Highlighting the Development of the Private Economy introduced by the provincial party committee and government, particularly the important speeches by secretary Wang Rulin and governor Bayin Chaolu at the provincial meeting on highlighting the development of the private economy, have raised new requirements and made new deployments for the financial services for the private economic development, have adapted to the practical needs of highlighting the development of the private economy, and have responded to the urgent expectations of the main players of private economy.” Deputy inspector of the Financial Office of Jilin Province Liu Changyong interpreted the specific policies and practices of the financial system to support the development of the private economy.
Liu Changyong said the first thing for finance to serve the development of the private economy is to do everything possible to increase credit supply, in which, financial institution is the backbone and plays an irreplaceable important role. The financial institutions stationed in Jilin will further increase credit supply to the private economy. Our province will continue to ask the headquarters of various financial institutions to give preferences to Jilin Province in terms of credit scale and resource allocation, and fight for a higher and faster credit supply this year than last year. Private enterprise credit product innovation will become more prominent, allowing private enterprises to obtain loans with real estates, land use rights, effective securities and intangible assets as mortgage. Financial institutions will actively implement the financial policies of the country, implement differentiated assessment on the non-performing loan ratios of private enterprises, and appropriately to relax the tolerance of private enterprise non-performing loan ratio. The Office will further give play to the leverage of the province’ special fund for the development of the financial sector, guide financial institutions to lend to private enterprises, and give certain incentives to the local government whose loan balance is increased by 10% over the previous year.
The "Opinions" puts forwards supporting private enterprise to list and issue bonds. Governments at all levels should give funding subsidy to the newly listed companies and the enterprises which issue bonds. Give good play to the role of various types of investment funds, and especially make good use of small and medium-sized enterprise and private economy development funds established by governments, to support the development of the private economy. The e larger enterprises which make greater contribution to local places should be given with appropriate incentives by the governments at the same level.
Liu Changyong said the construction of multi-level capital market will provide more direct financing channels for the development of private enterprises. The province will further hold high the banner of capital market. First, continue to implement the "nurturing private enterprises for listing” and financing service project, include more qualified private enterprises in the scope of nurturing for listing, so that they can finance in the capital market through IPO and listed companies’ issuing, allotment and issuing convertible bonds. Second, continue to solidly promote the great development of equity funds. Establish the private enterprise equity investment guidance fund of Jilin Province, and promote the equity financing development of the private enterprises in our province, especially the enterprises in a high-growth stage and high-tech enterprises; encourage the participation of social capital in the equity investment fund, and support the qualified counties (cities, districts) to establish equity investment funds for private enterprises; equity investment funds will be integrated with listing of enterprises; regional equity market will accelerate development, to create a platform for equity trading of private enterprises and exit of equity investment funds. Third, further encourage private enterprises to finance through issuance of corporate bonds, medium-term notes, short-term financing bonds, and private placement bonds, etc. it will establish Jilin Province Private Enterprise Bond Credit Increase Company, which will increase credit of private enterprises by the market means, and improve the debt issuance ability of private enterprises. Fourth, further develop the OTC market. Continue to promote the “new three board” pilot park declared by Changchun City High-tech Zone and Jilin Hi-tech Zone; promote Changchun Property Right Trading Center and Northeast Securities Company to jointly build a regional equity market; and establish Financial Assets Exchange of Jilin Province.
The "Opinions" clearly points out the necessity to vigorously develop small loan companies and rural banks. According to Liu Changyong, since the small loan company pilot program was launched four years ago, the loan balance of small loan companies in the province has grown multiple times, and they have enhanced support to the real economy. The largest shareholder or the major initiator of small loan companies will be able to hold shares of up to 50% from the previous 20%, and those with registered capital of more than 500 million yuan are not restricted by this. This year, the province will strive to double the small loan companies, and continue to strengthen support of small micro-financial institutions to private enterprises. Establish the microfinance alliance, and broaden the financing channels of small loan companies. Encourage private capital to participate in restructuring the county-level credit cooperatives into rural commercial banks. Vigorously develop rural banks, private guarantee agencies, pawns, financial intermediaries and other small and micro financial institutions. Guide development zones, towns and villages, business districts, and chambers of commerce, etc., to develop mutually fund cooperation organizations.
“The mode of land-revenue guaranteed lending provides a new means of financing for solving private enterprises’ financing problems and supporting the development of private economy.” Liu Changyong told the reporter, in the next step, it will step up research on how to provide financing services for private economic organizations with prospective earnings from forest right, water right and pasture right, etc. as the guarantee, promote the mode of prospective-earnings guaranteed lending, and will support farmer cooperatives, agricultural leading enterprises and other private economic organizations to expand financing. At the same time, within the existing legal framework, step up research on the establishment of Jilin Province Property Financing Registration Trusteeship Trading Corporation, to effectively solve the financing obstacles for private enterprises.

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