Jiangsu： financial living water helps transform and upgrade the strong chain.

Our province’s manufacturing loans have maintained double-digit growth for 18 consecutive months.
Financial living water helps the transformation and upgrading of strong chain and complementary chain

Recently, Nanjing Branch of the People’s Bank of China released the information about financial support for the real economy in the first quarter of 2022: By the end of March, the balance of local and foreign currency loans in Jiangsu’s manufacturing industry was 2.39 trillion yuan, an increase of 247.643 billion yuan over the beginning of the year, up 11.54% year-on-year. Among them, the balance of manufacturing loans increased by 18.7% in March. So far, our province’s manufacturing loans have maintained double-digit growth for 18 consecutive months.

The continuous rise of manufacturing loans is behind the constant adaptation between the flow rate of financial living water and the growth rate of manufacturing development. Especially in the context of the current epidemic situation in many places, the province’s financial industry focuses on industrial chain reinforcement and transformation and upgrading, constantly innovating products and services, tilting credit resources, and comprehensively improving the quality and level of high-quality development of financial service manufacturing.

Solve the problem of "supply chain finance" and "support" the strong industrial chain

Some time ago, Mr. Wang of Taizhou had mixed feelings. Happily, his company successfully got an order of 10 million yuan from a large downstream enterprise; Worryingly, due to the epidemic situation and rising raw material prices and other factors, enterprises are short of funds for the time being and cannot afford to pay for raw materials. Knowing this situation, Bank of Jiangsu Taizhou Branch immediately issued a 10 million yuan "e-financing bill" on the "supply chain financial cloud platform". With the "e-financing bill", Mr. Wang obtained online financing and solved the urgent need.

"e-finance" is a supply chain financial product. In view of the financial difficulties in the manufacturing industry’s strong chain replenishment, transformation and upgrading, supply chain finance has become the key content of current financial industry innovation. Its innovation lies in transmitting its credit to small and micro enterprises in the upstream and downstream of the industrial chain without affecting the use of funds by large and medium-sized enterprises to meet the financing needs of small and micro enterprises.

To enhance the core competitiveness of manufacturing industry, financial innovation cannot be slow. Focusing on the "Three-year Action Plan for" Strong Industrial Chain "in Jiangsu Province (2021-2023)", the province’s financial industry is tailored and deeply connected, and efforts are made to break through the "blocking points" and "difficulties" of services.

In the past two years, Jiangsu Agricultural Bank’s manufacturing loans have shown a rapid growth trend, with an average annual increase of 27%. "We give priority to guarantee manufacturing loans from the aspects of separate credit plans, further optimizing the mechanism, and reducing fees and profits to reduce costs." Zhang Jianliang, president of the bank, said that in response to the three-year action plan of "strengthening the industrial chain", 50 service plans for key industrial chains have been completed, with an additional credit of 28 billion yuan.

Grasping real investment and expanding effective investment in manufacturing projects are the "highlights" of financial institutions. Bank of China Jiangsu Branch has formulated 18 measures for financial services in advanced manufacturing fields such as integrated circuits and new energy. Since the beginning of this year, the bank has successively lent $210 million and $150 million to Likai Precision and SK Hynix respectively, and invested 520 million yuan in Trina Solar. Data show that as of the end of February, the bank’s manufacturing loans increased by 16 billion yuan compared with the beginning of the year.

On the one hand, financial institutions increase manufacturing loans from their own perspective; on the other hand, the regulatory authorities vigorously guide them through policies. A few days ago, Suqian Central Sub-branch of the People’s Bank of China issued the Implementation Plan of "Four Billion Plans for Financial Services to the Real Economy", proposing to implement the "Billion Manufacturing Loan Strong Chain Plan" and actively guiding banking institutions to increase manufacturing credit support.

Give timely assistance to small and micro enterprises, and strengthen financial assistance to enterprises to help them out.

In March this year, a batch of Covid-19 antigen detection reagent products were approved, and Jiangsu Nantong Xiaoyu Environmental Protection Technology Co., Ltd. provided jamming for two of them. However, even if the daily production capacity exceeds 2 million sets, it still cannot meet the demand, and enterprises urgently need funds to purchase automated production equipment to expand production capacity and reserve raw materials.

Upon learning of this situation, Nantong Central Sub-branch of the People’s Bank of China immediately reported the relevant information to China Bank. Bank of China quickly opened up a "green channel" for enterprises, appropriately increased credit granting and reduced costs, and completed the credit granting in only three working days. According to the new credit scheme, the original 6 million yuan secured loan was optimized and upgraded to the current 10 million yuan credit loan, and the annual comprehensive financing interest rate was reduced from 5.1% to 3.7%. Xia Keyong, the person in charge of the enterprise, calculated an account: "In this way, we can build seven new automated production lines, add 1 million sets of jams per day, and reduce interest expenses by 140,000 yuan per year. It’s really great!"

Small and micro enterprises are the new force of economic development and the "capillary" of manufacturing industry. Since the beginning of this year, many places in Jiangsu have promoted financial institutions to make profits to the real economy, increase loans to small and micro enterprises, give play to the complementary role of social forces and government forces, and increase liquidity support for enterprises. According to the data of Nanjing Branch of the People’s Bank of China, in March, the short-term loans of enterprises in the province increased by 113.3 billion yuan, 2.7 times that of the same period of last year.

The relevant person in charge of the Nanjing Branch of the People’s Bank of China told the reporter that since the beginning of this year, the two direct tools have been successively converted through market-oriented methods, the rediscount quota for refinancing has been increased, and financing for small and micro enterprises has been supported in a more sustainable way. At the end of March, the rediscount balance of the province’s refinancing increased by 20.7% year-on-year, while the service coverage of inclusive finance continued to expand steadily.

At present, the epidemic situation is stable, and financial assistance to enterprises is constantly expanding. A few days ago, the four departments of Jiangsu jointly issued 12 measures to strengthen financial assistance to enterprises from four aspects: credit supply, fee reduction and profit reduction, and work together to smooth the operation of enterprise funds and fully help enterprises tide over the difficulties.

Solve the problem of "stuck neck" and empower science and technology enterprises with financial precision.

Jiangsu Jinge Network Technology Co., Ltd., located in Lianyungang, successfully obtained a loan of 5 million yuan from Suzhou Bank by way of intellectual property pledge, relying on its six invention patents and some software copyrights. "Compared with the previous methods of fixed assets mortgage loans, intellectual property pledge financing is faster and more convenient, which is really tailor-made for our technology-based enterprises with light assets and heavy research and development." Chen Zonghua, general manager of the company, said.

From January to March this year, the amount of intellectual property pledge in the province doubled compared with the same period of last year, but it is still far from enough. From the perspective of the whole province, there are nearly 300 state-level "specialized and innovative" enterprises and nearly 1,400 provincial-level "specialized and innovative" enterprises. The huge demand has forced financial institutions to improve quality and efficiency and help solve the "stuck neck" problem of science and technology enterprises.

Established in 2014, an electronics company in Nanjing is mainly engaged in the research and development and sales of high-end sensor chips. Bank of Nanjing has been a cooperative bank of the company since 2016. "Considering the characteristics of light assets and high growth of enterprises, we match credit loans according to the sales situation of enterprises. From the initial loan of 500,000 yuan to the current loan of 20 million yuan, we always accompany them to grow up and match different financial service plans at different stages." A person from Bank of Nanjing said that at present, the company has grown into a "specialized and innovative" enterprise in Nanjing and "cultivated unicorns", and completed the D round of financing, sprinting towards the IPO road.

"We must do everything possible to break the information asymmetry between banks and enterprises, promote the development of intellectual property pledge loan business on a larger scale, and turn more’ knowledge’ into’ capital’." The relevant person in charge of Jiangsu Banking Insurance Regulatory Bureau said that, to this end, they joined forces with the Provincial Science and Technology Department to launch a nine-month special campaign of bank-enterprise financing docking for 72,300 small and medium-sized science and technology enterprises in the province from April. Among them, several key indicators have been set, that is, the loan balance, the number of households with loans, the first loan, medium and long-term loans, credit loans and intellectual property pledge financing, etc., should be significantly increased.

The heads of credit management department and inclusive finance department of Nantong Rural Commercial Bank have become the leaders of science and technology loan finance, and the heads of 32 credit branches within their jurisdiction have become the first responsible persons, making every effort to promote the financial services of science and technology loans. "We will establish a financial service platform for technology-based enterprises, improve the resource allocation mechanism, incentive and restraint mechanism and risk control mechanism, improve the service product system, service mode system and service function system, give play to the role of financial guidance, and promote technology-based small and medium-sized enterprises to become small technology giants and reserve forces for high-tech enterprises." The relevant person in charge of the bank said. (Reporter Cui Wei Zhao Weili)