I. To enhance the policy guidance of monetary credit

Financial institutions will be encouraged to increase the credit supply for private enterprises and micro&small enterprises, and to properly utilize the new relending and rediscount quotas. Private enterprises will enjoy stronger support of bill financing. The “green counter” handling bill discount will be established to improve the efficiency of discount financing. Besides, the task of deepening the pilot program of joint credit will be accelerated, which suggests to expand the scope of pilot program for private enterprises with due process, and to reasonably determine the credit quota of enterprises.

II. To increase the support of direct financing

A joint conference mechanism to promote the listing of private enterprises will be established, thus coordinately facilitating the qualified private enterprises in Chongqing to be listed. The opportunity of development offered by the launch of Sci-Tech innovation board (also known as the “STAR Market”) in China will be seized, in order to promote a batch of private enterprises with core competitiveness to be listed on Sci-Tech innovation board. Those private micro&small enterprises of high quality will be supported to go public on National Equities Exchange and Quotations (NEEQ). Also, private enterprises will be motivated to go public on both domestic and overseas stock exchanges. Meanwhile, those non-listed private enterprises will be encouraged to issue convertible bonds in a private placement and asset-backed securities in accordance with laws and regulations. Those qualified private enterprises will obtain active assistance to win over the support of nation-level industry funds.

III. To improve the ability of financial institutions to serve the real economy

Local legal person banks will be supported to issue non-fixed-term capital bonds, tier 2 capital bonds of debt-to-equity kind and other innovative tools to replenish capital, hence increasing the capital adequacy ratio of banks. Credit enhancement companies in the financial market will be established to provide credit enhancing service for insurance asset management products, bond financing of private enterprises, stock pledge financing, etc. Besides, banks will be guided and supported to expedite the disposal of non-performing loans (NPLs), while ensuring the investment of bailout funds towards private enterprises.

IV. To complete the construction of information service platform

The functions of the municipal government affairs information sharing platform will be enriched and improved, for further promoting the "Chongqing Express Finance" (a big data platform serving the enterprises in Chongqing for financing). A database of the financing entities in private and micro&small enterprises will be established to integrate enterprise-related information in terms of finance, taxation, market supervision, social security, customs, judiciary, etc., hereby achieving to share with financial institutions. Moreover, the reward and punishment mechanism for credit will be improved. Depending on the National Enterprise Credit Information Publicity System (Chongqing), the collection and disclosure of enterprise-related information and trans-departmental joint rewards and punishment will be advanced in accordance with the law.

V. To perfect the local credit enhancement system with constant efforts

The connection and communication with National Financing Guarantee Fund will be strengthened. The financing guarantee company sponsored by National Financing Guarantee Fund shall offer no less than 80% of the guarantee financing quota for micro&small enterprises, and shall assume 20% of the risk responsibility of the resulting compensation loss. Meanwhile, the policy of fiscal subsidies will be implemented, via encouraging and guiding guarantee institutions to offer low-rate guarantees for small and medium-sized enterprises with a guarantee rate of no more than 2% and without any additional and unreasonable fees.

VI. To promote the orderly development of various equity financing

The early-staged investment forces such as angel investment, venture capital etc. which investing the private Sci-Tech innovation enterprises will be cultivated. The private equity investment system will be improved to provide financing support for those enterprises at a seed-stage start-up. The orderly development of regional equity markets will be accelerated to promote the formation of diversified and multi-layered equity financing markets.

VII. To establish a long-term mechanism making financial institutions become “bold to lend, willing to lend and able to lend”

Financial institutions will be promoted to implement the policy of exempting loan interest income from value-added tax and deducting loan loss reserve before income tax for micro&small enterprises and individual businesses with a single-account credit of 10 million RMB and below. Besides, the acceptable ratio of non-performing loans in assessment will be increased. In this regard, the acceptable ratio of non-performing loans in the inclusive loans for micro&small enterprises will be raised from 2% to 3%, which is no higher than the non-performing loan ratio of various loans.

VIII. To raise the financing availability of private enterprises

Discriminatory requirements should not be imposed on private enterprises in the process of loan approval, and the interest rates and terms of credit for private enterprises will be the same as that for state-owned enterprises under equal conditions. Rules and regulations will be introduced to guidesmall-sum loan companies in adjusting their lending behavior, thus promoting small-sum loan companies to reduce their interest rates and to regulate their lending behavior. The constant promotion of "Smart County + Inclusive Finance" project will be encouraged. The development and policy banks will be supported to reduce the financing cost of micro&small enterprises through on-lending.

IX. To reduce the excessive reliance on mortgage guarantees

The supply chain finance will be actively supported, while the trade finance products and service mode will embrace innovations. Financial institutions and international trade supervision department will be encouraged to build an information sharing mechanism. The business of mortgage and pledge like intellectual property rights, inventories, receivable accounts, receivable instruments, export rebates etc. will be conducted. Besides, the financing by virtue of related instruments for exporters in the trade covered by export credit insurance and the financing by virtue of pledging receivable accounts of refunding export tax will be more available.

X. To boost the efficiency of loan approval and disbursement

The application of such information technology as big data, cloud computing, artificial intelligence and block chain will be encouraged to furnish online loan channels, hence enhancing the efficiency of loan approval. The combination of such methods as non-repayment renewal loans, revolving loans, installment of principals and annual review loans shall be utilized to reduce the loan turnover cost. Moreover, the ways of advanced credit, parallel operations, simplified annual review and so on will be promoted. If centralized approval is necessary, the time limit of internal work will be specified so as to improve the efficiency.

    XI. To strengthen the sustainability of financial services for private enterprises

The credit risk control mechanism will be consolidated to continuously enhance the capacity of data governance, customer rating and credit risk pricing, while strengthening the penetrating risk management throughout the whole life cycle of loans.

XII. To assist risky enterprises getting out of trouble

The docking among “government, bank and enterprise” will be strengthened by establishing a mechanism of regular consultative meetings. With the collaboration of district and county governments as well as social capital, the amount of emergency turnover fund for micro, small and medium-sized enterprises to transfer loans will be raised up to 20 billion RMB. Meanwhile, the bailout funds of private enterprises in Chongqing will be brought into full play. If more than three banking financial institutions invest in the same one private enterprises with individual investment over 50 million RMB, each one of them will be promoted to establish a creditor committee respectively.

XIII. To check up the payment in arrears to private enterprises effectively

The standing book recording the settlement details, which clarifies the time limit and route map of the settlement will be set up by every district and county governments, the settlement will be fully completed with time and quality guaranteed. The municipal key state-owned enterprises will participate in the credit system of receivable accounts financing, strengthen the management of running accounts, and avoid to squeeze the funds of private enterprises. Commercial banks will provide financing support to local platform companies in accordance with laws and regulations, and will make reasonable and lawful solutions to the problem of arrears.

XIV. To guide private enterprises to operate in accordance with laws and regulations

Private enterprises will reinforce the financial discipline of their own, focus on accelerating the development of the main business, arrange the structure of financing scientifically, and standardize the management of related transactions, thus realizing a dynamic balance among operation, financing and capital cash flow. Furthermore, private enterprises will strengthen the regular connection and communication with financial institutions, without any attempt to escape from the financial debts.

XV. To intensify the supervision and safeguard of the policy implementation

The supervision and evaluation of implementing the policy of financial services for private enterprise will be organized, for timely summarizing of successful cases and effective practices that can be copied and popularized. Those who failed to fulfill the above tasks will be held serious liability in accordance with law and regulations to ensure the complete implementation of various policies.