I.        The implementation of differentiated credit with guarantee and control

The support for high-tech enterprises, major technical equipment, basic industries, intelligent manufacturing, intelligent transformation, and rural revitalization will be increased. Enterprises that are competitive, marketable and productive, but temporarily difficult to operate in industries with overcapacity such as steel, nonferrous metals, building materials, shipbuilding, and coal, will be treated differently and continue to be given credit support. Besides, credit funds will be restricted strictly to flow into the real estate industry illegally through investment in speculative purchases or other methods.

II.     The implementation of classified credit support with targeted and accurate objects

The credit support for 100 key industrial enterprises, 100 growing industrial enterprises in Chongqing, as well as the “whitelist” of enterprises docking with banks in industrial financial will be strengthened. To avoid a “one-size-fits-all” type of recovering loans in advance, suspension of loans, granting of loans in delay, the reasonable quota of credit will be achieved by negotiation between banks and enterprises.

III. The implementation of unified action in joint credit

The pilot program of “joint credit” will be promoted actively and steadily. The credit quota of enterprises will be reasonably determined by means of joint credit information collection and summary, cross-validation of enterprise financing credit information. The creditor committee’s role of “joint credit and joint punishment” will be brought into full play with a unified pace and concerted action.

IV. Reasonable allocation of loan period

For some of the existing projects eligible for the conditions, medium-long-term loans can be granted instead of short-term loans to resolve the risk of short-term loans occupied by enterprises in the long term and of maturity mismatch. For loans to micro&small enterprises, the methods, such as non-repayment renewal loans, revolving loans, installment repayment of principals, and annual review loans, will be utilized comprehensively to reduce the burden on enterprises. To the large-medium-size enterprises that have temporary difficulties in capital turnover but still have solvency and market competitiveness, the debt pressure on enterprises will be eased by loan restructuring measures, such as adjusting loan term and repayment methods.

V.    Concentration of resources to increase credit investment

Large-medium-size commercial banks will be supported to establish “inclusive financial business divisions” and to improve their operation mechanism. Local legal person banks will also be supported to separate the quota of micro&small enterprise loans and implement preferential prices’ measures for internal capital transfer. Private enterprises and village banks will be guided to enrich their funding sources, so as to improve the efficiency of serving micro&small enterprises and the acquisition rate of credit.

VI. The innovation of logistics financial model

Banks will be asked to cooperate with the logistics financial platform to strengthen the docking with the core enterprise systems of the supply chain, carrying out loans of movable property pledge and accounts receivable pledge, and utilizing “full-process supervision + big data monitoring” of logistics finance to provide credit enhancement services for entity enterprise financing.

VII.     The support for financing in the whole process of trade

The implementation of international letter of credit settlement and financing services for land transport document delivery (such as rail-rail combined transport documents, road-rail combined transport documents, etc.) will be supported under the premise of guaranteeing the bank’s right to control cargo through the whole process of cargo monitoring and innovative railway bill of lading mechanisms. Various types of financing services under the letter of credit will be provided while exploring the multimodal bill of lading as the document for settlement of the letter of credit.

VIII. The improvement of fintech operation efficiency

Banks will be requested to facilitate the integration of finance and the internet, to improve the ability of risk identification and differential pricing by actively using information technology such as Internet, big data and cloud computing, to establish credit evaluation models that differ from traditional credit models. Furthermore, credit loan products operated online throughout the process will be promoted.

IX. The optimization of the enterprise’s asset-liability structure

Enterprises will be supported to eliminate invalid supply and gradually withdraw from production of products with excess capacity. Receivables financing services provided by commercial factoring companies will be used to accelerate the collection of operating funds from manufacturers, traders, and distributors. Furthermore, enterprises mismatching credit funds within the limited time will be supported to revitalize existing fixed assets, reduce the ineffective occupation of corporate funds, optimize the debt structure, and resolve credit risks.

X.    The promotion of merge and reorganization of enterprises

Dominant enterprises and key enterprises will actively be encouraged to carry out merge and reorganizations of “the combination among the strong enterprises” or “strong enterprises’ annexation of weak enterprises” to enhance effective supply. Moreover, resource integration, factor flow, extension of industrial chains, and expansion of business chains will be promoted by means of market-oriented mergers and acquisitions.

XI. The promotion of enterprises transformation and upgrading

Enterprises will be supported to improve their innovation capabilities and market competitiveness by cultivating core technologies, core crafts, and core capabilities. It will be ensured that the new credit funds are only used for the transformation and upgrading of enterprises, the increasing investment in technological reforms, and the construction of digital workshops and smart factories, so as to promote the transformation and upgrading development of the industry.

XII.     Enterprise’s ability improvement for dealing with extraneous risks

Enterprises will be supported to use import and export factoring, forfaiting business, import and export bills, agreement payment, agreement financing and other financing portfolio products to reduce exchange and interest rate risks in cross-border trade.

XIII. The full utilization of relending and rediscounting policies

The relending support for small enterprises and agriculture will be intensified, while the preferential policy of reducing the interest rate of loans supporting small enterprises by 0.5 percentage points will be implemented. Small-medium-size banks will be instructed to strengthen the standing book management of micro&small enterprise with a single-account credit of 5 million RMB and below, which can be granted relending support if they meet certain conditions. Bill rediscount will be given priority while increasing financing support for micro&small enterprise.

XIV. The support for debt financing of local legal person banks

Local legal person banks who do have the demands for returning assets of non-standardized claims to the balance will be supported to issue tier 2 capital bonds as supplementary capital. Local legal person banks will be encouraged to issue micro&small enterprise financial bonds, green financial bonds, and “agriculture, rural areas and farmers” financial bonds.

XV.    The rectification of unreasonable banks’ charge

Supervision of banks’ charge will be strengthened, the investigation and punishment of the unreasonable charges will be enhanced. The level of retained compensation charges due to cost limitation will be strictly controlled. No collection of micro&small enterprises’ commitment charges and fund management charges. Strict restrictions will be imposed on the collection of financial advisory charges and consulting charges.

XVI. The enhancement of bank supervision assessment

The evaluation of banks’ loans to micro&small enterprises will be intensified. The monitoring and evaluation of loan placement will be strengthened. The monitoring and evaluation of loan costs will be strengthened. The investigation on unreasonable loan collection of banks will be carried out. The regulatory tolerance of non-performing loans in the real economy such as micro&small enterprises, technology enterprises, and “agriculture, rural areas and farmers” etc., will be increased.

XVII.           The proper use of the fiscal and tax leverage policy

Banks’ loan discounts, subsidies, credit guarantees, risk compensation, and rewards which serving the real economy, will be supported by city, districts and counties’ financial funds increasingly.  The guarantee financing quota for micro&small enterprises will be no less than 80% by financing guarantee company supported by the National Financing Guarantee Fund. The single-account credit maximum quota of micro&small enterprises, individual industrial and commercial households which are eligible for loan interest income exemption from value-added taxation, will be raised from 1 million to 5 million, since September 1, 2018 to the end of 2020.

XVIII.        The intensification of name-list-management

The supply and demand of information sharing between banks and enterprises will be intensified among the 100 key industrial enterprises, 100 growing industrial enterprises in the city, and the “whitelist” of enterprises docking with banks in cooperation of finance and industry. Those key real economy enterprises that are under tight capital operations but have not yet established creditors’ committees and joint credit granting mechanism will be also included in the list of key monitoring enterprises.

XIX. The strengthened construction of credit system

The interconnection and integration of public credit information, financial credit information and market credit information will be promoted. A “blacklist” system for severely dishonest companies and an application mechanism for enterprises credit evaluation will be established, the joint incentives for being honest and joint punishment for being dishonest will be promoted to carry out.

XX.    The promotion of normalized docking

Every-quarter-docking-meeting among “government, bank, and enterprise” will be launched by relevant municipal departments, so as to promote the in-depth communication between banks and enterprises on details, such as credit policies, credit products, credit conditions, enterprise risk control, credit enhancement, and repayment plans, etc.