Recently, the State Financial Supervision and Administration Bureau, the Ministry of Industry and Information Technology, and the National Development and Reform Commission jointly issued the Circular on Deepening Financial Services for the Manufacturing Industry to Help Promote New Industrialisation.

The Central Financial Work Conference pointed out that more financial resources should be used to promote scientific and technological innovation and advanced manufacturing. On the basis of summing up the good experience of manufacturing financial services and connecting the recently issued policy documents, the three departments have further defined the key tasks of manufacturing financial services, guided banks and insurance institutions to put financial support for the high-quality development of the manufacturing industry in a more prominent position, continue to increase their support, optimise their service model, and better assist the construction of a strong manufacturing country and promote the new type of industrialisation.

Financial support for new industrialisation is the common choice of the times and the market. Bank of China Research Institute researcher Ye Huaibin said that, on the one hand, the new industrialisation is a Chinese-style modernisation to comprehensively promote the construction of a strong country, the national rejuvenation of the great cause of the key tasks, support for the new industrialisation of the financial institutions of the times mission; on the other hand, the new industrialisation-related clientele is the focus of financial institutions to serve the object of the support for the new industrialisation of financial institutions for the sustained and rapid development of the strong impetus provided by the new industrialisation.

The relevant person in charge of the Ministry of Industry and Information Technology said that we should firmly grasp the primary task of high-quality development, achieve the key task of new industrialisation, vigorously promote new industrialisation, lead industrial innovation with scientific and technological innovation, build a modern industrial system supported by advanced manufacturing, and focus on promoting the development of high-end manufacturing, intelligent and environment.

At present, high-tech manufacturing industry and emerging industries maintain rapid growth. Data show that in the first quarter, the value-added of high-tech manufacturing industry increased by 7.5% year-on-year, accelerated by 2.6 percentage points compared with the fourth quarter of last year; the typical products of emerging industries maintain a high growth rate, solar cells increased by 20.1%, and photovoltaic-related polycrystalline silicon, monocrystalline silicon growth rate of up to 50% or more, and new energy automobile production and sales increased by 28.2% and 31.8% year-on-year, respectively.

Financial support for industrial intelligence, environment development is one of the highlights of the Notice, but also a new round of scientific and technological revolution and industrial change is an important direction. The Notice proposes to vigorously promote the development of green finance to support carbon emission reduction, environment transformation, resource saving and efficient recycling and the construction of environment energy system in the industrial sector.

In recent years, the environment of China's manufacturing industry has achieved positive results. For example, in terms of product structure, environment supply capacity continues to increase. The proportion of advanced manufacturing continues to rise, and the supply of environment equipment and products has been further enhanced. In terms of environment manufacturing, the role of benchmarking and leading has continued to emerge. At present, at the national level, a total of 5,095 environment factories, 371 environment industrial parks, 605 environment supply chain management enterprises have been cultivated, and more than 500 environment manufacturing specialised service institutions have been cultivated.

Experts said that banking financial institutions should make good use of carbon emission reduction support tools and other policies to increase medium- and long-term financial support for industrial environment transformation. Dong Ximiao, chief researcher of Zhaolian, said that to promote better financial support and service to the manufacturing industry, the most important thing is to focus on solving the key problems restricting the development of the manufacturing industry, so as to fundamentally achieve high-quality development of the manufacturing industry. In addition, it is also necessary to accelerate the elimination of backward production capacity, accelerate the exit of ‘zombie enterprises’, accelerate the restructuring of enterprises in difficulty, and cultivate the formation of a number of high-quality green manufacturing enterprises.

As of the end of March, the year-on-year growth rates of high-tech manufacturing loans, technology-based small and medium-sized enterprise (SME) loans, and inclusive small and micro-enterprise loans were 27.3 per cent, 20.4 per cent and 20.3 per cent respectively. Continuous improvement and enhancement of support and services to the manufacturing industry has become the next focus of financial institutions. Dong Ximiao said that from the financial system, it is necessary to vigorously develop the capital market and increase the proportion of direct financing. Improve the stock issuance and refinancing system, improve the ability of enterprises to raise funds in the capital market. Priority should be given to supporting qualified manufacturing SMEs to go public and list on the Science and Innovation Board, the North Stock Exchange, the Growth Enterprise Market, and the New Third Board. From the direction of support services, it is necessary to highlight the key points and increase the support services for the manufacturing industry, mainly to strengthen the financial support for the advanced manufacturing industry, high-tech manufacturing industry and strategic emerging industries.

A good job of risk prevention and control, and create a good financial market order, is the key to steadily improve the quality and effectiveness of financial services for the manufacturing industry. The Notice makes it clear that banks and insurance institutions should establish the concept of prudent management, and strengthen the construction of internal control and compliance and comprehensive risk management. Ye Huaibin said that commercial banks should improve the sensitivity of risk monitoring, strengthen the pre-audit, monitoring and post-evaluation. According to the financial institution's own situation, improve the risk disposal capacity. Improve the internal risk prevention, early warning, disposal and accountability system of financial institutions to avoid the spread of financial risk cases in the system and promote the high-quality development of financial services manufacturing.

Source: Economic Daily