Eight departments including the central bank: deepening cross-border trade and investment and financing facilitation measures and encouraging service industry operators to prioritize the use of RMB for pricing and settlement

The Zhitong Finance App learned that eight departments including the People's Bank of China jointly issued the “Guiding Opinions on Expanding Capacity and Improving the Quality of the Financial Support Service Industry”. The opinion mentioned the steady promotion of a high level of financial openness. Deepen measures to facilitate cross-border trade and investment and financing, and encourage service industry operators to prioritize the use of RMB for pricing and settlement. Promote the enhancement of financial institutions' domestic and foreign resource allocation capabilities and international competitiveness, optimize “integrated” services such as cross-border settlement, exchange rate hedging, cross-border financing, and external guarantees, support enterprises to “go global” and increase their participation and influence in the international market. Continue to improve and promote the application of multilateral central bank digital currency bridges and the “CBETS” (CBETS) integrated cross-border settlement service platform to provide efficient and low-cost cross-border capital settlement services for overseas service enterprises through multiple channels.

At the same time, support modern logistics to improve development energy levels. Financial institutions are encouraged to use appropriate products and tools to strengthen medium- and long-term financing support for key areas such as multimodal transport systems, “transit to rail” and “transit water”, oil and gas pipeline networks, national logistics hubs, national backbone cold chain logistics bases, urban and rural distribution networks, overseas distribution facilities, ocean tankers, and LNG carriers. Explore diversified financing service models, support the transformation of railway freight to railway logistics, vigorously develop international shipping and air transport services, and cultivate multimodal transport operators and integrated logistics service providers. Guide financial resources to support the upgrading of old logistics and warehousing, the construction and use of new energy clean energy transportation equipment, and the construction and operation of new energy clean energy supplementation facilities along transportation infrastructure routes. Improve the warehousing service capacity and wholesale market system layout of agricultural product production areas, and promote the rational layout of the commodity spot market.

The original text is as follows:

Eight departments including the People's Bank of China jointly issued the “Guiding Opinions on Expanding Capacity and Improving the Quality of the Financial Support Service Industry”

In order to implement the decisions and arrangements of the Party Central Committee and the State Council, promote the high-quality and efficient development of the service industry, further enhance the targeted effectiveness of policy support, and promote more investment of financial resources in key areas and weak links in the service industry, eight departments including the People's Bank of China, the Financial Supervisory Authority, the China Securities Regulatory Commission, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Commerce, and the Ministry of Culture and Tourism issued “Guiding Opinions on Supporting the Expansion and Quality Improvement of the Financial Services Industry” (hereinafter referred to as “Opinions”).

Guided by Xi Jinping's ideology of socialism with Chinese characteristics in the new era, the “Opinion” thoroughly implements the political and popular nature of financial work, refines the key directions and areas of financial support in accordance with the general requirements of the Party Central Committee and the State Council for “demand leadership, reform, technological empowerment, and open cooperation” in the service industry, and proposes 19 practical work measures in terms of enhancing the professional ability of financial institutions to support the service industry, increasing financial support for productive and lifestyle service industries, and strengthening and improving the financial services industry.

The “Opinion” points out that it is necessary to push financial institutions to transform the traditional asset-heavy and collateral-heavy financing support concept, focus on solving the financing problems of asset-light enterprises, enhance the targeted effectiveness of financial products in the service industry, continuously improve the financial service access rate of service industry operators such as small and medium-sized enterprises and individual businesses, accelerate the construction of a financial service system adapted to the high-quality development of the service industry, and provide strong financial support for the expansion and quality of the service industry.

The “Opinion” emphasizes the need to establish a multi-level organizational service system, increase financial support for the productive service industry, help improve the development level of technological services, modern logistics, business services, etc.; raise the level of financial services in the lifestyle service industry to promote high-quality development of accommodation and catering, residential services, nursing care, cultural and sports tourism; strengthen and improve the financial services industry, continue to improve payment, credit reporting and other services, and strengthen the protection of financial consumption and investment rights.

In the next step, the People's Bank of China will work with relevant departments to strengthen policy transmission, promote the speedy implementation of the various policies in the “Opinion”, strengthen the capacity building of financial institutions, and promote the expansion and quality of the service industry through high-quality financial development.

People's Bank of China Financial Supervisory Authority China Securities Regulatory Commission National Development and Reform Commission Ministry of Industry and Information Technology Ministry of Finance Ministry of Commerce Ministry of Culture and Tourism

Guiding Opinions on Expanding Capacity and Improving the Quality of the Financial Support Services Industry

In order to implement the decisions and arrangements of the Party Central Committee and the State Council, thoroughly implement actions to expand the capacity and quality of the service industry, strengthen financial support for the service industry, improve the quality and efficiency of the supply of financial products and services, and help the high-quality development of the service industry, the following opinions are put forward.

I. General Requirements

Adhere to Xi Jinping's ideology of socialism with Chinese characteristics in the new era, thoroughly implement the spirit of the 20th National Congress and the 20th Plenary Session of the Party, earnestly implement the decisions and arrangements of the Party Central Committee and the State Council to promote capacity expansion and quality improvement in the service industry, coordinate development and security, adhere to the principles of marketization and legalization, promote the transformation of traditional asset-heavy financing support concepts, and focus on solving the financing problems of asset-light enterprises, enhance the targeted effectiveness of financial products in the service industry, and continuously enhance the reach of financial service operators such as small and medium-sized enterprises and individual businesses up to Speed up the construction of a financial service system adapted to the high-quality development of the service industry, and provide strong financial support for expanding the capacity and improving the quality of the service industry.

II. Strengthening capacity building in the financial support services industry

(1) Establish a multi-level organizational service system. Financial institutions should identify key support areas for the service industry and form a differentiated financial services pattern based on their own strategic positioning and resource endowments. National banks should make full use of their capital scale and branch support advantages, and independently choose 3-5 key directions to strengthen financial supply around major national strategies and weak links in the service industry. Local legal banks should adhere to the local service position and focus on developing financial products adapted to regional characteristics around 1-2 industries according to the local service industry base and future development plans. Insurance institutions should develop and promote types of insurance such as business interruption insurance, cybersecurity insurance, public liability insurance, health insurance, and accident insurance to diversify the risks of service enterprises and workers. Non-bank financial institutions such as securities and funds should rely on professional operation capabilities to provide comprehensive direct financing and asset management services to service enterprises.

(2) Increase credit support for the service industry. Encourage financial institutions to focus on the capital needs of service industry operators and provide support for initial loans, credit loans, and medium- to long-term loans. Combine the operating characteristics of the productive service industry with the operating scenarios of the lifestyle service industry to innovate the supply of credit products and services. Improve pledge financing mechanisms such as intellectual property rights, determine pledge ratios reasonably, and enhance intangible asset pledge lending capabilities. Relying on financial credit service platforms to strengthen the collection and sharing of credit information for service enterprises, and improve the credit profile of micro, small and medium-sized enterprises. Increase credit convenience in the service industry, optimize loan approval processes, promote active credit granting and pay-as-you-go loan models to meet the flexible financing needs of business entities. Establish a risk assessment and differentiated pricing system covering the entire life cycle in response to the characteristics of the service industry such as small size and light assets. Standardize the development of credit products such as student loans and guaranteed loans for entrepreneurship, and improve the level of financial services for investors.

(3) Standardize the development of supply chain finance. Promote the improvement of supply chain bill business mechanisms and system functions, and steadily increase the promotion and application of unified registration and publicity systems for movable property financing, accounts receivable financing service platforms, and capital flow credit information platforms for micro, small and medium-sized enterprises. Financial institutions should standardize the development of supply chain finance on the premise of legal compliance and manageable risks. They can use “data credit” and “credit for goods” in the supply chain to provide supply chain financing services based on orders, warehouse receipts, waybills, and accounts receivable, and actively explore supply chain denuclearization models. Explore standardized cooperation with operators in lifestyle service industries such as restaurants and tourism, strengthen the verification of transaction background authenticity, make full use of information such as transaction flow, and expand scenario-based applications of supply chain finance.

(4) Broadening diversified financing channels. Support eligible service enterprises to issue bonds, and encourage the use of credit enhancement measures such as credit protection tools and bond financing support tools to enhance financing capabilities. On the premise of strictly adhering to the bottom line of risk, eligible financial institutions are encouraged to issue various types of financial bonds in accordance with regulations to expand financial supply in the service sector. Improve the financing system for early investment, small investment, long-term investment, and hard technology, give full play to the guiding and driving role of venture capital and industrial investment funds, and support the listing and financing, mergers, acquisitions and restructuring of eligible service enterprises. Develop and expand long-term capital and patient capital, and make long-term investments in the service sector. Make good use of asset securitization tools and tools such as infrastructure and commercial real estate investment trusts (REITs) to revitalize existing assets in service industries with stable cash flow such as modern logistics, cultural tourism and health care. Encourage service industry operators with means of transportation, machinery and equipment to provide customized financial leasing solutions, and develop financial leasing services for micro, small and medium-sized enterprises.

(5) Strengthen technological empowerment and risk prevention and control. Support financial institutions to deepen the development and utilization of data resources, explore innovative applications of cutting-edge science and technology such as artificial intelligence in the financial field, and enhance digital financial service capabilities. We provide “one-stop” digital and intelligent financial services around key areas of the service industry, key industrial chains, and key enterprises, etc., and accelerate the formation of application advantages of new technologies in the financial field. Comprehensive application of artificial intelligence, big data, Internet of Things and other technologies is used to construct risk control models adapted to the asset-light characteristics of the service industry to improve the level of due diligence, credit review and risk management of service industry operators. Strengthen the monitoring of the flow of credit funds to ensure that loan funds are used in enterprise production and operation. Strengthen asset quality monitoring and analysis, accurately classify loan risks, and truly and accurately reflect the quality of relevant credit assets.

III. Increase financial support for the productive services industry

(6) Helping to advance breakthroughs in scientific and technological services. Focusing on key areas such as R&D and design, intellectual property rights, transformation of scientific and technological achievements, inspection, testing and certification, we innovate and launch financial products that match asset-light and long-term characteristics. Build innovative service platforms such as technology-based enterprise incubators to adapt to rich and diverse financial markets and financial ecosystems. Support the development of technology trading markets, combine technical data trading scenarios, innovate financial products and financing service models, and help cultivate high-level technology transfer institutions and technology managers. Support mergers and acquisitions financing for core manufacturing enterprises, and integrate upstream and downstream technology service enterprises along the chain. Develop technology insurance, support enterprises to apply for product development liability insurance, and encourage insurance institutions to cooperate with pilot institutions to carry out related insurance business.

(7) Support modern logistics to improve development energy levels. Financial institutions are encouraged to use appropriate products and tools to strengthen medium- and long-term financing support for key areas such as multimodal transport systems, “transit to rail” and “transit water”, oil and gas pipeline networks, national logistics hubs, national backbone cold chain logistics bases, urban and rural distribution networks, overseas distribution facilities, ocean tankers, and LNG carriers. Explore diversified financing service models, support the transformation of railway freight to railway logistics, vigorously develop international shipping and air transport services, and cultivate multimodal transport operators and integrated logistics service providers. Guide financial resources to support the upgrading of old logistics and warehousing, the construction and use of new energy clean energy transportation equipment, and the construction and operation of new energy clean energy supplementation facilities along transportation infrastructure routes. Improve the warehousing service capacity and wholesale market system layout of agricultural product production areas, and promote the rational layout of the commodity spot market.

(8) Empower the innovation and development of software and information technology services. Guide financial institutions to comprehensively use diverse tools such as credit, bonds, and equity to support the development of “artificial intelligence+software”, promote innovative breakthroughs in intelligent programming tools and industrial software, basic software ecosystem and open source community construction, smart audiovisual system ecological scenario applications, etc., and develop new business formats such as intelligent as a service and model as a service. Improve financial security for digital transformation services in the manufacturing industry, and support the development of digital intelligence transformation service providers in the manufacturing industry. Actively meet financing needs in fields such as artificial intelligence technology research and development, construction of high-quality industry data sets, application scenario expansion, and industrial ecology cultivation. Encourage financial institutions to provide medium- to long-term financing for digital infrastructure construction such as information transmission, data and information technology, and strengthen financial support for the national computing power layout, edge computing power construction, and intelligent computing cloud service systems.

(9) Cultivate energy saving and environmental protection services to grow steadily. Enrich the green finance product spectrum and support the development of energy saving and carbon reduction fields such as energy efficiency diagnosis in key industries. Innovate financing models adapted to the development of a circular economy to support fields such as comprehensive utilization of industrial solid waste, recycling of renewable resources, remanufacturing services, and certification of recycled materials. Under the premise of legal compliance, financial institutions are encouraged to strengthen cooperation with service agencies such as carbon emission accounting, carbon emission reduction consulting, carbon asset management, etc., and steadily carry out environmental rights financing services such as carbon emission rights, water rights, and sewage rights. Optimize financial service models in environmental management fields such as green, high-yield and high-efficiency agricultural technology, agricultural waste treatment and utilization, and marine ecological restoration.

(10) Promote the upgrading of business services. Develop financial products that meet the characteristics of the business service industry to help the branding, chain and group development of service institutions such as business consulting, asset evaluation, accounting and audit. Reasonably meet the financing needs of leading exhibition companies, optimize financial services such as payment and settlement, and help build internationally renowned brand exhibitions. Focusing on improving the comprehensive overseas service system, further optimizing cross-border financial services, the rational and orderly cross-border layout of the service supply chain, supporting new business formats such as cross-border e-commerce and the development of service trade, digital trade, and green trade, expanding the “manufacturing+service” overseas business network, and supporting foreign-related legal, accounting, consulting, human resources, language service enterprises to expand the international market.

IV. Improving the level of financial services in the lifestyle services industry

(11) Promote more convenient accommodation, catering and residents' services. Optimize credit models around information such as turnover, orders, and rent of service operators in the catering, lodging, retail and other service industries, improve the convenience of using and repayment of funds, and meet the differentiated capital needs of business entities. Improve the availability of financing for community service scenarios, support the development of a one-quarter hour convenient living circle, provide financial support to improve the quality and efficiency of county commerce, and make up for shortcomings in retail supply. Encourage financial institutions to provide comprehensive financial services such as financing and financing for the digital transformation of service enterprises such as property, retail, and housekeeping, and support the development of new business formats such as home delivery.

(12) Raise the level of adaptation of old-age care and health services. Vigorously develop pension finance, support the expansion of the supply of inclusive, rural and community embedded old-age care services, and help cultivate consumption scenarios for integrated elderly service centers (elderly centers) and age-appropriate products. Encourage financial institutions to reasonably determine loan terms to match the construction and operation cycle of old-age care projects. Explore and promote pledged financing models such as the right to charge for pension beds, and strengthen financial support for rehabilitation, integrated medical care, and long-term care. Expand characteristic financial service scenarios, support retail pharmacies to expand professional services, health promotion and other functions, build “health posts”, promote R&D and testing of innovative drugs such as domestically produced medical devices, original drugs, generic drugs, etc., and help develop personalized family doctor contract services.

(13) Helping the integrated development of cultural tourism and sports industries. Encourage the development of diversified and immersive cultural and tourism formats, and do a good job in the construction of diversified service consumption scenarios and integrated consumption scenarios with multiple business formats, as well as financial support in fields such as cultural and tourism infrastructure construction, revitalization and utilization of industrial heritage, and construction of sports venue facilities around the masses to reasonably meet the financing needs of relevant business entities. Innovate and develop financial products suitable for the development of the yacht industry. Guide financial institutions to innovate service models around intangible assets such as brands, support the healthy and orderly development of entertainment, game animation, online literature, trendy culture and creativity, etc., and improve the quality and efficiency of financial services in the ticketing economy.

5. Strengthen and improve the financial services industry

(14) Continuously improve payment services. Improve a convenient, efficient, and risk-controllable payment service system covering urban and rural areas, and solidly promote inclusive payment. Financial institutions are encouraged to combine the operating characteristics of productive service industries such as technology research and development and business services, and continue to promote payment facilitation around lifestyle service scenarios such as lodging, catering, culture, sports and entertainment to meet the needs of diversified payment services. Deepen the intelligent and low-cost advantages of digital yuan smart contracts in the supervision of prepaid funds and issuance of consumer vouchers, and provide safe, efficient and convenient fund settlement solutions. Accelerate the construction of a diversified and multi-level RMB cross-border payment system and promote cross-border payment connectivity.

(15) Improve the credit reporting service system. Use the credit reporting service main channel function of the basic financial credit information database to help service industry operators with financial needs and development prospects obtain financing support. Optimize the layout of the credit reporting market, encourage credit reporting agencies to increase the collection of credit information from service industry operators, and develop credit reporting products and services targeting the characteristics of the service industry. Continuously improve the quality of credit ratings, give full play to the level of specialization of credit rating agencies, and gradually cultivate credit rating agencies with a global voice. Consolidate and expand the effectiveness of one-time credit repair policies, further unleash residents' consumption potential, and expand market demand in the service industry.

(16) Steadily promote a high level of financial openness. Deepen measures to facilitate cross-border trade and investment and financing, and encourage service industry operators to prioritize the use of RMB for pricing and settlement. Promote the enhancement of financial institutions' domestic and foreign resource allocation capabilities and international competitiveness, optimize “integrated” services such as cross-border settlement, exchange rate hedging, cross-border financing, and external guarantees, support enterprises to “go global” and increase their participation and influence in the international market. Continue to improve and promote the application of multilateral central bank digital currency bridges and the “CBETS” (CBETS) integrated cross-border settlement service platform to provide efficient and low-cost cross-border capital settlement services for overseas service enterprises through multiple channels.

(17) Strengthen the protection of financial consumption and investment rights. Deeply disseminate financial knowledge, promote financial aging transformation in an integrated manner, and prevent financial services gaps for the elderly in digital development. In response to new forms of modern services, strengthen consumer information security protection, clarify data collection and interaction boundaries, strictly prevent illegal acquisition of personal financial information, and rectify illegal acts that induce excessive borrowing and illegal high-interest loans. Strengthen full coverage of supervision and crack down on all kinds of financial illegal and criminal activities in accordance with the law. Clear complaint channels for financial consumers and investors, and improve diversified financial dispute resolution mechanisms.

6. Strengthen policy incentives and organizational guarantees

(18) Strengthen incentives for fiscal and financial collaboration. Make good use of policy tools such as service consumption and pension refinancing, optimize policies in a timely manner, encourage and guide financial institutions to increase the supply of consumer credit services, and do a good job of financial support in key areas of the service industry. Implement a package of policies to promote domestic demand through fiscal and financial coordination, such as loan interest rates for service industry operators, interest rates on loans for micro, small and medium-sized enterprises, and interest rates on personal consumption loans. Give full play to the role of government financing guarantees, determine the scope of financing guarantee business and guarantee rates in accordance with the principles of marketization and legalization, and support the financing development of operators in the service industry and other fields. Implement the first (set) insurance compensation policy. Continue to promote the clarification of comprehensive financing costs for enterprises and personal loans, and promote the operation of comprehensive financing costs for small and medium-sized service enterprises at a low level.

(19) Improve work promotion mechanisms. All departments advance by field according to the division of responsibilities, strengthen work coordination and information sharing, and strengthen policy transmission in the financial support service industry. All financial management departments should guide branches to work with local service industry authorities, industry associations, etc. to establish and improve a normalized work linkage mechanism, continuously update and improve the list of key service industries and enterprises, and strengthen service industry data, information sharing, and financing connections. Financial institutions should give full play to their initiative, implement detailed policies and measures, strictly adhere to marketization and the rule of law, and support the expansion and quality of the service industry. All provincial branches and financial institutions of the People's Bank of China should promptly summarize and report work experience, typical cases, and problem suggestions.

People's Bank of China

General Financial Supervisory Authority

China Securities Regulatory Commission

National Development and Reform Commission

Ministry of Industry and Information Technology

Treasury

Ministry of Commerce

Ministry of Culture and Tourism

This article was selected from the official website of the “People's Bank of China”, Zhitong Finance Editor: Liu Jiayin.