Recently, the People's Bank of China, the State Administration of Financial Supervision, and the China Securities Regulatory Commission jointly issued the Notice on Strengthening Financial Support Measures to Assist the Development and Growth of the Private Economy (hereinafter referred to as the "Notice"). The document proposes 25 measures from the aspects of continuously increasing credit resource investment and unblocking private enterprise bond financing channels. Not only are there frequent highlights, but also the terms of enhancing the financial carrying capacity of the private economy and reasonably meeting the financial needs of private real estate enterprises are full of profound implications. Increasing support for down loans and credit loans has gradually increased the proportion of loans to private enterprises. Financial support has always played an irreplaceable role in supporting the development of private enterprises. "However, compared to state-owned enterprises, private enterprises do not receive sufficient financial support. If substantial financial support can be increased, their business development will have more funds and greater confidence." Liao Qun, Director of the Economic Research Center of Hainan University and Senior Researcher of the Chongyang Institute of Finance at Renmin University of China, told reporters. This "Notice" proposes to clarify the goals and priorities of financial services for private enterprises "Increase financial support for private enterprises, gradually increase the proportion of private enterprise loans," and mention "increase support for down loans and credit loans.". In Liao Qun's view, this is also an important support point for promoting the development of private enterprises at present. Dong Ximiao, Chief Researcher of Zhaolian, believes that in order to solve the financing difficulties of private enterprises, the banking industry should play a leading role and continue to increase credit support while maintaining commercial sustainability. This notice clearly states that "increasing support for down loans and credit loans" also means that while connecting with the demand for private enterprises to renew loans, banks should actively solve the problem of "difficulty in down loans", increase the proportion of credit loans under controllable risks, and improve the effectiveness and accuracy of financial services. Smooth financing channels for private enterprises and expand the scale of high-quality private enterprise equity financing. Prior to this, some private enterprises encountered difficulties that were described as "three mountains": the iceberg of the market, the high mountain of financing, and the volcano of transformation. Among them, the "high mountain of financing" has always been of great concern. "For a long time, China's financial system dominated by indirect financing has insufficient support for private enterprises and innovative economy, which has to some extent led to a high macro leverage ratio. Therefore, it is necessary to continuously increase the proportion of direct financing in private enterprise financing, and make great efforts to deepen the construction of the bond market and promote capital market reform.". This notice mentions "financing" 34 times, aiming to provide precise solutions to the difficulties and high cost of financing for private enterprises. In terms of direct financing, the Notice proposes a package of measures, including expanding the scale of private enterprise bond financing, increasing investment in private enterprise bonds, supporting private enterprise listing financing and mergers and acquisitions, to deepen the construction of the bond market system and smooth the financing channels for private enterprise bonds, and better leverage the role of multi-level capital markets to expand the scale of high-quality private enterprise equity financing. In the view of Zhou Hongyi, founder of 360 Group, taking multiple measures to strengthen financial support, starting from the characteristics of private enterprise demand, and focusing on unblocking diversified financing channels such as credit, bonds, and equity, not only
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：economic daily
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