Small And Medium Enterprises Financing Ice Fade Away

Statistics show that by the end of 2006, SMEs registered by the business sector had reached about 4300000 households.

The final product and service value, total export and tax paid by small and medium-sized enterprises account for 58.5%, 68.3% and 50.2% of the national total respectively, forming the half of the Chinese economy. The invention patents of small and medium-sized enterprises account for 66% of the whole country, and the R & D of new products account for 82% of the whole country. It has become a new force for China to build an innovative country. Small and medium-sized enterprises have provided employment opportunities of over 75% of the urban employment population and absorbed more than 75% of the rural labor force pferred from the countryside, which has become the main channel for solving the problem of urban and rural employment in China.

This was learned in the first China SME Festival recently.

Ou Xinqian, deputy director of the national development and Reform Commission, pointed out that in recent years, China's small and medium-sized enterprises and non-public sectors of the economy have maintained a good momentum of development, playing a more and more important role in boosting the economy, increasing employment, promoting innovation and expedited industries, and have become an important force in promoting the development of social productive forces and promoting the building of a harmonious socialist society.

Ou Xin Qian said that the role of SMEs is mainly reflected in five aspects: first, the contribution to economic growth is increasing; GDP, tax revenue and import and export volume account for more than 50% of the country's total.

The two is to become the main channel to expand employment and solve more than 75% jobs.

The three is to gradually become a new force in technological innovation.

The four is to promote the adjustment and optimization of industrial structure.

Five, it is playing an increasingly important role in developing the market and promoting foreign cooperation.

With the rapid development of small and medium-sized enterprises and non-public sectors, the policy environment of SMEs has been constantly optimized, and the social atmosphere of promoting the healthy development of SMEs has been formed.

The relevant departments and units of the central government have promulgated 33 supporting documents on the promotion law of small and medium enterprises and the State Council's opinions on encouraging the support and guidance of the private sector and other non-public sectors of the economy. Central and local governments have abolished and revised more than 6000 rules and documents that are inconsistent with the spirit of the 36 non-public sector.

By the end of 2006, 3366 credit guarantee institutions had been set up nationwide, with a total guarantee of 805 billion 100 million yuan.

As a highlight of the first China SME Festival, the "2007 project and capital docking meeting" has attracted the attention of business circles and banking and financial circles at home and abroad. More than 200 enterprises and more than 60 Chinese and foreign banking and financial institutions have participated in the joint meeting of capital and capital.

Li Zibin, President of the China Association of small and medium enterprises, said that the difficulty of financing is the biggest problem for Chinese SMEs. The China SME Association will work hard to solve this problem for small and medium-sized enterprises. Later this form of capital and capital docking will go on for a long time, so as to build a long-term financing platform for small and medium-sized enterprises and financial institutions.

On the eve of the first small and medium enterprises Festival, the 12 departments of the national development and Reform Commission and the Ministry of Finance jointly issued some policies on supporting technological innovation in small and medium-sized enterprises.

The policy said: we will fully support and promote the listing of qualified SMEs in the SME board, vigorously promote the innovation of the SME board system, speed up the listing process of small and medium-sized enterprises of science and technology, and independent intellectual property rights, and set up the growth enterprise market when conditions are ripe.

The policy put forward that we should speed up the development of small and medium enterprises investment companies and venture capital enterprises, encourage the establishment of venture capital guidance funds, establish and improve venture capital mechanism, guide social capital to venture capital enterprises, support the establishment and development of small and medium-sized investment companies, increase policy support and risk compensation for investment companies of small and medium-sized enterprises, encourage them to expand their investment businesses, and support technological innovation activities of small and medium-sized enterprises.

In fact, in order to alleviate the financing difficulties of SMEs, relevant departments are trying to increase financial support for SMEs through various innovative means. In November 21, 2007, the Shenzhen Shenzhen government and the National Development Bank Co operated the "small and medium enterprises bond of 2007".

This is the first domestic small and medium enterprises to collect bonds. It is also the largest number of issuers in the history of domestic corporate bonds.

Ju Jinwen, a researcher at the Institute of economics of the Chinese Academy of Social Sciences, said that encouraging bundled bonds is a useful exploration to solve the financing difficulties of SMEs. It is also feasible in the long run, but this road is not easy to walk.

It is not easy for small enterprises to reach the standard of binding and issuing bonds. At present, our country can reach the limited number of small and medium-sized enterprises at this level.

Therefore, the support of financial funds and bank loans are still very important for alleviating the financing difficulties of SMEs.

People have noticed that the situation that banks have always been criticized for being "poor and rich" and ignoring the financing needs of small and medium-sized enterprises have changed greatly.

As the largest commercial bank in China, ICBC has made active explorations in improving the financing difficulties of small and medium enterprises in recent years. Niu Ximing, vice president of ICBC, revealed during the SME Festival: as at the end of 9 last year, the balance of loans of SMEs was more than 1 trillion and 200 billion yuan, and the balance of small business loans had reached 206 billion yuan.

Niu Ximing said: in 2005, ICBC, as one of the two small business credit pilot companies selected nationwide by the CBRC, took the lead in pilot small business credit reform. In recent years, the increment of SME loans has always been in the forefront of the industry.

Since 2005, ICBC has extended loans to SMEs by 2 trillion and 580 billion yuan, of which 585 billion 700 million yuan has been issued to small businesses.

Niu Ximing introduced that in recent years, ICBC has continuously enriched the types of financing products for SMEs to facilitate customers to use and reduce the cost of enterprises, while satisfying the diversified financing needs of SMEs.

By the end of 9 2007, ICBC had 44 thousand and 500 small business customers with financing balance.

At present, ICBC provides settlement services for more than 2 million small and medium-sized enterprises in China.

In recent years, ICBC's SMEs have maintained a rapid growth in the settlement of public accounts.

On the basis of doing a good job in traditional settlement services and meeting customers' daily settlement needs, we vigorously develop new settlement products, and use industrial and commercial bank cash management products to make up nearly 50 thousand small and medium-sized enterprises, thus promoting their own financial management level.

According to sources from authoritative departments, in recent years, domestic commercial banks have actively developed innovative services and products for the needs of SMEs, exploring and providing risk management and wealth management services for SMEs.

It is understood that at present, ICBC, people's livelihood, China Merchants Bank and other commercial banks are acting as agents for the insurance of small and medium-sized enterprises, and property insurance has developed rapidly. The development and agents have issued a variety of financial products to meet the needs of small and medium-sized enterprises, and also provide a variety of financial derivatives to help customers lock costs and avoid risks.