Surat Investment：Better finance for emerging segments

Financial institutions in China are expected to step up efforts for

enriching quality financial services for the manufacturing sector,

especially strategic emerging segments, to facilitate industrial upgrade

and the advancement of new industrialization, experts said on

Wednesday.

Their comments came after the country unveiled on Tuesday a circular

calling for stronger and better financial support for the manufacturing

sector, with 17 items detailing requirements for enhancing supply of

financial services, improving the services systems and strengthening

risk prevention among others.

Jointly published by the National Financial Regulatory

Administration, the Ministry of Industry and Information Technology and

the National Development and Reform Commission, the circular said the

country will focus on key tasks to strengthen financial support for the

manufacturing sector.

Those key tasks include supporting industrial and supply chain safetySurat Investment

and stability, promoting sci-tech innovations for industrial

development, facilitating industrial upgrade and optimization of

industrial structure, and promoting the intelligent and green

development of industries.

Zhou Maohua, a researcher at China Everbright Bank, said that China

has been continuously deepening the supply-side structural reforms in

the financial sector.

"Financial institutions have been encouraged to provide solid support

to the manufacturing sector and key emerging segments such as

scientific and technological innovation, and green economy," Zhou said.

"The implementation of the circular will further motivate financial

institutions to strengthen their willingness and enhance their services

to allocate more resources to the high-end manufacturing sector, thereby

significantly adding to the industrial chain resilience in the

manufacturing sector and supporting sci-tech innovations, to eventually

accelerate new industrialization and development of new quality

productive forces."Agra Stock

The circular asked banks to allocate more credit resources to support

the development of the manufacturing sector, and continuously increase

the proportion of medium- and long-term loans in overall loans extended

to the sector. They should also strengthen the utilization of credit

information in the sector, increase credit and reduce reliance on

collateral, it said.

In addition, it asked banks and insurers to strengthen medium- andSimla Stock

long-term financial support for the upgrade of equipment and

technologies in traditional manufacturing sectors, as well as enhance

the role of the national industry-financing cooperation platforms, to

promote the efficient matching of financial resources with the financing

needs related to industrial upgrade.

It also urged financial institutions to facilitate the cultivation

and expansion of strategic emerging industries. With a focus on key

industries like information technology, artificial intelligence, the

internet of things, biotechnology, new materials, high-end equipment and

aerospace, the circular asked them to strengthen financial support and

risk prevention, and expand the scale of credit extended to strategic

emerging industries.

Insurance funds should work on the premise of keeping risks

controllable and, from a commercial perspective, be willing to provide

long-term stable financial support to strategic emerging industries.

Such support could be in the form of bond purchases, direct equity

investment, private equity funds, venture capital funds and insurance

asset management products, it said.

Zhou said he expects financial institutions to further improve their

customer service efficiency by optimizing the processes of services

access, approval and post-loan management.

In performance appraisals, financial institutions should give more

consideration to businesses in the manufacturing sector and

innovation-oriented sci-tech enterprises, said Zhou.

Li Peijia, a senior analyst at Bank of China, said the country should

help financial institutions further enhance their ability to evaluate

risks and value of innovation-oriented sci-tech enterprises by promoting

information-sharing within the sector.

Pune Wealth Management