China News Service, April 7 (China News Finance Reporter Wu Jiaju) On April 7, the People's Bank of China established a re-loan for scientific and technological innovation and technological transformation with a quota of 500 billion yuan, which attracted attention. Industry insiders told Sino-Singapore Finance that this measure is a powerful measure for the People's Bank of China to adjust and optimize structural monetary policy tools and guide financial institutions to increase support services for major strategies, key areas and weak links.
According to news from the official website of the People's Bank of China on April 7, the People's Bank of China has established technological innovation and technological transformation re-loans to encourage and guide financial institutions to increase financial support for technology-based small and medium-sized enterprises, technological transformation and equipment update projects in key areas.
The re-loan quota for scientific and technological innovation and technological transformation is 500 billion yuan, with an interest rate of 1.75%, a term of 1 year, and can be extended twice, with each extension period of 1 year. The recipients include 21 financial institutions including China Development Bank, policy banks, state-owned commercial banks, Postal Savings Bank of China, and joint-stock commercial banks.
The People's Bank of China stated that the re-loan for technological innovation and technological transformation is a continuation of the original re-loan for technological innovation and special re-loan for equipment renovation.
In April 2022, the People's Bank of China created the Scientific and Technological Innovation Re-loan to guide financial institutions to increase their support for scientific and technological innovation. The scientific and technological innovation re-loan quota is 200 billion yuan, with an interest rate of 1.75%, a term of 1 year, and can be extended twice.
In September 2022, the People's Bank of China established a special refinancing facility for equipment upgrading and transformation to support equipment upgrading and transformation in manufacturing and other fields. The special re-loan amount for equipment renewal and renovation is more than 200 billion yuan, with an interest rate of 1.75%, a period of 1 year, and can be extended twice, with each extension period of 1 year.
Dong Ximiao, chief researcher of China Merchants Union, said that the People's Bank of China has established technological innovation and technological transformation re-loans on the basis of integrating the original re-loans for technological innovation and special re-loans for equipment renewal. This is a powerful measure for the People's Bank of China to adjust and optimize structural monetary policy tools and guide financial institutions to increase support services for major strategies, key areas and weak links.
He said that the re-loan interest rate for technological innovation and technological transformation is 1.75%, which provides financial institutions with stable funds at a lower cost and helps guide financial institutions to increase support services for technological innovation and technology-based enterprises and do a better job. Big articles on science and technology finance can mobilize more social capital to invest in scientific and technological innovation. At the same time, it will also help support financial institutions in implementing the State Council’s deployment and help promote a new round of large-scale equipment updates.
According to the People's Bank of China, financial institutions make independent decisions on whether to grant loans and the conditions for granting loans based on enterprise applications, referring to the list of alternative enterprises and projects provided by industry authorities, and in accordance with the principle of self-bearing risks. Financial institutions apply to the People's Bank of China for re-loans, and the People's Bank of China reviews the loan ledgers. For loans that meet the requirements in the list of alternative enterprises or projects, re-loans will be issued to financial institutions at 60% of the loan principal.
In Dong Ximiao's view, refinancing for technological innovation and technological transformation follows the direct mechanism of "loan first, borrow later" and organically combines market-oriented principles with policy support. This will further improve the ability of financial institutions to support technological innovation while preventing risks. and enthusiasm for large-scale equipment updates.
Dong Ximiao also said that small and medium-sized banks such as city commercial banks, private banks and rural commercial banks were not included in this re-loan grant. It is recommended that the re-loan policy should be optimized in the next step, and high-quality small and medium-sized banks should be targeted for disbursement, so as to better support small and medium-sized banks to give full play to the characteristics of flexible systems and mechanisms, do a good job in science and technology finance, and remain more stable in serving technology-based small and medium-sized enterprises. development of.
At the same time, he said that due to the long cycle of technological innovation and high uncertainty, it is recommended to appropriately extend the period of re-loans for technological innovation and technological transformation, or increase the number of extensions to better match the actual needs of technological finance development.
Looking forward to the follow-up, Wen Bin, chief economist of Minsheng Bank, predicts that the People's Bank of China will focus on strengthening support for the "five major articles" and "three major projects" such as technology, green, inclusive, pension, and digital finance to promote The transformation of economic development momentum has promoted the development of new productive forces, and actively cooperated with the resolution of real estate risks and the debt reduction of local governments, adhering to the principle of "building up and breaking down". (over)