Focus on the Two Sessions | Exclusive Interview with Shen Guojun by China Business Times: Establishing a New Mechanism for Private Enterprises to Increase Credit Release Time: March 5, 2021 Reading Times: 4232

Editor's note: During the Two Sessions. The China Business Times recently interviewed Shen Guojun, a member of the National Committee of the Chinese People's Political Consultative Conference and founder and chairman of Intime Group, and published a report titled "Shen Guojun: Establishing a New Mechanism for Private Enterprise Credit Enhancement". The following is the full text of the report.

Shen Guojun, a member of the National Committee of the Chinese People's Political Consultative Conference and founder and chairman of Intime Group, stated in an interview with our reporter that in response to the problem of financing difficulties faced by private enterprises in the post epidemic revitalization, a proposal titled "On Improving the Accuracy of Financing Policies and Enhancing the Sense of Gain for Private Enterprises" has been submitted.

“ Private enterprises find it difficult to obtain medium - and long-term financing, and 'short-term loans and long-term investments' are common. During periods of economic downturn, operational risks increase. ”Shen Guojun stated that the financing difficulties faced by private enterprises are mainly manifested in the difficulty of obtaining bank loans, especially medium and long-term loans, and even encountering situations such as blind loan pressure, reduced credit, and loan to deposit conversion by banks. More than half of the private enterprises believe that the reason for the difficulty and high cost of financing is due to the reduction of financing channels, and the problem of difficult financing for enterprises is more prominent than the problem of expensive financing.

Shen Guojun suggested precise measures to improve the efficiency of financial supply. Specifically, it is necessary to rely on multiple categories such as industrial chains, supply chains, technology innovation boards, commercial districts, and customer groups to develop characteristic financial products such as light assets and credit. He also stated that it is necessary to expand the precise docking mode between banks and enterprises, combine industry, commercial districts, and regional characteristics, and organize bank enterprise docking online and offline in various ways to effectively expand the financial supply to private enterprises. In addition, he believes that we need to continue to increase innovation efforts, rely on technologies such as big data and cloud computing, improve risk control models and business processes, and improve the financing efficiency of small and medium-sized enterprises through more accurate analysis and discrimination of financing needs.

He suggested exploring the establishment of a new mechanism to enhance the credibility of private enterprises, developing bond financing support tools for private enterprises, and using market-oriented methods to enhance credibility and support private enterprise financing. In addition, we will provide more medium - and long-term loans and credit loans to high-quality enterprises with a market, prospects, and competitive technology, offer preferential interest rates, and actively support eligible private enterprises to expand direct financing.

He also suggested that through diversified policy combinations, financial institutions should be guided to establish a long-term mechanism of "daring to lend, willing to lend, able to lend, and able to lend". Specifically, it is necessary to establish differentiated regulatory incentive policies and guidance measures, guide financial institutions to link performance evaluation with supporting the development of the private economy, and increase the assessment weight of credit business for private enterprises. At the same time, accelerate the establishment and improvement of due diligence exemption measures and standards for financial institutions to serve private enterprises, and differentiate the tolerance for non-performing loans to small and micro enterprises.