The epidemic will eventually pass, and the decline will pass, but this time is worth remembering!
Editor’s note: This article comes from WeChat public account “Suning WealthInsights” (ID: SuningWealthInsights), author Xue Hongyan, researchers Chen Jianing and Huang Dazhi.
The Spring Festival holiday is over, and the impact of the pneumonia epidemic on all walks of life has gradually emerged. Delayed construction was set aside, and isolation caused commercial inefficiency. For the moment, the onset of pneumonia first dragged down the large consumer industry: Consumers “circle” at home, consumer demand is reduced from “eat, live, play, play” to “eat” (still Eat at home). Affected by this, small and micro enterprises bear the brunt of it:
Some companies have experienced a decline in income, faced with cash flow, such as rent, interest, and wages, and faced the crisis of bankruptcy;
Some companies have begun to make prudent decisions, investment slowdowns, project delays, and self-help to cut costs;
Some companies have to enter the “hibernation” mode, and their business activities have been suspended.
In 2019, 57.8% of GDP growth will come from final consumption and 31.2% from investment. The sluggish consumption and slowing investment will have far-reaching effects. On the first day of the market opening on February 3, the Shanghai Composite Index plunged nearly 8 points, which was not all panic. . Fortunately, the support policy soon followed.
Central ministries and commissions quickly issue preferential policies
On February 1, the People’s Bank of China, the Ministry of Finance, the Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the Foreign Exchange Bureau jointly issued the “Notice on Further Strengthening Financial Support for the Prevention and Control of Pneumonia of New Coronavirus Infection”, covering five parts and more than 30 Measures.
In terms of supporting the real economy, it mainly includes credit support, capital market support, targeted support in areas affected by the epidemic, industries and enterprises. The relevant preferential measures are summarized as follows:
(1) Credit support
Keep flowingReasonable and abundant. Guide financial institutions to increase credit investment to support the real economy and promote the reasonable growth of money and credit.
Strengthening credit support in key areas such as manufacturing, small and micro enterprises, and private enterprises. Financial institutions strengthen service capacity building around internal resource allocation, incentive and assessment arrangements, increase support for small and micro enterprises, and private enterprises, maintain loan growth, and effectively implement comprehensive financing cost pressure reduction requirements. Increase the supply of medium and long-term loans for manufacturing.
Effectively protect the public credit-related rights and interests. For individuals and enterprises that have temporarily lost their source of income due to the epidemic, they can submit credit records according to the adjusted repayment arrangements.
Individual business guarantee loans infected with new pneumonia can be extended for one year, continue to enjoy financial discount interest support.
(2) Capital market support
Improve the efficiency of services such as bond issuance. Optimize the company’s credit bond issuance workflow, encourage financial institutions to submit online application materials for corporate credit bond issuance, remotely handle filing, registration, etc. to reduce the risk of epidemic transmission.
Flexibly and properly adjust regulatory matters such as corporate information disclosure. Affected by the epidemic situation, if it is difficult to disclose the 2019 annual report or the first quarter of 2020 quarterly report within the statutory period, or it is difficult to disclose the performance forecast or performance update on schedule, you can apply for an extension.
Appropriately relax the time limit for capital market related businesses. Appropriately extend the validity period of the financial information of the administrative license for the merger and reorganization of listed companies and the time limit for issuing notice of the convening of a shareholder meeting after the disclosure of the reorganization plan.
(3) Targeted support for areas, industries and enterprises affected by the epidemic
Providing differentiated financial services to regions, industries, and enterprises that are most affected by the epidemic. For industries and enterprises affected by the epidemic, blind drawdowns, interrupted loans, and pressure on loans shall not be allowed. If it is difficult to repay at maturity, it can be extended or renewed.
Support relevant enterprises to overcome the impact of epidemic disasters by appropriately reducing loan interest rates, increasing credit loans, and medium- and long-term loans. For financing guarantee re-guarantee institutions in areas affected by the epidemic, the national financing guarantee fund is halved.Take the re-guarantee fee.
Improve the efficiency of financial services during the epidemic. For the financing needs of areas and regions affected by the epidemic, financial institutions should establish and initiate rapid approval channels, simplify business processes, and effectively improve business processing efficiency.
Reduction of some expenses such as listing of companies in areas with severe immunity. In addition, the raised funds are mainly used for epidemic prevention and control, and financial bonds, asset-backed securities, and corporate credit bonds issued by financial institutions and enterprises in areas with severe epidemics to establish registration and issuance of “green channels” to reduce services Charge standards to further improve service efficiency.
Based on the joint issuance of the document, the Ministry of Finance also issued a separate notice, further stressing the need to increase financial subsidy support for the key protection enterprises for the epidemic prevention and control, and entrepreneurial guarantee loans affected by the epidemic, and optimize the impact. Business financing guarantee services. On February 3, the central bank took the initiative and the 1.2 trillion reverse repurchase arrived as promised, effectively providing liquidity protection for the market. This is just the beginning.
Follow-up measures by local governments
After the central level policies were issued, local governments in Suzhou, Shanghai, Beijing and other cities have successively introduced supporting measures.
On February 2, Suzhou issued the “Ten Policy Opinions on Supporting Small and Medium-Sized Enterprises to Cope with the Challenges of Pneumonia Epidemic of New Coronavirus Infection” (hereinafter referred to as “Su Hui Ten”); on February 3, Shanghai announced Four measures to reduce the burden on enterprises, Beijing issued “Several Measures on Further Supporting the Fight Against the Pneumonia Epidemic of New Coronavirus Infection” (hereinafter referred to as “Beijing Article 19”).
The first three shots were made in the three places. I believe that support policies will soon arrive. The following briefly summarizes the policies of the three places.
(1) Ten Su Hui
“Su Hui Ten Articles” was the first to be released, which not only won praise from business owners and netizens, but also received praise from the Ministry of Commerce. In detail, the policy has been deployed in detail from three aspects: “increasing financial support, stabilizing the workforce, and reducing the burden on enterprises.”
In terms of financial support, highlight “support”. Ensure that the credit balance of small and micro enterprises does not fall, financing costs are reduced, and the role of the national bank of policy banks is played. Policies to encourageAnd initiatives to ensure that the financial system is not exposed to major risks.
Stability is emphasized. Unemployment insurance rebate policy is implemented for insured companies that do not lay off workers or lay off fewer workers; for difficult companies affected by the epidemic, social insurance premiums are deferred as appropriate.
In lightening corporate burdens, highlight “reduction”. Reduction and exemption of rents and taxes for small and medium-sized enterprises, and effectively reduce the burden on small and medium-sized enterprises. Delayed payment of taxes is allowed to smooth the short-term impact of the epidemic. Finally, in the way of supporting SME entrepreneurship parks, support the development of SME clusters.
(2) Shanghai Four Articles
Shanghai’s four measures to reduce the burden on enterprises are not targeted at SMEs alone, and the audience is wider.
Like Suzhou, Shanghai has also made regulations on the postponement of social security and unemployment insurance returns. At the same time, Shanghai also announced the postponement of the adjustment of the social security contribution base, which is expected to reduce the social security contribution burden by 10.1 billion yuan.
In addition, it will also support enterprises to overcome difficulties in all aspects through fee reduction, deferred payment, and increased subsidies. If employees are organized to participate in various online vocational training during the suspension period, they can enjoy a 95% subsidy according to the actual training costs.
(3) Beijing 19 articles
Compared with Suzhou and Shanghai, Beijing’s support policies are more comprehensive and detailed, not only giving policies and funding, but also emphasizing government services and guarantee functions.
Specifically, the “Beijing Article 19” has made a comprehensive review from five aspects: “optimizing examination and approval, increasing funding support, doing good business services, giving play to the role of scientific and technological innovation, and strengthening the guarantee of urban operation and service.” deploy.
In terms of optimizing examination and approval services , for the production, procurement, import, fund transfer and foreign exchange processing of epidemic prevention and control materials, open green channels, supplemented by tax benefits policy.
In terms of increasing funding support With the help of the central bank’s special reloan, guide financial institutions to increase credit support for enterprises and individuals affected by the epidemic; establish a special fund pool to protect Epidemic prevention and control materials are in place, and special emphasis is placed on providing medical expenses protection for patients and medical staff diagnosed with pneumonia.
In terms of corporate services In addition to unemployment insurance return and deferred payment of social security, in the form of subsidies and discounts, companies that produce the materials needed for the epidemic are encouraged to improve quality and efficiency; guide shopping malls and market operators to reduce or exempt rents for small, medium and micro tenants, and effectively solve the business of small and medium-sized enterprises. problem.
At the same time, the Beijing Municipal Government also emphasized the role of scientific and technological innovation in supporting epidemic prevention and control. For the production enterprises of epidemic prevention drug research and development, technical research and epidemic prevention and control materials, emergency review and approval of green channels and tax incentives were granted. policy. It also proposes to encourage the fusion and sharing of government data and social data, interaction and interoperability, improve the “Beijing New Coronavirus Infected Pneumonia Online Doctor Consultation Platform”, and support the development of key technologies for medical artificial intelligence and product demonstration.
Finally, in terms of strengthening the guarantee of urban operation and service, the “Article 19 of Beijing” also makes detailed deployment regulations on the management of returnees, the guarantee of supply of daily necessities, and government services.
Conclusion and Prospects
Through a closer look at the various support policies, the timely and extensive coverage has been proactively implemented within the scope of the policy. But frankly, this set of policy combinations can improve the operating difficulties of small and micro enterprises, and they cannot be pulled out of the predicament.
The epidemic is for SMEs. The core impact comes from shrinking demand from the market side. Adding the epidemic situation to the decline in the efficiency of the industrial chain, raw materials procurement, logistics and transportation, production processing, market sales and other parties are hindered and transmitted layer by layer. And interlocking, weaving into a huge net, allowing enterprises to fall into it and struggle.
At this stage, various supporting policies focus on tax and fee reductions and financial support. They belong to “reducing expenditures” rather than “increasing income”, and naturally cannot solve the fundamental problem. However, the introduction of support policies in various places is not limited to support itself. It is more important to release a signal that The fight against the pneumonia epidemic is a matter for the whole society, and the losses caused by the epidemic directly affect enterprises, but the whole society In search of feasible ways to share losses.
In recent days, all parties have acted.
Effects on the front line of epidemic prevention: Anti-epidemic materials companies such as masks work overtime, medical staff are on holidays, donations and donations from all social organizations, green channels for anti-epidemic materials are opened, and the government declares surplus after the epidemic Output, insurance coverage donated by insurance companies, community “quarantine” epidemic prevention, postponed school / start,The media opened up a column on the epidemic …
Effects on corporate bail-outs: Targeted support of financial resources, reduction of clearing and settlement fees, central bank “water release” to the market, exchanges waived annual listing fees, and relaxation of financial reporting time limits; Return of unemployment insurance, increase of special subsidies, centralized tax reductions …
Protection for people’s livelihood: Supermarket vegetable markets are not closed, severe “disruption and wealth”, government reserve regulation market, continuous logistics and express delivery, continuous transportation, free cancellation and refund Travel & Work from Home …
Compared with 2003, China ’s economic strength, scientific and technological strength, material base, and resource allocation have been significantly enhanced. As long as the whole society “unites, supports each other, and shares losses,” no problem is a problem.
The epidemic will eventually pass, and the decline will pass, but this time is worth remembering!