On the evening of May 27, the Office of the Financial Stability Development Committee of the State Council issued 11 financial reform measures covering various fields such as capital markets, small and medium-sized banks, non-standard certification, credit ratings, and financial opening. What are the focus of these heavy reform measures? What signal was released?


What does “Reform 11” focus on? Where is new?

According to statistics, among the 11 reform measures, the first, fourth, fifth, sixth, seventh, tenth The measures mentioned in the article have previously entered the stage of soliciting opinions, or have been publicly mentioned.

For example, on March 6, the China Securities Regulatory Commission publicly solicited opinions on the “Guiding Opinions on the Transfer of Listed Companies in the National SME Share Transfer System”; April 9 , China Banking Regulatory Commission publicly solicited opinions on the “Measures for the Supervision and Evaluation of Financial Services of Small and Micro Enterprises in Commercial Banks”; at the beginning of May, the relevant departments have formulated the “Working Plan for Deepening Reform and Capital Supplement for Small and Medium-sized Banks”. >
“Policy Matrix” focuses on the pain points and difficulties of financing small and medium-sized enterprises

In the eyes of Lu Zheng, chief economist of Industrial Bank, these 11 measures Basically, they are all around small and micro enterprises. This time, the centralized release is more like a set of punches. The policies appear in the form of a matrix, which is intended to reiterate: Finance should focus on serving small and medium enterprises.

The first measure is related to the reform of commercial banks, which is the pain point of SME financing.

At present, 98.7% of the financing supply of small and medium-sized enterprises in China comes from bank loans, but compared with large enterprises, small and medium-sized enterprises have weak anti-risk capabilities, extensive management, and poor financial systems. With sound and weak market competitiveness, it is difficult to obtain loans from banks if they operate in a market-oriented manner. The “Measures for the Supervision and Evaluation of Financial Services of Small and Micro Enterprises in Commercial Banks” aims to give better play to the role of regulatory incentives and guidance, and further improve the quality and efficiency of small and micro enterprises in commercial banks. It is worth noting that the method proposes to assess the service of the first lenders of small and micro enterprises.

In addition to banks, it is also the government that needs to play a role, which is the difficulty of financing for SMEs. The “Guidelines for Performance Evaluation of Government Financing Guarantees and Reguarantee Institutions” was issued to better play the role of government financing guarantees and reguarantee institutions.

Most of the other reform measures are related to equity financing, which is the focus of SME financing. The Lu political commissar said that the original mention of corporate finance, most people will consider how to provide financing from the perspective of the money-saver Convenience and reduce financing costs, but in the capital market, we must also consider the protection of the interests of investors, so as to have confidence and stability in the market. Therefore, the “Opinions on Strengthening Administrative Penalties for Financial Illegal Acts” specifically mentions increasing The crackdown on behavior is equivalent to over penalty.


The Finance Committee meets 15 times in 4 months. This rhythm is not easy!

In addition, the Financial Stability Development Committee of the State Council, which issued 11 financial reform measures, also revealed some unusual signals. In the past six months, the frequency of meetings of the Finance Committee has increased dramatically.

On January 4, the Finance Committee held its first meeting this year, which was also the 14th meeting since the establishment of the Finance Committee in November 2017. And on May 4, the 28th meeting was held. In just 4 months, 15 meetings were held, which is equivalent to the total number of meetings in the first two years after the establishment of the Finance Committee.

The work pace of the Finance Committee is accelerating, and the focus is still on small, medium and micro enterprises. The 26th meeting on April 7 was deployed to guide credit to support the work of SMEs and private enterprises; the 27th meeting just a week later, again reiterated the implementation of policies to support the development of SMEs.

The reason behind the content of the 28th meeting of the Finance Committee explained: to speed up the work rhythm, strengthen the pertinence of the policy, in order to The policy certainty of “expansion of total amount, classification, renewal, and creation of tools” has hedged many uncertainties brought by the impact of the epidemic situation and economic downturn, and financial support for the real economy continues to increase.

The impact of the epidemic and the economic downturn have indeed brought great uncertainty to the operation of enterprises. The China Small and Medium Enterprise Association conducted a survey of 6422 enterprises, and the results showed that 86.46% of the enterprises were greatly affected by the epidemic.

Faced with this uncertainty, the focus on small and medium-sized enterprises has been running through various policy documents and meetings. The opinions on the reform of market-based allocation of factors announced in April clearly mentioned the need to increase the supply of financial services for small and micro enterprises and private enterprises. In the opinion on improving the economic system recently released, SMEs were emphasized four times, covering everything from financial support to development and systems.

Small, medium and small enterprises are an important force driving China ’s economic development. There are about 20 million small and micro enterprise legal persons in our country, accounting for more than 90% of the market legal persons. At the same time, SMEs, which account for 90% of the country ’s total enterprises, contributed 80% of employment, 70% of technological innovation, 60% of GDP and 50% of taxes. This means solving the problems of small, medium and micro enterprises, and solving the most important issues of people’s livelihood and employment in the “six stability” and “six guarantees”.

(Originally titled “Finance Commission Pushes 11 Heavy Measures, What Signals to Release”)