Notice of the General Office of Shanghai Municipal People’s Government on Transmitting the Implementation Opinions on Enhancing the Financial Services and Supports to Technology-based Small and Medium Enterprises of This Municipality Made by Eight Departments Including the Municipal Office of Finance Service
(November 27, 2009)
SMPG GO G [2009] No. 52
Attention: all District and County People’s Governments, and all relevant Commissions, Offices and Bureaus (Administrations) of the Municipal People’s Government:
The Implementation Opinions on Enhancing the Financial Services and Supports to Technology-based Small and Medium Enterprises of This Municipality made by the municipal office of finance service, the municipal science and technology commission, the municipal finance bureau, the municipal administration of local taxation, the People’s Bank of China, Shanghai Branch, the Shanghai Office of China Banking Regulatory Commission, the Shanghai Bureau of China Securities Regulatory Commission, and the Shanghai Bureau of China Insurance Regulatory Commission, have been approved by the Municipal People’s Government. We hereby transmit them to you, and request you to implement them conscientiously.
Implementation Opinions on Enhancing the Financial Services and Supports to Technology-based Small and Medium Enterprises of This Municipality
With a view to carrying out the policies and measures of the State to ease the financing problems of the technology-based small and medium enterprises and implementing the Guiding Opinions on Further Enhancing the Credit Support to Technology-based Small and Medium Enterprises (BRG [2009] No.37), enhancing the integration of science and technology resources and financial resources, promoting the development of science and technology industry of this Municipality, we hereby put forward the following implementation opinions on enhancing the financial services and supports to technology-based small and medium enterprises of this Municipality:
I. Focusing on major industry fields and science & technology parks, enhancing the financial supports to technology-based small and medium enterprises. Banks are encouraged to enhance the financial supports to technology-based small and medium enterprises, especially to the nine major fields of high- and new-tech industrialization development, defined by the “Implementation Opinions on Accelerating Development of High- and New-tech Industrialization in Shanghai” (SMPG G [2009] No.26) of the Municipal People’s Government, and the financial supports to technology-based small and medium enterprises of such nine fields as new energy resources, civil aviation industry, advanced significant equipment, biological medicine, electronic information manufacturing, new energy automobiles, ocean engineering equipment, new materials, software and information service industry shall be enhanced. Banks are supported to establish branches in those state-level, or municipal-level major high- and new-tech development parks and science-based parks including Zhangjiang Hi-tech Park, Cao Hejing Hi-tech Park, Zizhu Science-based Industrial Park and Yangpu Intellectual Innovation Park, to provide those technology-based small and medium enterprises with such banking services as credit loans and financing, cash flow management, financial consultation, etc.
II. Innovating the management mode, and accelerating the construction of financing system for technology-based small and medium enterprises. Effective approaches and management modes of stronger financial supports to technology-based small and medium enterprises shall be explored, and the bank branches of credit loans for technology-based small and medium enterprises may be cultivated and the divisions or centers for those enterprises may be established so as to develop financial service products suitable for their needs; “six mechanisms” of financial services shall be established and perfected for them to meet their development requirements in the aspects of loan review, loan use and repayment. The power and authority in approving loans shall be down passed; the systems of credit risk evaluation, due diligence liability exemption and appraisal and award shall be established to suit the features of technology-based small and medium enterprises; the risk tolerance of the non-performing loans of the technology-based small and medium enterprises shall be properly raised and the mode of financial services shall be continuously innovated. Differential supervision on the banks that carry out financing services to technology-based small and medium enterprises shall be adopted to encourage banks to enhance services to technology-based small and medium enterprises.
III. Perfecting policies and measures, and creating good environment for the credit development to technology-based small and medium enterprises. The subsidized interest loan, financial aids for projects, etc. in science and technology scheme (special project) shall be used to lower the financing cost of the technology-based small and medium enterprises, and share their loan risks. The confidence of banks in loan business with the technology-based small and medium-size enterprises shall be raised, and the financial institutions of banking industry shall be encouraged to enhance the loans to the technology-based small and medium enterprises. The pre-tax deduction policy of loan loss reserves of financial institutions for small and medium enterprises formulated by the Ministry of Finance and the State Taxation Administration shall be carried out, and the loan loss reserves shall be calculated and deducted by different rates upon completion of the banks’ classification of loan risks for technology-based small and medium enterprises when the amount of taxable income calculated. The taxation department shall, in accordance with relevant provisions on pre-tax deduction of enterprise’s assets loss formulated by the State Taxation Administration, fully use those legal evidences issued by judicial departments, economic arbitration organs, or other authorized agencies, provide efficient and convenient services of examination and approval when identifying the asset losses of loans granted to technology-based small and medium enterprises, so as to raise the write–offs efficiency of bad loans.
IV. Perfecting the guarantee system, and establishing the risk share mechanism for loans granted to technology-based small and medium enterprises. The functions of policy guarantee institutions, commercial guarantee institutions, and re-guarantee institutions shall be brought into full play, and the financing guarantee system for technology-based enterprises shall be gradually improved. The guarantee institutions of all kinds are encouraged to serve the technology-based small and medium enterprises. The science and technology parks of state level or municipal level are encouraged to establish guarantee institutions or guarantee funds to serve the technology-based enterprises, and further improve the guarantee ability through supplementary capital, guarantee subsidy, and risk compensation. Under the premises of controllable risks, all banks may raise the guarantee amplification rate of the guarantee institutions or guarantee funds for the technology-based enterprise within the framework of national regulations. Shanghai Re-assurance Corporation shall provide re-guarantee services to the technology-based small and medium enterprises in the field of guarantee, so as to promote the establishment of loan risk-share mechanism for technology-based small and medium enterprises.
V. Establishing expert tank，and providing professional consulting services to technology-based small and medium enterprises. The municipal-level science and technology experts tank shall be established to provide professional consulting services on technological financing to banks and technology-based enterprises, and raise the ancillary support of credit service to technology-based small and medium enterprises. Banks shall be encouraged and guided to establish the advisory committee of science and technology experts. Science and technology experts with the voting right shall be enrolled to the loan review committee, and corresponding appraisal and restraint mechanism shall be established. Relevant departments of the municipal, district/county people’s government shall, through position exchange or temporary post, recommend qualified science and technology experts to leading positions in the related banks in accordance with needs, and coordinate in exploiting local science and technology resources.
VI. Carrying out the pilot innovation, and improving the financing ability of technology-based small and medium enterprises. The strategic cooperation among science and technology parks, technology-based small and medium enterprises, banks, equity investment organs, venture capital organs shall be pushed forward with great efforts, and the “co-action of investment and financing” or “co-action of financing and investment ” shall be carried out in a trial way, so as to establish the new capital chain supply service mode. The unified service platform for the transfer, mortgage, and pledge of intellectual property right shall be established and perfected to develop the financing business of intellectual property pledge right. Commercial banks may, in accordance with the guidance of the banking regulatory commission on project financing business, grant loans against mortgage or pledge on the project prospective earnings , or equity of the sponsor’s project company that meet the mortgage or pledge requirements. The pilot insurance of science and technology credit loan shall be actively carried out. The exploration of financing of insurance credit policy shall be expedited.
VII. Supporting direct financing, and broadening the financing channels for technology-based small and medium enterprises. Such venture capitals as equity investment, venture capital investment shall be guided to put into technology-based small and medium enterprises to broaden the financial channels for enterprises. A normalized good environment shall be created for the development of equity investment, venture capital investment in this Municipality, and the advantages of market and projects in this Municipality shall be brought into full play, so as to establish a transaction platform and investment resources for equity investment enterprises.
The construction of multi-level capital market system shall be actively pushed forward, and the exit mechanism for venture capitals shall be fulfilled. Enterprises that meet the requirements shall be guided and supported to carry out direct financing on small and medium enterprises board, growth enterprises board, etc. at different industrial development stages of the specific technology-based small and medium enterprises; the scope of pilot agency share transfer system shall be actively promoted in Zhangjiang New and Hi-tech Industry Development Area, so as to realize agency shares transfer and quote transfer for those non-listed incorporations in the park; the establishment of regional share transfer market for those non-listed incorporations, with the transaction targets at technology –based small and medium sized enterprises, shall be explored under the guidance of the state administrative department of finance,
VIII. Establishing the working mechanism, and building up the platform of financial services and development support for technology-based small and medium enterprises. The municipal office of finance service, the municipal science and technology commission, the People’s Bank of China, Shanghai Branch, the Shanghai Office of China Banking Regulatory Commission, the Shanghai Bureau of China Securities Regulatory Commission, the Shanghai Bureau of China Insurance Regulatory Commission, the municipal finance bureau, and the municipal administration of local taxation shall establish the combined working mechanism to provide financial services to technology-based small and medium enterprises, study the new issues, new problems incurred in the financial services to technology-based small and medium enterprise in a timely manner, formulate and adjust related policies and measures, enhance the appraisal and evaluation on relevant financial institutions and relevant departments, and further do well in the financial services, so as to support the healthy development of the technology-based small and medium enterprises.
Shanghai Municipal Office of Finance Service
Shanghai Municipal Science and Technology Commission
Shanghai Municipal Finance Bureau
Shanghai Municipal Administration of Local Taxation
People’s Bank of China, Shanghai Branch
China Banking Regulatory Commission, Shanghai Office
China Securities Regulatory Commission, Shanghai Bureau
China Insurance Regulatory Commission Shanghai Bureau
November 16, 2009