· Document Number：No. 66 [2015] of the People's Government of Guangdong Province

· Area of Law： Foreign Economy and Trade

· Level of Authority： Local Regulatory Documents

· Date issued：07-03-2015

· Effective Date：07-03-2015

· Status： Effective

· Issuing Authority： People's Government of Guangdong Province

Several Opinions of the People's Government of Guangdong Province on Innovating on and Improving the Investment and Financing Mechanism of Micro, Small and Medium-Sized Enterprises
(No. 66 [2015] of the People's Government of Guangdong Province)
All municipal people's governments at and above the prefecture level; the people's governments of all counties (cities and districts); and all departments of and all bodies directly under the provincial people's government:
Micro, small and medium-sized enterprises are important integral part of the national economy, and promoting their sound development is an important measure to stabilize growth, promote reform, adjust structure, benefit the people, and prevent risks. For the purposes of implementing in depth the decisions and arrangements of the State Council on supporting the development of micro, small and medium-sized enterprises, innovating on and improving the investment and financing mechanism of micro, small and medium-sized enterprises, and practically ease the problem of difficult and costly financing confronting them, the following opinions are hereby offered:
I. Establishing a provincial micro, small and medium-sized enterprise credit information and financing connection platform. According to the modes of unifying systems and establishment by city, the establishment of the provincial micro, small and medium-sized enterprise credit information and financing connection platform shall be accelerated to realize search of credit information of micro, small and medium-sized enterprises, credit rating, online application for loans, release of the information on supply of and demand for financing, and brokerage and following and prompt government departments at all levels and financial institutions providing micro, small and medium-sized enterprises with financing services, such as banks, insurance companies, guarantee companies, and small-loan companies, to share credit ratings and relevant information. All municipal governments at and above the prefecture level shall establish and improve locally interconnected government information resource sharing platforms and connect them with the provincial credit information and financing platform. The specific establishment plan shall be separately developed by the Guangzhou Branch of the People's Bank of China in conjunction with the Provincial Commission of Economy and Information Technology and the Finance Department. (The Guangzhou Branch of the People's Bank of China shall take the lead, and the Provincial Commission of Economy and Information Technology, the Finance Department, the relevant departments directly under the provincial government, and all the municipal governments at and above the prefecture level shall participate)
II. Establishing a provincial micro, small and medium-sized enterprise development fund. The provincial public finance shall arrange a special grant, the support of the National Small and Medium-Sized Enterprise Development Fund shall be earned at the same time, private capital shall be attracted to participate, and a provincial micro, small and medium-sized enterprise development fund shall be jointly established; and all regions and financial institutions with good conditions shall be encouraged to make contributions to and establish sub-funds and, by means of equity investment, support micro, small and medium-sized enterprises in the advanced manufacturing industry, modern service sector, and strategic emerging industries and fields. The contribution made by the public finance at all levels shall, when leaving, transfer according to the law 50% of the net yield to the other founders of the fund. The specific implementation measures shall be separately developed by the Provincial Commission of Economy and Information Technology in conjunction with the Provincial Finance Department. (The Provincial Commission of Economy and Information Technology shall take the lead, and the Provincial Finance Department and all the relevant municipal governments at and above the prefecture level shall participate)
III. Vigorously developing venture capital and other funds. By reference to the operating mode of the National Venture Capital Guide Fund for Emerging Industries, the Guangdong Provincial Venture Capital Guide Fund for Strategic Emerging Industries shall be vigorously used, the establishment of micro, small and medium-sized enterprises in strategic emerging industries and featuring high technology shall be supported, social capital shall be guided in supporting in priority micro, small and medium-sized startups in emerging industries and fields including intelligent manufacturing, high-end equipment, biomedicine, new energy, and energy conservation and environmental protection, and when the fund leaves, the contribution made by the public finance shall transfer according to the law 50% of the net yield to the other investors. The efficiency of the use of the Provincial Venture Capital Guide Fund shall be improved, and all regions shall be encouraged to establish a group of industry investment funds and venture capital guide funds. The role of enterprises under the provincial government, such as the Technology Financial Group, the Guangdong Yueong Investment Holding Co. Ltd., the Guangdong Hengjian Investment Holdings Co., Ltd., shall be maximized, and the size of venture capital and angel funds shall be expanded. Private capital shall be encouraged and guided in entering the fields of venture capital, privately offered equity investment, and venture capital. The clusters of industrial parks, high and new technology areas and incubators shall be depended on to guide the clustering development of various funds. (The Provincial Development and Reform Commission and the Finance Department shall take the lead, and the Provincial Commission of Economy and Information Technology, the Science and Technology Department, and other departments shall participate)
IV. Improving the micro, small and medium-sized enterprise credit risk compensation mechanism. The provincial public finance shall arrange a special grant to support cities at and above the prefecture level in establishing micro, small and medium-sized enterprise credit risk compensation appropriation and grant loan risk compensation to banks, guarantee, insurance and other institutions providing micro, small and medium-sized enterprises with financing services. Banks shall provide key industry clusters, upstream and downstream industry chain of large-sized leading enterprises, business areas, and other clusters of micro, small and medium-sized enterprises with batch loans and provide credit enhancement support for micro, small and medium-sized enterprise credit risk compensation appropriation. (The Provincial Commission of Economy and Information Technology shall take the lead, and the Provincial Finance Department, the Guangzhou Branch of the People's Bank of China, the Guangdong Office of the China Banking Regulatory Commission, the Guangdong Office of the China Insurance Regulatory Commission, and all the relevant municipal governments at and above the prefecture level shall participate)
V. Establishing and improving micro, small and medium-sized enterprise financing policy guarantee and re-guarantee institutions. The municipal and provincial public finance shall arrange a special grant to attract the participation of private capital and establish one to two micro, small and medium-sized enterprise policy guarantee or re-guarantee institutions dominated by the government in each city at or above the prefecture level. Existing policy guarantee or re-guarantee institutions in all cities at and above the prefecture level shall be supported in increasing their capital. Pilot partner banks shall be selected to apply by agreement a weighted average rate of interest, no higher than that on the bank loans across the province in the preceding year, to loans to micro, small and medium-sized enterprises guaranteed by policy guarantee institutions; and the annual rate of the guarantee fees collected by a policy guarantee institution from micro, small and medium-sized enterprises shall not exceed 2%, and no earnest money for loans shall be demanded. The tolerance in the performance appraisal of policy guarantee and re-guarantee institutions shall be eased, and the net yield of fiscal appropriation shall be all transferred to the other investors in guarantee institutions. The special grant arranged by the provincial public finance shall be continuously injected into provincial re-guarantee companies. The ratio of the re-guarantee business for micro, small and medium-sized enterprises conducted by a provincial re-guarantee company shall not be less than 60%, private capital and foreign capital shall be continuously encouraged to enter the financing guarantee industry according to the law, the administration of the credit and risk of private financing guarantee institutions shall be enhanced, and a sound, coordinated bank-guarantee relation shall be established. It shall be explored that regulated, sound financing guarantee institutions of large size and powerful strength, having certain brand influence, establish financial groups especially serving micro, small and medium-sized enterprises. (The Provincial Commission of Economy and Information Technology shall take the lead, and the Provincial Financial Affairs Office, the Finance Department, the Guangzhou Branch of the People's Bank of China, the Guangdong Office of the China Banking Regulatory Commission, and all the municipal governments at and above the prefecture level shall participate)
VI. Vigorously developing small-amount loan guarantee insurance business. The functions of financing guarantee and credit enhancement of credit guarantee insurance shall be used, and a group of insurance companies and banks shall be selected to provide micro, small and medium-sized enterprises with small-amount loan guarantee insurance financing services. Cities at and above the prefecture level shall be supported in allocating appropriation for small-amount loan guarantee insurance to defray the premiums according to a certain ratio paid by the micro, small and medium-sized enterprises taking out the loan guarantee insurance, and insurance companies, banks and the appropriation shall share in proportion the damage caused to the principal by non-performing loans. The specific implementation measures shall be separately developed by the Provincial Financial Affairs Office in conjunction with the relevant departments. (The Provincial Financial Affairs Office shall take the lead, and the Provincial Commission of Economy and Information Technology, the Provincial Finance Department, the Guangzhou Branch of the People's Bank of China, the Guangdong Office of the China Banking Regulatory Commission, the Guangdong Office of the China Insurance Regulatory Commission, and all the relevant municipal governments at and above the prefecture level shall participate)
VII. Enhancing the financing services for micro, small and medium-sized enterprises provided by banking institutions. Banking financial institutions shall be supported in strengthening the building of special bodies of financial services for micro, small and medium-sized enterprises, expanding the micro, small and medium-sized enterprise credit products, innovating on service modes, implementing the relevant indicator requirements issued by the state, separately making credit plans for micro and small-sized enterprises, and realizing that the growth rate of loans to small and micro-sized enterprises is not lower than the average growth rate of all loans, the number of micro and small enterprises receiving loans is not lower than that over the same period in the preceding year, and the loan availability rate of micro and small enterprises is not lower than that over the same period in the preceding year. Top three financial institutions in the annual effect assessment of micro and small-sized enterprise credit guidance by the People's Bank of China shall be rewarded. It shall be ensured in priority that local financial institutions provide micro, small and medium-sized enterprises with financing services. The Guangzhou Branch of the People's Bank of China shall use the increase in the re-loan supporting small and micro-sized enterprises to support qualified local financial institutions. Qualified industry capital and private capital shall be supported in establishing according to the law private banks, village banks, group finance companies, financial leasing companies, consumer finance companies, and other new types of financial institutions, the market orientation that small-sized financial institutions mainly serve micro, small and medium-sized enterprises shall be enhanced, and products and services shall be innovated on based on the business characteristics and the character of demand for financing of micro, small and medium-sized enterprises. (The Guangzhou Branch of the People's Bank of China and the Guangdong Office of the China Banking Regulatory Commission shall take the lead, and the Provincial Commission of Economy and Information Technology, the Finance Department, and the Financial Affairs Office shall participate)
VIII. Conducting the pilot program of innovation on the modes of re-lending to micro, small and medium-sized enterprises. The cost of "bridge financing" for micro, small and medium-sized enterprises shall be reduced. All cities at and above the prefecture level shall be encouraged to establish micro, small and medium-sized enterprise re-lending cash pools and guide social capital to participate, so that the cash pools provide micro, small and medium-sized enterprises meeting the conditions for refinancing as reviewed by banks under the pilot program with revolving funds for re-lending. Banks shall be supported in, on the premise of controllable risks, taking measures, such as approval of refinancing in advance, establishment of revolving loans, and reasonable repayment of the principal of loans in installments, to raise re-lending efficiency and ease the repayment pressure on micro, small and medium-sized enterprises. (All municipal governments at and above the prefecture level, the Provincial Financial Affairs Office, the Guangzhou Branch of the People's Bank of China, and the Guangdong Office of the China Banking Regulatory Commission shall be responsible)
IX. Vigorously, soundly developing small-amount loans. The provincial public finance shall arrange a special grant to award risk compensation in a certain proportion for the loans issued by small-loan companies to micro and small-sized enterprises. Small-loan companies shall be included in the scope of fiscal subsidies and reward established by the governments in all regions for newly established financial institutions. Quality small-loan companies shall be encouraged to conduct innovative business, raise financing ratio, and conduct cross-county business. The procedures for securitized issuance of credit assets of small-loan companies shall be simplified, and the costs of the issuance shall be reduced. E-commerce enterprises with financial strength shall be supported in establishing Internet small-loan companies. (The Provincial Financial Affairs Office shall take the lead, and the Provincial Financial Department and the Guangzhou Branch of the People's Bank of China shall participate)
X. Supporting micro, small and medium-sized enterprises in raising funds through multi-layer capital markets. The role of regional equity markets in Guangzhou, Qianhai of Shenzhen, and the Guangdong Finance and High and New Technology Service Zone, among others, shall be maximized, they shall be supported in realizing the coverage of the whole province by the "four-board" markets by establishing operations centers and service bodies in the other regions so as to facilitate micro, small and medium-sized enterprises in directly raising funds. Regional equity markets shall be encouraged to using credit information and the credit rating by financing platforms to simplify the formalities for the listing of enterprises. "Guangdong Provincial Fast Expanding Small and Medium-Sized Enterprise Board," "Science and Technology Board," and "Young Entrepreneur Board," among others, shall be launched at regional equity markets to provide micro, small and medium-sized enterprises with diversified financing and equity transfer services. Regional equity markets shall be guided in strengthening their connection with the new third board, the National Equities Exchange and Quotations System, and the small and medium-sized enterprise board, establishing a scientific, reasonable board transfer mechanism, fostering and incubating in priority the enterprises that are able to meet the standards for listing at the new third board, the National Equities Exchange and Quotations System, or the small and medium-sized enterprise board, and propose board transfer when conditions are mature. (The Provincial Commission of Economy and Information Technology shall take the lead, and the Provincial Science and Technology Department, the Provincial Financial Affairs Office, and the Guangdong Office of the China Securities Regulatory Commission shall participate)
XI. Expanding the channels for micro, small and medium-sized enterprises to raise funds by issuing bonds. Private placement bonds shall be issued for micro, small and medium-sized enterprises by depending in priority on regional equity markets, and provincial re-guarantee companies and all municipal policy guarantee institutions shall guarantee and enhance the credit of private placement bonds issued by micro, small and medium-sized enterprises. Supply chain negotiable instruments shall be issued by depending on large-sized backbone enterprises, micro, small and medium-sized enterprises that support their industry chain shall be provided with financing, and the Guangzhou Branch of the People's Bank of China shall provide relevant lending institutions with credit limit, re-discount, reserves, and other monetary policy support. With various industrial bases (parks), high and new technology zones, and specialized towns as platforms, regional collective bonds of micro, small and medium-sized enterprises, regional collective notes, and micro and small-sized enterprise credit enhancement collective bonds shall be issued. Municipal and provincial venture capital enterprises shall be encouraged to issue venture capital bonds. The provincial public finance shall arrange a special grant to support micro, small and medium-sized enterprises in raising funds by issuing bonds. (The Guangzhou Branch of the People's Bank of China and the Guangdong Office of the China Securities Regulatory Commission shall take the lead, and the Provincial Development and Reform Commission, the Commission of Economy and Information Technology, the Finance Department, and the Financial Affairs Office shall participate)
XII. Expanding the direct financing of micro, small and medium-sized enterprises by depending on the Internet finance. Internet finance enterprises represented by third-party payment, peer-to-peer (P2P) online lending, and crowdfunding platforms, among others, shall be allowed to use the expressions such as "Internet financial information services" and "Internet finance" in their registered enterprise names and business scopes. The pilot program of Internet equity-based investment crowdfunding shall be conducted, and equity-based investment crowdfunding trading board shall be established at regional equity markets to realize the registration confirmation and circulation exchange of equity-based investment crowdfunding of micro, small and medium-sized enterprises. Leading supply chain enterprises shall be supported in providing micro, small and medium-sized enterprises with comprehensive services including financing. Internet finance platforms shall be developed in a regulated manner to practically prevent financial risks. (The Provincial Financial Affairs Office shall take the lead, and the Provincial Administration for Industry and Commerce, the Guangzhou Branch of the People's Bank of China, the Guangdong Office of the China Banking Regulatory Commission, the Guangdong Office of the China Securities Regulatory Commission, and all the relevant municipal governments at and above the prefecture level shall participate)
XIII. Supporting the replacement and finance lease of equipment of micro, small and medium-sized enterprises. The replacement and finance lease of equipment shall be vigorously developed, and micro, small and medium-sized enterprises shall be supported in raising funds with fixed assets. The catalog administration of equipment and products subject to finance lease shall be implemented, and the provincial public finance shall arrange a special grant to subsidize the interest in a certain proportion to the investment in the equipment under the lease if a finance lease company rents out the equipment in the catalog to micro, small and medium-sized enterprises. (The Provincial Commission of Economy and Information Technology shall take the lead, and the Provincial Finance Department and the Commerce Department shall participate)
XIV. Giving more support for the discount of negotiable instruments of micro, small and medium-sized enterprises. Three banks shall be selected to establish "Guangdong Provincial Micro, Small and Medium-Sized Enterprise Small-Amount Negotiable Instrument Discounting Center" to discount the small-amount commercial drafts held by micro, small and medium-sized enterprises, and the Guangzhou Branch of the People's Bank of China shall provide in priority the Center with re-discounting services and, based on the volume of the discount business, arrange the re-discount limit especially used for the financing of micro, small and medium-sized enterprises. (The Provincial Commission of Economy and Information Technology and the Guangzhou Branch of the People's Bank of China shall take the lead, and the Guangdong Office of the China Banking Regulatory Commission shall participate)
XV. Conducting the pilot program of using cross-border Chinese currency lending to support the financing of micro, small and medium-sized enterprises. Depending on the policy advantages of the China (Guangdong) Pilot Free Trade Zone, it shall be explored and promoted that micro, small and medium-sized enterprises within the Zone borrow Chinese currency funds from overseas, so as to promote the facilitation of the raising funds from overseas by micro, small and medium-sized enterprises. The expansion of funding sources and scope of use of cross-border Chinese currency lending shall be explored, lenders shall be expanded to overseas financial institutions, and the destination of lending shall better serve the financing of micro, small and medium-sized enterprises. (The Guangzhou Branch of the People's Bank of China shall take the lead, and the Provincial Office of the China (Guangdong) Pilot Free Trade Zone shall participate)
XVI. Animating the mortgaged and pledged things of micro, small and medium-sized enterprises. The quota of transfer of land approved but not allocated shall be revitalized, the quota of land use shall be first arranged for science and technology, capital intensive, and fast expanding micro, small and medium-sized enterprises, and the formalities for right to use land certificate shall be simplified. A unified immovable registration system shall be established at a faster pace, immovable evaluation institutions shall be regulated, and the establishment of evaluation, trading and disposition platforms shall be explored. The measures for the administration of registration of pledge of intellectual property rights shall be improved, and the technical specifications of evaluation of pledge of intellectual property rights shall be issued. Banks and financing guarantee institutions shall be encouraged to provide new pledge financing, and all municipal policy guarantee institutions shall provide guarantee-based credit enhancement. The specific implementation measures shall be separately developed by the department taking the lead. (The Provincial Land and Resources Department and the Intellectual Property Office shall take the lead, and the Provincial Housing and Urban-Rural Development Department, the Agriculture Department, the Forestry Department, the Administration of Industry and Commerce, and the Ocean and Fishing Department shall participate)
XVII. Developing a micro, small and medium-sized enterprise investment and financing dispute quick mediation mechanism. A legal service mechanism of quick mediation and disposition of disputes adapting to few case-related assets of micro, small and medium-sized enterprises and short disposition term shall be developed, and the crackdown upon various violations of the laws and regulations, such as escape from financial obligations, shall be intensified. The judicial relief for micro, small and medium-sized enterprises shall be strengthened, the provincial public finance shall allocate special appropriation for national judicial relief, and the inclusion of micro, small and medium-sized enterprises with difficulties in the scope of judicial relief, such as delay in payment of and concession of legal costs, shall be researched. The legal services for micro, small and medium-sized enterprises shall be strengthened. A micro, small and medium-sized enterprise investment and financing complaint platform shall be established. (The Provincial Justice Department shall take the lead)
XVIII. Giving more fiscal support for the investment and financing of micro, small and medium-sized enterprises. From 2015 to 2017, the provincial public finance will arrange in an overall manner a special grant of 6.6 billion yuan to mainly establish micro, small and medium-sized enterprise development funds and make equity investment, arrange special appropriation for supporting small-amount loans, guarantees, and risk compensation, among others, and comprehensively use business subsidies, reward for incremental business, interest subsidies, subsidies for repayment by subrogation, reward for innovation, and other means to produce the leverage effect of fiscal appropriation and guide and promote more social capital in supporting the investment and financing of micro, small and medium-sized enterprises. (The Provincial Finance Department shall take the lead, and the Provincial Commission of Economy and Information Technology and the Financial Affairs Office shall participate)
People's Government of Guangdong Province
July 3, 2015