National standing Committee: allow local government special bonds to reasonably support small and medium-sized banks to replenish capital

Published: Jul 01, 2020 20:04 (GMT+8)

SMM: the Premier of the State Council presided over an executive meeting of the State Council and decided to focus on strengthening the capacity of small and medium-sized enterprises in financial services and allow local government special debts to reasonably support small and medium-sized banks to replenish their capital; deploy to further promote the deepening of reform and opening up of national high-tech industrial development zones, promote high-quality development; and adopt the regulations on ensuring payment for small and medium-sized Enterprises (draft) to safeguard their legitimate rights and interests.

The full text is as follows:

Premier Li Keqiang presided over an executive meeting of the State Council on July 1 and decided to focus on strengthening the capacity of small and medium-sized enterprises in financial services and allow local government special loans to reasonably support small and medium-sized banks to replenish their capital; adopt the regulations on ensuring payment for small and medium-sized Enterprises (draft) to safeguard their legitimate rights and interests; and make arrangements to further promote the deepening of reform and opening up of national high-tech industrial development zones to promote high-quality development.

The meeting pointed out: in accordance with the arrangements of the CPC Central Committee and the State Council, to do a good job in the work of "six stability" and "six guarantees", especially to ensure the survival and development of small and medium-sized enterprises and private enterprises, we must increase financial support and give full play to the indispensable role of small and medium- The meeting decided to arrange a certain amount in the new local government special debt limit this year to allow local governments to explore new ways to reasonably replenish the capital of small and medium-sized banks by subscribing for convertible bonds in accordance with the law. First, we should give priority to supporting small and medium-sized banks with sustainable market-oriented operation ability to replenish capital, enhance their ability to serve small and medium-sized enterprises and support employment protection. The second is to support the replenishment of capital to promote reform and exchange mechanism, and to improve the governance and internal control mechanism of small and medium-sized banks as important conditions to support the replenishment of capital. Third, it is necessary to consolidate the territorial responsibilities of local governments, the main responsibilities of banks and shareholders, and the regulatory responsibilities of financial management departments, and under the premise of fully clearing and verifying assets, investigating risks and serious accountability in accordance with the law, we should steadily promote the replenishment of capital in line with one policy after another. localities should also fully tap the potential of other resources to give support. Fourth, strengthen supervision and audit supervision of the whole process. We will establish a market-oriented and timely exit mechanism for the reasonable replenishment of capital for special debts, and strictly guard against moral hazard.

The meeting pointed out that at present, to stabilize the basic economic market, efforts should be made to help small and medium-sized enterprises tide over the difficulties. It is urgent to issue laws and regulations to protect the payment of small and medium-sized enterprises and safeguard their legitimate rights and interests. The meeting adopted the regulations on ensuring the payment of small and medium-sized Enterprises (draft), stipulating the conclusion of contracts, financial guarantee, and methods of payment between government organs, institutions, large enterprises and small and medium-sized enterprises, standardizing the time limit for payment, and clarifying the requirements for inspection and acceptance. it is stipulated that payment shall not be refused or delayed on the grounds of change of responsible person, waiting for acceptance, final account audit, etc., and establish a system of disclosure of payment information. Government organs, institutions and large enterprises are required to disclose or disclose to the public the contract quantity and amount of overdue payments to small and medium-sized enterprises within a specified period of time, and set provisions such as handling complaints for breach of contract and delinquency, punishment for breach of trust, punishment and liability, and so on. The meeting demanded that organs and institutions at all levels should take the lead in setting an example in implementing laws and regulations and ensuring payments, and state-owned enterprises and large platform enterprises should also strictly implement the laws and regulations. Typical cases of arrears to small and medium-sized enterprises should be publicly exposed, and the General Office of the State Council and relevant departments should strengthen supervision and inspection to ensure that laws and regulations are implemented in place.

The meeting pointed out that national high-tech zones are an important carrier for promoting high-quality development, play an important role in demonstrating and leading greater efforts in reform and opening up, and are also conducive to promoting mass entrepreneurship and innovation and the employment of college graduates. First, it is necessary to copy and promote the relevant reform pilot policies such as the free trade pilot zone and the national independent innovation demonstration zone in the national high-tech zone, and strengthen the innovation policy on a pilot basis. Relax the regulations on long-term multiple visas and residence permits for overseas talents. Second, it is necessary to increase the opening up of national high-tech zones, encourage various forms of cooperation with foreign parks, and better integrate into the international industrial chain and supply chain. Third, commercial banks should be encouraged to set up science and technology branches in national high-tech zones, support the development of intellectual property pledge financing, and support the listing financing of qualified national high-tech zone development and construction main bodies.

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