A few days ago, China's central bank issued a notice: strengthen financial services to support winning the epidemic prevention and control blockade.
The notice encourages banking institutions to support the relevant enterprises to overcome the epidemic disaster by appropriately lowering the lending rate, improving the policy arrangements for loan renewal, and increasing credit loans and medium- and long-term loans;
At the same time, accelerate the LPR reform, guide the downward trend of the cost of social financing, in particular, to reduce the cost of financing for the enterprises in the field of epidemic prevention and control and the livelihood of the enterprises.
I. Maintaining a reasonable abundance of liquidity and increasing monetary and credit support
(1) Maintaining a reasonable abundance of liquidity. The People's Bank of China (PBOC) continues to strengthen the guidance of expectations, provide sufficient liquidity through various monetary policy tools such as open market operations, standing lending facilities, re-lending, re-discounting, etc., maintain a reasonably abundant liquidity in the financial market, and safeguard the stable operation of the money market interest rates. Branches of the People's Bank of China have appropriately increased the tolerance of the deposit reserve assessment in the second half of January 2020 according to the actual situation for financial institutions affected by adjustments due to the Chinese New Year holiday. Guide financial institutions to increase credit investment to support the real economy and promote reasonable growth in money and credit.
(ii) Increase credit support for areas related to epidemic prevention and control. During the period of epidemic prevention and control, the People's Bank of China, together with the Development and Reform Commission and the Ministry of Industry and Information Technology, has implemented a list system for the production, transportation and sale of important medical supplies such as medical protective clothing, medical masks, medical goggles, new coronavirus test kits, negative-pressure ambulances, sterilizers, 84 disinfectant, infrared thermometers and related medicines for use in responding to epidemics and the backbone of the enterprises that provide important living supplies. The People's Bank of China has provided low-cost funds to financial institutions through special refinancing to support financial institutions in providing credit support at preferential interest rates to enterprises on the list. The central financial authorities will provide subsidized interest rate support to enterprises that are the key guarantors of epidemic prevention and control. Financial institutions should take the initiative to strengthen service docking with relevant hospitals, medical research units and related enterprises, provide sufficient credit resources, and make every effort to meet the reasonable financing needs of relevant units and enterprises for epidemic prevention and control, manufacturing and procurement of medical supplies, construction of public *** health infrastructure, scientific research and technological transformation.
(3) Provide differentiated and preferential financial services for regions, industries and enterprises that are more affected by the epidemic. Financial institutions should enhance the financial supply capacity of regions seriously affected by the epidemic by adjusting regional financing policies, transfer pricing of internal funds, and implementing differentiated performance appraisal methods. For industries such as wholesale and retail, accommodation and catering, logistics and transportation, culture and tourism, which are greatly affected by the epidemic, as well as enterprises, especially small and micro-enterprises, which have development prospects but are experiencing temporary difficulties due to the epidemic, they shall not blindly withdraw, cut off or suppress loans. For enterprises seriously affected by the epidemic that have difficulties in repaying loans upon maturity, loans may be extended or renewed. The relevant enterprises will be supported to overcome the impact of the epidemic disaster by appropriately lowering the loan interest rate, increasing credit loans and medium- and long-term loans. Governmental financial guarantee and re-guarantee institutions at all levels should abolish counter-guarantee requirements and reduce guarantee and re-guarantee fees. For the financial guarantee re-guarantee institutions in areas seriously affected by the epidemic, the National Financing Guarantee Fund shall reduce the re-guarantee fee by half.
(4) Improve financial services in social and livelihood areas affected by the epidemic. Hospitalized or quarantined persons infected with the new type of pneumonia, epidemic prevention and control need to isolate and observe the personnel, participate in the epidemic prevention and control of staff as well as affected by the epidemic temporarily lost their sources of income of the crowd, financial institutions should be appropriate in the credit policy to tilt, flexible adjustment of housing mortgages, credit cards and other personal credit repayment arrangements, a reasonable postponement of repayment period. Individuals infected with the new type of pneumonia can extend their guaranteed loans for entrepreneurship for one year and continue to enjoy financial subsidized interest support. For customers infected with a new type of pneumonia or damaged by the impact of the epidemic insurance claims, financial institutions should prioritize the processing, the appropriate expansion of the scope of responsibility, should be compensated for as much as possible.
(v) Improve the efficiency of financial services during the epidemic. For the financing needs of the areas and regions affected by the epidemic, financial institutions should establish and launch fast approval channels, simplify business processes, and effectively improve the efficiency of business processing. In areas subject to traffic control, financial institutions should innovate working methods, take office in the nearest branch, hold video conferences and other ways to deal with the approval and release of funds as soon as possible for enterprises and other businesses.
(F) support developmental and policy banks to increase credit support. China Development Bank, Export-Import Bank, Agricultural Development Bank to combine their own scope of business, strengthen coordination, rationalize the adjustment of credit arrangements, and increase the market-based financing difficulties in the production and research and development of epidemic prevention units and enterprises, medical supplies import procurement, as well as the production of important living materials supply enterprises, transportation and sales of financial support, to reasonably meet the needs of epidemic prevention and control.
(7) Strengthen credit support in key areas such as manufacturing, small and micro enterprises, and private enterprises. Financial institutions to strengthen service capacity building around internal resource allocation, incentive assessment arrangements, continue to increase support for small and micro-enterprises, private enterprises, to maintain the loan growth rate, the effective implementation of the integrated financing cost pressure reduction requirements. Increase the investment of medium and long-term loans in the manufacturing industry.
(viii) play financial leasing characteristic advantages. For the financial leasing company in the financial leasing business for epidemic prevention and control related medical equipment, encourage to be suspended or reduce the relevant rent and interest, provide medical equipment leasing preferential financial services.
Second, the rational scheduling of financial resources, to protect the people's daily financial services
(ix) to protect the basic financial services unimpeded. Financial institutions should be based on the epidemic prevention and control work needs, reasonable arrangements for business outlets and business hours, effectively do a good job of cleaning and disinfecting the business premises, to ensure that the basic financial services unimpeded. Financial institutions should strengthen online services nationwide, especially in areas with serious epidemics, and guide enterprises and residents to handle financial services through the Internet, cell phone APPs and other online methods.
(j) Strengthen cash management in circulation. Rationalize the deployment of cash resources to ensure an adequate supply of cash. Increase the supply of cash to hospitals, residential communities and emergency construction projects, etc., and promptly meet the large cash needs of units and enterprises related to the procurement of epidemic materials. Do a good job of sterilizing cash storage and business processing sites. As far as possible, cash paid externally is mainly in the form of new vouchers, and cash received is deposited with local branches of the People's Bank of China after taking measures to sterilize it.
(xi) to ensure the smooth operation of payment clearing. The People's Bank of China, according to the need to liberalize the small payment system business limits, extend the large-value payment system, the central bank accounting data centralized system operation time, support financial institutions on-line for the RMB payment deposit and other businesses. Branches of the People's Bank of China, clearing agencies and banking financial institutions should do a good job of all kinds of payment and clearing systems, the central bank accounting data centralized system of normal and safe operation, the opening of the epidemic prevention and control of a special channel, to ensure that the foreign rescue and donation funds in a timely manner to allocate in place, the flow of social funds efficient and smooth.
(xii) the establishment of bank account epidemic prevention "green channel". Banking financial institutions to do a good job of preventing and controlling the epidemic under the premise of risk control related bank account services, simplify the account opening process, speed up business. To actively open donation "green channel", to ensure that the epidemic prevention and control of money the first time to reach the designated payee account. Reduce or waive the banking financial institutions through the People's Bank of China payment system for the prevention and control of the epidemic related payments remittance fees. Encourage clearing agencies and banking financial institutions to reduce or waive service handling fees for transfer and remittance operations to accounts of charitable organizations or special accounts in epidemic-affected areas, as well as cash withdrawal operations to epidemic-affected areas.
(xiii) Increase the protection of electronic payment services. Support banking financial institutions, non-bank payment institutions in the epidemic prevention and control period, the use of remote video, telephone and other ways to handle merchant access audit and daily inspection, through transaction monitoring to strengthen risk prevention and control. Encourage clearing agencies, banking financial institutions and non-bank payment institutions to implement preferential payment service handling fees for special merchants in specific areas or regions. Banking financial institutions and non-bank payment institutions should strengthen the service guarantee of electronic channels, flexibly adjust the relevant business limits, and guide customers to handle payment and settlement business online through electronic channels such as the electronic commercial draft system, personal online banking, corporate online banking, mobile banking, and payment service APP.
(xiv) Effective protection of public credit-related rights and interests. Branches of the People's Bank of China and financial credit information database access organizations should properly arrange credit inquiry services and guide the public to make credit inquiries through the Internet and self-service inquiry machines. Reasonable adjustments shall be made to the reporting of overdue credit records. For those who are hospitalized or quarantined due to infection with new type of pneumonia, those who need to be isolated for observation for epidemic prevention and control and those who participate in the prevention and control of epidemic, and who fail to make repayment in time due to the impact of the epidemic, as determined by the access agency, the relevant overdue loans can be reported as overdue records without being reported, and those who have already been reported shall be adjusted. For individuals and enterprises that have temporarily lost their sources of income due to the impact of the epidemic, they can report their credit records according to the adjusted repayment arrangements.
(xv) Smooth the channel of emergency appropriation by the Treasury. The establishment of treasury bank collaborative working mechanism, timely understanding of the financial sector epidemic prevention and control funds allocation arrangements, ready to do the work of funds allocation. Strengthen the guidance of the relevant business of commercial banks, establish an information feedback mechanism, and timely tracking of funds disbursement. The People's Bank of China and commercial banks to ensure the smooth flow of funds remittance channels and treasury business related systems operating safely and stably, to build the epidemic prevention and control of funds allocation "green channel". Treasury departments at all levels should simplify business processes and procedures to ensure timely, safe and accurate disbursement of funds for epidemic prevention and control in place.
(16) effectively protect the legitimate rights and interests of consumers. Financial institutions to establish a responsible financial concept, the impact of the epidemic temporary closure or adjustment of business hours of the outlets, to be announced to the community in advance and take the initiative to explain the proximity of normal business outlets. Financial institutions should make full use of online and other means to keep complaint channels open, optimize the customer consultation and complaint handling process, and handle epidemic-related financial consultations and complaints in a timely and appropriate manner. Financial institutions should effectively strengthen industry self-discipline, maintain market order, and not take advantage of the epidemic to conduct inappropriate financial marketing campaigns.
Three, to ensure the safety of the financial infrastructure, to maintain the smooth and orderly operation of the financial market
(xvii) Strengthen the financial infrastructure services to ensure. The financial market infrastructure should enhance the service guarantee ability from the working mechanism, staffing, office space, system operation and maintenance, technical support, etc., to ensure the normal operation of the issuance, trading, clearing, settlement and other businesses, as far as possible, the implementation of the whole process, the whole chain of online operations. It is necessary to formulate contingency plans for quick response and efficient handling of emergencies. It is necessary to strengthen communication with competent authorities, market organizations and other financial infrastructures, and keep the business system connected and smooth. For areas affected by the epidemic, "green channels" should be opened, special service arrangements should be provided when necessary, and service charges should be reduced.
(xviii) Stabilizing financial market-related business. Financial institutions should reasonably deploy personnel to carry out financial market-related transactions, clearing, settlement, issuance, underwriting and other work in a prudent manner, and strengthen liquidity management and risk response. It is necessary to reasonably guide investors' expectations and ensure the smooth and orderly development of financial market operations. Financial institutions in areas affected by the epidemic should maintain normal business contacts and increase support.
(xix) Improve the efficiency of bond issuance and other services. China Association of Inter-bank Market Dealers, Shanghai Stock Exchange, Shenzhen Stock Exchange, etc. to optimize the workflow of corporate credit bond issuance, encourage financial institutions to submit online corporate credit bond issuance declaration materials, remote filing, registration, etc., to reduce the risk of spreading the epidemic. The funds raised are mainly used for epidemic prevention and control as well as the issuance of financial bonds, asset-backed securities and corporate credit bonds by financial institutions and enterprises in areas with heavy epidemics to establish a "green channel" for registration and issuance, and the securities market self-regulatory organizations to invest in the private equity investment fund for the production and research and development of epidemic prevention-related medical equipment, vaccine and pharmaceutical enterprises. Establishment of a "green channel" for registration and filing by self-regulatory organizations in the securities market for private equity funds intending to invest in vaccine-related medical equipment and vaccine drug production and research and development enterprises, to effectively improve the efficiency of services.
(xx) Flexible and proper adjustment of corporate disclosure and other regulatory matters. Listed companies, listed companies, corporate bond issuers affected by the epidemic, within the legal deadline to disclose the 2019 annual report or the first quarter of 2020 quarterly report has difficulties, the Securities and Futures Commission, stock exchanges, the National Small and Medium Enterprises Stock Transfer System should be properly arranged in accordance with the law. Listed companies affected by the epidemic and having difficulties in disclosing performance previews or performance snapshots on schedule may apply to the stock exchange for an extension of the process; if it is difficult to disclose the 2019 annual report on the original scheduled date, it may apply to the stock exchange for an extension to disclose it before April 30, 2020. The securities fund operators in Hubei Province may apply to the local securities regulatory bureau for an extension of the audit, disclosure and reporting of the annual report. For public funds or other asset management products managed by securities fund operators that are significantly affected by the epidemic, the managers may apply to the local securities regulatory bureau for an extension of the audit and disclosure of the annual report. For securities fund futures operating institutions in areas severely affected by the epidemic, the regulatory standards for relevant risk control indicators will be appropriately relaxed.
(xxi) Appropriately relax the time limit for handling capital market-related business. Appropriately extend the validity period of financial information for administrative licenses for mergers and acquisitions and reorganizations of listed companies and the time limit for issuing notice of convening a shareholders' meeting after the disclosure of the reorganization proposal. If, due to the impact of the epidemic, the company really cannot update the financial information or issue the notice of shareholders' meeting as scheduled, the company may apply for an extension of the validity period of the financial information or the notice of the shareholders' meeting for one month, or up to three times, after fully disclosing the specific impact of the epidemic on the reorganization. During the epidemic, the time limit for responding to feedback, the time limit for responding to notification letters, the time limit for terminating the expiration of financial reports, and the validity period of refinancing approvals already issued to stock issuers shall be suspended from the date of issuance of this Circular. Bond issuance permits have been obtained, due to the impact of the epidemic failed to complete the issuance within the validity period of the permit, you can apply for an extension of the issuance to the SEC.
(xxii) Reduce or waive some of the fees for listing companies in areas with serious epidemics. Waive the annual listing and listing fees for 2020 payable by listed and quoted companies in Hubei Province to the stock exchanges and the National Small and Medium Enterprises Stock Transfer System. Waive the 2020 annual dues and seat fees payable to the futures exchanges by futures companies in Hubei Province.