The High-tech Zone promotes the integration of technology and finance by RMB104 million

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The High-tech Zone promotes the integration of technology and finance by RMB104 million

(People's Daily Online) 10:14, October 31, 2013

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The High-tech Zone promotes the integration of technology and finance by RMB104 million

Finance is the main motive power of regional development. Recently, the High-tech Zone of Xi'an pays a big sum of special fund for technology and finance. Hundreds of technology enterprises and financial institutions obtain a special subsidy for technology and finance with RMB104 billion in total, and lever bank loans, guaranteed loans, and technology insurances with RMB14.469 billion in total, which greatly promotes the integration of technology and finance, and facilitates numerous small and micro technology enterprises in the High-tech Zone to develop into big enterprises.

"Difficult Financing" and "Expensive Financing" problems for SMMEs

It has been a key to promoting regional innovation vitality and a strategic selection for the High-tech Zone to increase capacity of independent innovation and construct the world first-class technology zone by enhancing the guidance of financial resources allocation to technology fields, speeding up diversified multilevel and multichannel technology investment and financing mechanism, and creating good and loose investment and financing environment for the development of technology enterprises. The journalist knew from the interview that though current High-tech Zone has good financial environment, the enterprises still face the problems including "Difficult Financing" and "Expensive Financing" in the commercialization process of research findings and industrialization process. Shortage of funds is still a bottleneck of high-tech enterprises, especially middle, small, and micro technology enterprises when they develop into big enterprises. The enterprises have strong demand for innovative technology & financial products.

"Most classically, an enterprise with poor technology innovation capacity has weak attraction to venture investment and has no international financing power. However, the enterprise of the leaping development stage has great fund demand. Thus, we constantly improve the financial environment and service mechanism by means of ‘Angel' Fund for start-up enterprises and cultivation for listing enterprises to support the whole course of enterprise development, and cultivate a number of small giant enterprises driven by the leading enterprises to construct the regional technology finance center." Relevant director of Development &Reform and Commerce Bureau of Xi'an High-tech Zone said.

Taking this subsidy payment for example, the biggest innovation of the High-tech Zone is the compensation for risk of bad debts. It is known that before the State Council released "Financial ten", the High-tech Zone already promoted the risk-sharing policy to lower the mortgage terms of enterprises. For example, fund-raising may be obtained through intellectual property pledge. However, the High-tech Zone has begun to apply this measure since it imported Chang'an Bank sub-branch in 2009. Currently, more than 20 enterprises raise fund by intellectual property pledge. "We are now exploring the cooperation with China Minsheng Banking Co., Ltd. to bring faster financing with lower interest rate and fewer mortgages for SMEs of good credit." The director said.

In fact, in recent years, the High-tech Zone also established the service system of "One Book, One Network, and One Activity," namely, business directory of key industrial clusters in the High-tech Zone of Xi'an, Enterprise Information Network of the High-tech Zone of Xi'an, and "Small and Micro Enterprises Service Month" activities. Taking the "Small and Micro Enterprises Service Month" activity for example, the High-tech Zone takes one month in a year to enhance the services that the financial executive directors ask demands of enterprises and issue the financial policies. This year, 50 university students are employed to investigate more than 150 office buildings in the zone to know about financial demands of various enterprises. Based on this, systematic new supportive policies with great power and competitiveness will be issued by stages to increase the risk resistance capacity of the enterprises.

Solve difficulties and relieve financing difficulty of enterprises by 4 subsidies

You make the loan and I discount the interest

In order to encourage the enterprise development and reduce financing costs, the High-tech Zone discounts the interest of bank liquidity loans newly increased in this year for the enterprises in this zone. The discount interest limit is the subsidy at 20% of the benchmark interest rate of the People's Bank of China on the day of recording the enterprise loan. For industrial enterprises above the designated scale, the interest subsidy is given at 40% level.

You provide the guarantee, and I give the subsidy

Meanwhile, in order to promote the healthy development of financing guarantee industries and encourage financing guarantee institutions to positively provide enterprises in High-tech Zone with loan guarantee business, the High-tech Zone issues Temporary Methods for Subsidy to Loan Guarantee of Financing Guarantee Institutions to provide guarantee subsidy to financing guarantee institutions which providing enterprises in the High-tech Zone with loan guarantee.

You buy the insurance, I give the support

In order to promote the insurance work for technology enterprises and promote the integrative development of service economy and creative economy in the zone, the High-tech Zone issues Temporary Methods for Insurance Subsidy Fund Management of Technology Enterprises (Trial), and establishes RMB10 million of insurance subsidy fund for technology enterprises in the High-tech Zone to compensate the technology insurance fee purchased by enterprises in line with conditions.

Share the risk together

With regards to the aspect of encouraging financial institutions to provide middle and small technology enterprises with financing service, the High-tech Zone issues Management Methods for Risk Compensation Fund of Working Capital Loan of Middle and Small Technology Enterprises (Temporary), and establishes RMB100 million of risk compensation fund for working capital loan to compensate the risk of enterprise loan and guarantee in line with the industrial development direction of High-tech Zone. When the enterprise encounters the overdue risk, the High-tech Zone provides it the risk compensation for 30% of bad debts.

Which enterprises are given the supportive fund of RMB104 million?

145 technology enterprises obtain loan with discounted interest of more than RMB74.60 million.

145 technology enterprises including Shaanxi HuaJing Micro Electronic Co., Ltd. in the High-tech Zone obtain discounted interest for newly-increased liquidity at RMB74.645 million, driving bank credit fund of RMB5.31 billion and leading to the amplification factor of financial fund of 71.2 times. 6 enterprises above the designated scale including Shaanxi Guode Electric Co., Ltd. obtain at most RMB3 million of discounted interest subsidies respectively, which greatly guarantees the growth and promotes the development.

15 guarantee enterprises obtain guarantee subsidy of more than RMB27.8 million.

15 guarantee institutions including Xi'an Innovative Financing & Guarantee Co., Ltd. , obtain guarantee subsidy of more than RMB27.80 million in total, increasing by 42.5% compared to last year. RMB3.567 billion of guarantee loans is driven, increasing by 70.8% compared to last year. The amplification factor of financial fund is 128.3 times, increasing by 37.4% compared to last year. The financial guarantee subsidy fund plays a more significant role in driving and amplifying guarantee loans, which effectively reduces the guarantee fee burden of technology enterprises and promotes the allocation of guarantee resources to technology enterprises in the zone.

25 technology enterprises obtain insurance subsidy of more than RMB1.8 million.

25 enterprises including Xi'an Mechanical & Electric Institute obtain technology insurance subsidy of RMB1.8224 million. The number of enterprises with subsidy and subsidy amount increase respectively by 108.3% and 203.7% compared to last year. Nearly RMB5.6 billion of technology insurances is driven, which effectively promotes the butt joint of technology resources and insurance resources and provides powerful guarantee for innovation activities of technology enterprises in the High-tech Zone.

The enterprises with subsidy say--
A financial circulation of the High-tech Zone already has taken shape

The High-tech Zone makes efforts to promote the integration of technology and finance, making enterprises with subsidy glad in their mind.

"The High-tech Zone's supportive policies for guarantee companies and small and micro enterprises are effective in a national scale. The key point is that a fair policy platform based on marketization is established. Any guarantee company in line with the regulations will obtain the subsidy. In addition, the financing threshold for technology enterprises is reduced, leading to a benign circulation for the development of guarantee companies and the growth of small and small and micro enterprises as well as the increase of governmental taxes." Tang Ce, General Manager of Xi'an Innovative Financing & Guarantee Co., Ltd. , put it this way, "We can obtain a subsidy of more than RMB10 million based on our financing services for technology enterprises, small and micro enterprises as well as industrial enterprises. Simply in 2012, we made 160 loans for 122 enterprises. This year, we plan to complete the investment and financing of RMB1 billion. "

In recent years, Tang Ce has an obvious feeling that the credit of technology enterprises is constantly increasing while their guarantee risk is constantly decreasing. "I hope that the financial policies of the High-tech Zone can be further refined and deepened."

Li Nan, Manager of Enterprise Development Department in Shaanxi HuaJing Micro Electronic Co., Ltd. suggested that the High-tech Zone's supportive policies based on the sustainable development of enterprises should be continuous. "Our company is a manufacturing industry with a small profit. In addition to the poor external market environment from last year to now, our company has great fund demand for the upgrading of products and equipment. Therefore, we have a lot of loans and interests. From the second half year of 2011, we began to enjoy the loan interest subsidy of the High-tech Zone, which reduced our interest expense and loan pressure." Li Nan said, "Besides the policies, the High-tech Zone usually asks our demands in a one-to-one mode. In addition, it can improve the policies or quickly issue corresponding policies based on common problems faced with enterprises. This is very important for enterprises to keep growing."