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Shanghai Quickens Pace to Establish Financing Credit Guaranty System
Shanghai will increase its pace in setting up a financing credit guaranty system in the 21st century, Chen Liangyu, the city's deputy mayor, said at the recent 2000 China Guaranty Forum.
The system aims to create a sound investment and financial environment in Shanghai, to better regulate and channel flows of social capital and to support the development of medium and small-sized enterprises, especially technological-type small enterprises, the deputy mayor said.
Chen said Shanghai's goal to boost its competitiveness was formulated in the draft Tenth Five-Year Plan (2001-2005). One of the key tasks is to reform the investment and finance system, to set up a market-oriented system. The city will take measures to foster non-governmental broker groups and financial service institutions, encourage non-governmental investment and loosen restrictions on private capital's entrance into certain fields, he added.
To overcome the difficulties faced by medium and small-sized enterprises in investing and financing, the city will accelerate the establishment of a market-led credit guaranty system, the deputy mayor said.
The city will first improve the enterprises' credit-rating system, integrate the handling of credit guarantee for loans for small enterprises with financial and accounting management and the taxpaying credit-rating management, according to the deputy mayor.
The city will also establish a guaranty system characterized by multi-channel capital resources, multi-organization's participation and multi-layer structure.
Chen also said that the city will adopt a policy to encourage non-governmental capital to set up reciprocal credit guaranty funds for loans for small enterprises.
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