During the Spring Festival, in order to win the prevention and control of the epidemic and better play the role of Finance in supporting the prevention and control of the epidemic and the real economy, the epidemic action of the financial war continued. For example, in order to facilitate financial institutions and the public to handle the remittance and allocation of various funds during the Spring Festival, the peoples Bank of China has arranged to increase the single payment limit of the 7 u00d7 24-hour continuous small payment system from 1 million yuan to 500 million yuan before the festival; on January 26, the CIRC issued a document requiring all institutions to guarantee the smooth financial services and strengthen financial support for epidemic prevention and control.
Zhou Jingtong, a senior economist at the Research Institute of the Bank of China, believes that from the historical experience of the last SAS epidemic, the impact of the epidemic on Chinas economy is temporary. If the spread of pneumonia can be effectively controlled, its negative impact on the economy will gradually be eliminated. At present, the fundamentals of Chinas long-term good and high-quality economic growth have not changed, which determines that after the positive progress of epidemic prevention and control, investor tensions will be eased, and financial market volatility will be short-term, temporary and controllable. At the same time, the overall stability of Chinas financial system and the strong ability of financial institutions to resist risks also create conditions for China to cope with potential financial fluctuations.
During the Spring Festival, Hunan flavor king company contacted with the UAE medical material supplier to donate imported protective clothing, N95 masks and other anti epidemic materials. On January 27, Yiyang branch of the Bank of China learned about the foreign exchange payment demand of imported medical protection materials of Yiwang company, and immediately launched the emergency plan for cross-border remittance during the epidemic period. Under the multi-party linkage, the import purchase and payment business of 250000 US dollars was successfully completed within 20 hours.
With the increasing number of new coronavirus pneumonia cases, prevention and control of the epidemic situation has become a top priority. In this war of prevention and control of the epidemic, banks and insurance institutions responded as soon as possible to maintain the stability of the financial market. According to the incomplete sorting out of the first financial reporter, under the epidemic situation, financial institutions have taken different measures, including opening a green channel for financial services, donating to the special account for epidemic prevention or remitting the special fund for epidemic prevention free of charge; opening a green channel for credit approval, supporting the scientific research, production, purchase and sale of drugs, protective articles, medical equipment and other materials needed for epidemic prevention and control and the industrial chain Financing needs of enterprises involved in the epidemic; support normal operation of enterprises affected by the epidemic; provide insurance for medical staff.
For example, during the epidemic prevention and control period of new coronavirus pneumonia, China CITIC Bank and other relevant policies have been issued, and the operational loans of corresponding small and micro enterprises and individual businesses for epidemic prevention and control have been reduced by 0.5 percentage points based on the current interest rate.
To assist in epidemic prevention and control, as of January 29, the total donation of Bank of Communications Group has reached 29 million yuan; the emergency loan of Agricultural Development Bank of China Henan branch is 40 million yuan to support enterprises to produce medical protective equipment and meat, egg, milk and vegetable supply.
On January 30, Taikang Insurance Group announced the establishment of 100 million yuan public health and Epidemic Prevention Fund to support the construction of basic health system and epidemic prevention system; with the development of epidemic situation and the progress of prevention and treatment, Taikang Insurance decided to expand the coverage of special medical insurance to Hubei Province and continue to donate and allocate protective materials.
According to incomplete statistics, as of January 31, the total donation of national bank insurance institutions and industry associations reached 1.4 billion yuan.
The impact of the epidemic on the economy has also attracted the attention of the financial regulatory authorities. Recently, the peoples Bank of China and the China Banking and Insurance Regulatory Commission have successively issued documents to stabilize economic expectations.
On February 1, the central bank, the Ministry of finance, the China Banking Regulatory Commission, the China Securities Regulatory Commission and the foreign exchange bureau jointly issued the notice on further strengthening financial support for the prevention and control of new coronavirus infected pneumonia (hereinafter referred to as the notice), and issued 30 measures to further strengthen financial support for the prevention and control of the epidemic.
According to the notice, enterprises with great development prospects but temporary difficulties affected by the epidemic, especially small and micro enterprises, shall not be allowed to take out loans blindly, cut off loans or squeeze loans; enterprises seriously affected by the epidemic can be extended or renewed if it is difficult to repay when due; loans can be appropriately reduced We will support relevant enterprises to overcome the impact of the epidemic and other disasters by means of interest rates, increased credit loans and medium - and long-term loans.
On January 26, the CBRC issued the notice on strengthening the cooperation of financial services in the banking and insurance industry to do a good job in the prevention and control of pneumonia caused by the new coronavirus infection, which was proposed from the following five aspects: the implementation of the requirements for the prevention and control of the epidemic by the banking and insurance institutions themselves, the guarantee of smooth financial services, the opening of green channels for financial services, the strengthening of financial support for the prevention and control of the epidemic, and the financial services for the enterprises in distress Specific measures have been taken.
On January 29, the Shanghai headquarters of the peoples Bank of China issued the notice on fully supporting the coordination of epidemic prevention and control with financial services and emergency support, saying that it will increase financial support for epidemic prevention and control, establish payment service guarantee for epidemic prevention and control, establish green channel for foreign exchange policy during epidemic prevention and control, and improve financial services and safety guarantee during epidemic prevention and control. Support the credit demand related to epidemic prevention and control and social livelihood; support the bond issuance demand of financial institutions and related enterprises; continue to do a good job in the online filing of institutional investors in the interbank bond market, and effectively use monetary policy tools to strengthen liquidity support.
Zhou Jingtong believed that the supervision put forward further work requirements for increasing monetary and credit support, reasonably dispatching financial resources, maintaining the smooth and orderly operation of the financial market, which is a timely move for the financial sector to help win the prevention and control of the epidemic. In the future, we should pay more attention to the formation of financial support synergy, take the prevention and resolution of the risk of cash flow fracture of small and medium-sized enterprises in key epidemic areas as the top priority, and help the financial market run smoothly and win the prevention and control of the epidemic.
Suggestions on increasing credit support for small and medium-sized enterprises
The continuous voice of the top regulators has injected a boost into the real economy and financial markets.
After the opening of the financial market on February 3, the peoples Bank of China will provide sufficient liquidity, increase the intensity of counter cyclical regulation, maintain the reasonable and sufficient liquidity of the financial market, and maintain the stable operation of interest rates in the money market. On February 1, pan Gongsheng, deputy governor of the peoples Bank of China, said.
The financial market is affected by many factors, and it is normal for it to fluctuate under the impact of certain risk factors, which also conforms to the financial law. The impact of epidemic events on China s financial market is no exception, but this impact must be short-term and temporary, because it is the fundamentals of economic and financial development that determine the prospect of a country s financial market. After a long period of unremitting reform and opening-up and strengthened supervision, especially in the past two years, the first battle to prevent and resolve financial risks has been won. The resilience of financial institutions and financial markets has been significantly enhanced, and their ability to resist shocks has been greatly improved. On the same day, Cao Yu, vice chairman of the CBRC, pointed out.
However, as the trend of the epidemic is still an important variable leading the operation of the financial market, the corresponding extension of the Spring Festival holiday has also brought great challenges to Chinas macroeconomic operation, business operation and employment prospects.
Many experts believe that in the future, the financial risks of some regions and industries will rise, and the unstable factors of financial market operation will increase, so measures should be taken to prevent the excessive fluctuation of financial market.
Under the outbreak, the consumption and service industries will bear the brunt. As the most important part of service industry, small and medium-sized enterprises, especially labor-intensive small and medium-sized service enterprises, are more affected by the epidemic.
At present, the driving force and structure of Chinas economic growth have changed significantly. The contribution rate of the tertiary industry to Chinas economic growth has increased from 39% in 2003 (SARS period) to 59.4% in 2019.
Zhou Jingtong believes, on the one hand, many production and business economic activities are affected, and cash flow may have problems. In order to prevent the spread of the epidemic, the Spring Festival holiday was extended for three days, and the resumption of work in some provinces and cities was further postponed for one week. The normal business plan of the enterprise was facing adjustment. On the other hand, enterprises also face the rigid payment cost of rent, wage, interest and other expenses. The cash flow gap of income and expenditure makes many small and medium-sized enterprises face pressure in operation, especially in the labor-intensive fields such as catering, tourism, retail, manufacturing and so on.
Cheng Shi, chief economist of ICBC international, predicted that after the outbreak, there would be a long difficult to rework and difficult to start problems, and a longer production cycle, which would restrict the ability and willingness of export enterprises to undertake new orders. Therefore, the export industry chain, especially the employment pressure of small and medium-sized enterprises, is expected to lag in the second half of the year.
Zhou Jingtong suggested that more special support should be given to prevent and resolve the risk of cash flow disruption in small and medium-sized enterprises. Banks are encouraged to consider adopting loan discount and special loan mechanism to solve the difficulties of business turnover in a certain period of time for enterprises with difficulties in business stagnation due to the epidemic.
In terms of credit support, the circular pointed out that the peoples Bank of China continues to strengthen the expected guidance, provide sufficient liquidity through various monetary policy tools such as open market operation, standing lending facilities, refinancing, rediscount, etc., maintain reasonable and sufficient liquidity in the financial market, and maintain the stable operation of interest rates in the currency market.
In 2019, the central bank promoted the reform of the formation mechanism of LPR interest rate, dredged the transmission channels of monetary policy, and guided financial institutions to reduce LPR interest rate by reducing the standard and policy interest rate. Thanks to last years adjustment, the financial system has been prepared for further downward LPR, thus providing a driving space for monetary policy.
Affected by the epidemic situation, the credit demand in medical, health, health, residents necessities and other fields closely related to the epidemic prevention and control is urgent and needs credit support. Wen bin, chief researcher of China Minsheng Bank, suggested that financial institutions should be encouraged to increase credit investment according to the development trend of the epidemic and the needs of economic growth. At the same time, it is suggested that the central bank reduce the policy interest rate in a timely manner and generally, and increase the operation of the open market. The central bank should use MLF, SLF, refinancing, rediscount and other monetary policy tools to maintain a reasonable and sufficient market liquidity, and further guide the downward trend of LPR interest rate, so as to effectively reduce the burden of enterprises. Wen Bin said. According to Cheng Shis prediction, in 2020, the total amount of tools such as comprehensive reduction of standards and LPR interest rate reduction are expected to move forward in part, and structural tools are expected to focus on epidemic areas, service industries and small and medium-sized enterprises. Under the condition of rational use of policy space, Chinas economic growth in 2020 is expected to grow at a low speed, and the long-term trend of stable growth will not be shaken. Source: First Financial Editor: Guo Chenqi, nbj9931
Affected by the epidemic situation, the credit demand in medical, health, health, residents necessities and other fields closely related to the epidemic prevention and control is urgent and needs credit support. Wen bin, chief researcher of China Minsheng Bank, suggested that financial institutions should be encouraged to increase credit investment according to the development trend of the epidemic and the needs of economic growth. At the same time, it is suggested that the central bank reduce the policy interest rate in a timely manner and generally, and increase the operation of the open market. The central bank should use MLF, SLF, refinancing, rediscount and other monetary policy tools to maintain a reasonable and sufficient market liquidity, and further guide the downward trend of LPR interest rate, so as to effectively reduce the burden of enterprises. Wen Bin said.
According to Cheng Shis prediction, in 2020, the total amount of tools such as comprehensive reduction of standards and LPR interest rate reduction are expected to move forward in part, and structural tools are expected to focus on epidemic areas, service industries and small and medium-sized enterprises. Under the condition of rational use of policy space, Chinas economic growth in 2020 is expected to grow at a low speed, and the long-term trend of stable growth will not be shaken.