The "blood" of capital goes directly to foreign trade enterprises

With shrinking orders, difficult payment collection and high production cost, financing has become an important countermeasure for foreign trade enterprises. The Executive meeting of the State Council, held on June 9, pointed out that financial institutions should be encouraged to increase credit support and pledge financing such as accounts receivable, inventory and orders, and strengthen direct lending business to small, medium and micro foreign trade enterprises by relying on large e-commerce platforms. This year's government work report also clearly stressed the need to innovate monetary policy tools that reach directly to the real economy.

What are the implications of innovative monetary policy work? Can foreign trade enterprises really benefit? With the credit policy intensive release, the answer gradually emerged.

Credit policies can help bail out companies

"According to the needs of the company's continuous production and operation, the company is expected to apply to the bank for a comprehensive credit line of 4.6 billion yuan at most this year." The plan was announced recently at the 40th meeting of the 6th board of Directors of Henan Huaying Agricultural Development Co., Ltd.

Hu Kui, deputy general manager of the company, introduced in an interview with the international Business Daily that the company is mainly engaged in the export of duck and poultry meat, and the industrial chain includes breeding, slaughtering and processing, feed, planting, food and processing of down, etc., so the company needs relatively large working capital and needs to borrow money from the bank almost every month. The coVID-19 outbreak has affected the company in terms of logistics, feeding and feeding in the short term. "We have good profitability, and now we need to get through it with loans."

Affected by the epidemic, foreign trade enterprises have suffered from shrinking orders and reduced profitability, but their labor and land rent costs are relatively high. Financial support has become a timely assistance for many foreign trade enterprises.

With that in mind, this year's government work report explicitly stressed the need to "innovate monetary policy tools that reach directly to the real economy, ensure that businesses have easy access to credit and that interest rates continue to fall"; The Executive meeting of the State Council also made specific arrangements for credit support to foreign trade enterprises.

Wen Bin, chief researcher of China Minsheng Bank, said that the monetary policy tool of innovation and direct access to the real economy could reduce the current cash flow pressure of foreign-trade enterprises and help them tide over the difficulties. In addition, some foreign trade enterprises are obviously asset-light, and the introduction of innovative credit policies can help them reduce their dependence on collateral and more easily obtain financial support from Banks. Especially for small and micro enterprises, access to credit support is conducive to increase orders, expand exports, back to the track of sound development.

Innovation policies are gaining momentum

On June 5, a matchmaking meeting was held in Chengdu, Sichuan province, to support foreign trade services and financing of entity enterprises. The matchmaking meeting attracted 93 foreign trade and entity enterprises, with an additional financing demand of nearly 400 million yuan. Among them, four key enterprises signed on-site financing and loan agreements worth 1.75 billion yuan with Bank of Communications.

Financing docking activities in support of foreign trade enterprises are being held in various places. According to incomplete statistics, similar matchmaking meetings have been held in Sichuan, Shandong, Hunan, Hubei, Jiangsu, Zhejiang, Guangxi and other places, and the considerable scale of matching funds means that monetary policy tools directly to the real economy are being promoted in a pragmatic manner.

Since entering June, credit support policy intensive release. On June 1, and the relevant department of the people's bank issued "on further strengthening guidance of micro, small and medium enterprises financial services" about further implementation phases delay to micro, small and medium enterprises loan servicing notice and on the loans to small micro enterprise credit support notice and other documents, further affect hedge outbreak, more accurate service enterprise jobs.

The people's bank governor yi gang said in an interview with the media, the People's Bank of China will take five measures to intensify monetary policy innovation, increase financial support for precision and accuracy: one is the extension of the micro, small and medium enterprises loan extended servicing policy, 2 it is to increase the intensity of small micro enterprise credit support, three is to improve government guarantee mechanism, four is to increase the bond market financing support, five is to develop the financial supply chain.

'The innovative monetary policy tools are mainly driven by two aspects: one is to support the extension of corporate loans for existing loans; Second, we will innovate credit products and tools for new credit loans and increase support for the real economy. Both of them are inclusive corporate loans, especially for small and micro foreign trade enterprises have an important role in credit support.

How big is this credit? According to the report released by Everbright Securities, the 300 billion yuan special re-lending and 1.5 trillion yuan inclusive re-lending and re-discounting launched by the central bank are all monetary policy tools that go directly to real enterprises. For the Credit loan support plan for Inclusive small and micro enterprises, the central bank will contribute 400 billion yuan, accounting for 40%, and leverage 1 trillion yuan of credit loans. The central bank will bear no credit risk, with a maturity of up to 1 year and free of interest. The actual credit scale may be larger than this.

Hu said that the extension and increase of loans are the most needed credit support policies for enterprises. If the extension does not affect the credit investigation of enterprises, then enterprises can put into production without any worries and accelerate the development of the market. With the normal operation of each link of the industrial chain, the enterprise can better repay the loan and re-enter the benign track.