Pilot expansion of cross-border financing facilitation

Cross border financing channels for small, medium and micro high-tech enterprises and "specialized, special and new" enterprises have been broadened. Recently, the State Administration of foreign exchange issued the notice on supporting high-tech and "specialized, special and new" enterprises to carry out cross-border financing facilitation pilot, deciding to further expand the pilot, facilitate more high-tech and "specialized, special and new" enterprises to independently borrow foreign debt within a certain amount, and help enterprises speed up innovation and development.
The main contents of the notice include: first, expand the scope of pilot areas from the specific areas of 9 provinces (cities) in the early stage to all areas of 17 provinces (cities); Second, expand the main types of pilot projects, and add "specialized and special new" enterprises on the basis of the pilot projects of high-tech enterprises; Third, the pilot quota was increased. The facilitation quota for high-tech and "specialized, special and new" enterprises in the nine provinces (cities) and regions that have carried out the pilot was raised to the equivalent of 10million US dollars.
High and new technology and "specialized and special new" enterprises are important forces for innovation driven development. "Further expand the pilot of cross-border financing facilitation, so that enterprises can make better use of two markets and two resources, broaden financing channels for small, medium and micro innovative enterprises, and reduce enterprise financing costs, which will help stimulate the vitality of small, medium and micro enterprises and other micro market players, stabilize employment, and stabilize the overall economic market." Zhoumaohua, a macro researcher of the financial market department of Everbright Bank, said that for "specialized, special and new" enterprises, the pilot expansion has widened the financing channels of enterprises, and will promote small, medium and micro enterprises to invest more funds in scientific and technological innovation R & D and production, enhance their own innovative R & D capabilities, and promote the development and growth of scientific and technological innovation enterprises in the pilot area. At the same time, due to the substantial expansion of the pilot provinces, more "specialized, special and new" enterprises in the provinces will benefit, which is conducive to reducing the financing costs of enterprises.
It is understood that for enterprises to borrow foreign debt, the regulatory authorities generally adopt macro Prudential Management. One of the most important parameters is net assets. High tech small, medium and micro enterprises and "specialized, special and new" enterprises generally have few net assets. If they are managed in accordance with macro prudence, it is difficult to raise funds from abroad. Therefore, the regulatory authorities specially issued the notice, which is not calculated according to the net assets of these enterprises, but gives a certain amount, within which enterprises can independently borrow foreign debt.
It is worth noting that the safe has stipulated the qualifications of pilot enterprises. The enterprise shall be a non-financial enterprise (excluding real estate enterprises and local government financing platform enterprises) registered in the pilot area, established for more than one year and with actual business activities, and a high-tech or "specialized and special" enterprise certified by the relevant national or local departments, and has no record of foreign exchange administrative punishment in the past two years.
"With regard to the facilitation of foreign debt, we also simplified the management of foreign debt accounts. From April to May this year, the number of accounts opened fell by 40% year-on-year, effectively saving enterprise management costs." Wangchunying, deputy director and spokesman of safe, said that next, safe will guide the pilot areas to implement policies and measures, improve the facilitation of cross-border investment and financing, continue to optimize the business environment, support the high-quality development of the real economy, and help stabilize the macro-economy.