The General Office of the China Banking and Insurance Regulatory Commission ("CBIRC") has recently issued the Circular on Enhancing Financial Services in Favor of Coordinated Resumption of Work and Production for the Industry Chain (the "Circular").
The Circular rolls out six measures, including: 1. increasing financial support for enterprises playing a key role in the industry chain; 2. optimizing financial services for enterprises on the upstream and downstream sides of the industry chain; 3. strengthening financial support for the coordinated development of the global industry chain; 4. elevating the science and technology level of financial services regarding the industry chain; 5. improving the assessment, incentives and risk control mechanisms for financial institutions in the banking sector; and 6. enhancing support for insurance and guarantee services. The Circular states that key enterprises are supported in seeking financing through credit loans, bonds or other means to reduce occupation of funds related to upstream and downstream enterprises, which could help small- and medium-sized enterprises (SMEs) and micro firms on the upstream and downstream sides of the industry chain resolve liquidity shortage and other problems. The Circular also expressly states that credit support for SMEs and micro firms on the upstream and downstream sides of the industry chain will be increased by means of accounts receivable financing, order financing, advance payment financing, inventory and warehouse receipt pledge financing, or otherwise.