New financing solutions for “specialized and new" enterprises with pilot cross-border financing
Chongqing has been pursuing a number of early and pilot policies from the State Administration of Foreign Exchange, and especially to explore solutions for financing collateral shortage for small and medium high-tech enterprises and "specialized and new" enterprises to help enterprises accelerate innovation and development.
In 2021, Chongqing launched the first batch of pilot projects for cross-border financing facilitation for high-tech enterprises in China. This included up to 5 million USD in financing for innovative high-tech enterprises in pilot areas such as the Chongqing Pilot Free Trade Zone, Liangjiang New Area, national high-tech zone and economic and technological development zone.
In June 2022, the pilot scheme was upgraded to include eligible high-tech and "specialized and new" enterprises throughout Chongqing, allowing them to borrow foreign debt up to 10 million USD.
The State Administration of Foreign Exchange Chongqing Foreign Exchange Management Department is coordinating to ensure government and bank risk-sharing, and deliver financial incentives. It is also guiding banks to build a special "financing pool", develop cross-border loans for science and technology, and other products to continue to help enterprises to increase credit, broaden overseas financing channels, and reduce comprehensive financing costs.
Data from the Chongqing Foreign Exchange Management Department shows that, as of the end of July 2022, the department has supported 12 high-tech and "specialized and new" enterprises in Chongqing to obtain cross-border financing facilitation of nearly 37 million USD.
Chongqing will now guide the Foreign Exchange Bureau and banks to implement relevant policies and measures, improve the level of cross-border financing facilitation, continue to optimize the business environment, provide further financial support for high-tech and 'specialized and new' enterprise innovation, and help the high-quality development of the real economy.
Source: Chongqing Daily