Dongguan InvestmentUpdated Apr/2/2022 18:52pm
Editor’s Note:
To coordinate epidemic prevention and control with economic and social development at the national, provincial, and municipal levels, Dongguan Municipal Financial Bureau, together with PBOC Dongguan Central Sub-branch and the Dongguan Office of the China Banking and Insurance Regulatory Commission, issued the Notice of Dongguan on Strengthening Financial Service for the Prevention and Control of the COVID-19 and Social and Economic Development (hereinafter referred to as the Notice). The Notice guides the financial institutions to boost financial services and ensure the stability of the industry supply chain, to help mitigate the impact of the epidemic through the Eight Insurance. In this context, South Plus Dongguan Finance Channel has launched a series of reports on finance stabilizing, assisting, benefiting, and protecting enterprises, demonstrating the financial sector’s role in epidemic prevention and control as well as economic and social development in Dongguan.
Previously, it was difficult for atechnology company in Dongguan, also known as one of the national-level technologically advanced “Little Giant” enterprises to resume production quickly due to a lack of raw materials during the pandemic time. When they are in trouble, ICBC Dongguan Branch provides financial assistance such as Corporate E-Banking, bill payment and receivable, and ICBC E-Discount. It also issues a working capital loan of 13 million yuan for enterprise material purchases when resuming work and production after the holiday or while operating at full capacity. An official of ICBC Dongguan Branch stated, “We have extended special support against the epidemic to enterprises citywide, and have granted credit loans of more than 100 billion yuan to 43 risk compensation enterprises in total since the outbreak. Meanwhile, we are granting loans at favorable rates of interest for over 600 micro and small enterprises to help them get through their difficulties.”
As the pandemic has gradually stabilized, enterprises should not only strictly prevent and control the pandemic but also unleash the productive force to maintain the smooth operation of the economy and prepare for the stabilization in the 1st quarter. Finance is the lifeblood of the economy.To ensure the economic stabilization in the 1st quarter, the banking industry in Dongguan focuses on not only pandemic prevention and control but also on financial service to promote a healthy start of the economy through the steady increase level of financial support and ongoing financial service.
Allow more financial resources to national, provincial, and municipal major projects
After a short break, numerous provincial and municipal major projects have resumed, including the Banking industry in Dongguan, which plays an important role in allowing financial resources to flow and activating the city's vitality.
Bank of Dongguan (BOD) has contributed to various projects in the construction of transportation, expressway, flow interceptors network, water supply systems, water environment governance, urban regeneration, and area comprehensive development. Now, over 162 municipal major projects in BOD have been approved, among which 94 have been expended, with a cumulative credit line of 60.12 billion yuan and a total loan balance of 13.448 billion yuan.
An official of BOD said, “Following the national strategy for Guangdong-Hong Kong-Macao Greater Bay Area (GBA) construction, we pay special emphasis to credit funds for the construction projects in the GBA and actively cooperates with local government departments in the investigation and analysis of the construction and financing needs of infrastructure projects. We use ad hoc measures for provincial and municipal major projects, assign tasks to staff on a list-based approach basis, prioritize credit lines, establish green channels for loans, and provide support to loan approval and release at various stages while providing relatively favorable loan interest rates to ensure major projects credit services.”
Likewise, the China Construction Bank (CCB) Dongguan Branch also supports national development strategies, focusing on infrastructure projects to ensure stability on six fronts and maintain security in six areas. Meanwhile, it also launches special financial services with Dongguan Development & Reform Bureau and Dongguan Municipal Financial Bureau, offering comprehensive financial services of more than 50 billion yuan in terms of infrastructure construction, urban regeneration, industrial park construction, and enterprise technological upgrading and transformation, etc. By March 20, CCB Dongguan Branch had granted credit in transit to nine major projects in seven new infrastructure areas such as 5G infrastructure, totaling 4 billion yuan.
The Bank of China (BOC)Dongguan Branch also vigorously promotes the construction of major projects. As of February this year, BOC Dongguan Branch has served more than 2,400 credit customers in the manufacturing industry, with a credit balance of 34 billion yuan; approved loans for major construction infrastructure projects in the city totaled 14.3 billion yuan, with a credit balance of 5.3 billion yuan. A total of 229 million yuan has been invested so far this year; three urban renewal projects have been landed, totaling 5.6 billion yuan in approved loans and 1.808 billion yuan in total investment. The balance of green credit loans reaches 6.139 billion yuan, an increase of 29% year-on-year.
At present, the pandemic continues to rage around the world, and the tasks of economic and social development in China are arduous. To face transformations never seen in a century and the pandemic, to promote sound economic and social development, we should focus on national major strategies, keep agriculture stable, develop agriculture, rural areas, and farmers, achieving the strategy of rural revitalization. Under the guidance of Dongguan Municipal Financial Bureau, PBOC Dongguan Central Sub-branch, and the Dongguan Office of the China Banking and Insurance Regulatory Commission, Dongguan financial sector sets out various policies to allow more financial resources for rural revitalization, promoting the continuous improvement of financial service capacity and level.
PSBC in Dongguan issued the Implementation of Serving Rural Revitalization in the 14th Five-Year Plan Period, establishing a digital ecological bank to serve rural revitalization, actively and continuously promoting the transformation of the financial business from serving “Small farmers” to “Rural, Agriculture and Farmers”, and fully supporting the comprehensive promotion of rural revitalization. It’s reported that the Postal Savings Bank of China Dongguan Branch assured a minimum yearly investment of 1 billion yuan in agriculture-related loans.
During the period of epidemic prevention and control, the Agricultural Bank of China (ABC) Dongguan Branchgave full support to ensure sufficient grain, food, and fruit supplies. As of March 15, the balance of agriculture-related loans of ABC Dongguan Branch was nearly 16 billion yuan, an increase of 5% over the beginning of the year; among them, the loan balance of agricultural leading enterprise topped 500 million yuan, up 15%.
Carbon peak and carbon neutrality are important goals for the next phase of our development. Nowadays, financial institutions in Dongguan are actively playing their respective strengths, contributing to the realization of carbon peaks and carbon neutrality. In this context, ICBC Dongguan Branch has innovated green financial products and services, launching special green credit products such as water-control loans, carbon emission allowance mortgage credit, photovoltaic power generation loans, and solar equipment instalments to meet the capital needs of green industry customers in all aspects; and optimize the green credit review process. Moreover, it has also created green channels for green credit approval and is continuously optimizing and improving the efficiency of project declaration and approval.
Research and develop the empowerment of exclusive product “sci-tech innovation + advanced manufacturing”
Under the impact of the pandemic, the serious frictions in international relations, and the continued pressure on pillar industries, Dongguan suggests focusing on “Sci-Tech Innovation + Advanced Manufacturing”, striving to realize the high-quality development in the economy at the level of trillion yuan.
During the lockdown in Hengli, Dongguan, a technologically advanced enterprise in the semiconductor field had trouble with financial flows. ICBC Dongguan Branch opened a special green channel andprovided special approval while taking preventive measures against Covid-19. A working capital loan of 3 million yuan was issued on March 29, 2022, to pay upstream suppliers for goods to ease the pressure on flows.
The development of technologically advanced enterprises is not only an important initiative of the state to promote the high-quality development of small and medium-sized enterprises but also an important part of the strategy of invigorating China through the development of science and education. To increase the financial support for technologically advanced small and medium-sized enterprises, solving the difficulties in enterprise financing is also an important path to achieving the sustainable and healthy development of China's economy.
Recently, the Industry and Information Technology Bureau of Dongguan Municipality,Dongguan Science and Technology Finance Group Co., Ltd., and ICBC Dongguan Branch jointly issued a notice on the implementation to foster the development of exclusive financing services for the technologically advanced enterprises in Dongguan City, carrying out triangular strategic cooperation. At the same time, the industry and information departments in the towns and sub-districts are required to arrange handover of work, effectively organize and implement the promotion of exclusive financing services, and establish the mechanism to link municipalities, banks, and enterprises, working together to solve the financing problems of enterprises.
According to the program, ICBC Dongguan Branch promises to launch a series of exclusive financial products with a total credit line of not less than 50 billion yuan for technologically advanced enterprise customers within 5 years, including a maximum of 30 million yuan for a small and micro enterprise and 80 million yuan for a medium-sized enterprise, with a maximum loan term of 10 years, among which a 1-year loan interest rate will not exceed 1-year LPR + 30BP, and a 3-year loan interest rate will not exceed 1-year LPR + 50BP, providing exclusive financial services with a low-interest rate, long term, fast approval, and reduced fees.
This is also the vivid practice of ICBC Dongguan Branch’s “Sci-Tech Innovation and Advanced Manufacturing”. The 14th Five-Year Plan of Dongguan’s financial sector clearly defines the strategic objectives, actions, and safeguards for the next five years to enable Dongguan’s financial industry to speed up the development of “Sci-Tech Innovation and Advanced Manufacturing”. The idea of “One goal, four positionings, six measures, six actions” in Dongguan will contribute to Guangdong, a strong financial province. We are striving towards reaching an added value of 90 billion yuan in the financial sector, accounting for about 7% of GDP by the end of the 14th Five-Year Plan.
This year, ICBCDongguan Branch has actively formulated its corporate credit business development plan around the dual focus of “Sci-Tech Innovation + Advanced Manufacturing” and the main objectives of the city’s development in the next five years. For key enterprises in “technologically advanced”, “Kunpeng Plan”, “Doubling Growth Plan”, etc., marketing responsibilities are implemented, credit financing service plans are customized for enterprise needs, and a package of financial services for the development of the city’s four strategic platforms and the construction of seven strategic emerging industry bases are provided, etc. For technologically advanced enterprises, a special mode of debt-equity combination financing is provided to offer equity-debt financial service in PLM.
For entrepreneurs, R&D and innovation institutions, and advanced manufacturing industries, several low-interest loans are offered by DRC Bank, such as excellent unit loan, mortgage loan, science insurance loan, employment ensurance.
Among them, the “Science Insurance Loan” is jointly launched by DRC Bank, Dongguan Science and Technology Bureau, and PICC Dongguan Branch, mainly for high-tech enterprises and science and technology-based SMEs in Dongguan. Through the innovative introduction of a guaranteed insurance model and tailor-made credit service plan, loans of up to 3 million yuan have been provided to small and micro technology-based enterprises with light assets and no collateral, with a loan term of 1 year and flexible repayment methods, which can effectively solve the capital needs of enterprises in the short term.
On Dec 16, 2021, DRC Bank successfully launched the first business of “Science Insurance Loan”. A health technology company successfully obtained a loan of 2 million yuan for production and operation, which effectively solve the financing problem.
For those advanced manufacturing enterprises and groups, BOD has launched special service programs to provide professional and efficient financial support for their daily operation, expansion and reproduction, transformation, and upgrading needs. Now, several online services have been launched, and the loan can be applied, approved, and released on the same day. In addition, focusing on Sci-Tech Innovation and Advanced Manufacturing, BOD further increase the support for Sci-tech enterprises and promote over 10 standardized and online products, such as loan for promising innovation enterprise, double growth loan, e-loan for sci-tech enterprises to meet the financing needs of their financing needs in different growth periods.
Promote the “Kunpeng Plan” for the development of Dongguan
On March 23rd, Guangdong Dtech Technology Co., Ltd (Dtech) succeeded in its IPO according to the Shenzhen Stock Exchange’s 14th Review Conference in 2022, which means one more listed company in Dongguan.
Last year, 13companies went public or got IPO approved in Dongguan, making its A-share companies ranked first in the prefecture-level cities in Guangdong. By the end of December last year, there were 45 A-share listed enterprises in Dongguan, making it the city with the most A-share listed enterprises in the prefecture-level cities in Guangdong. With 21 overseas-listed enterprises, Dongguan was home to 66 listed enterprises in total. With their sound development, the total market value of listed enterprises in Dongguan exceeded 600 billion yuan, an increase of nearly 150 billion yuan during the year, of which that of A-shares was nearly 450 billion yuan.
To increase its listed enterprises, Dongguan issued the3-Year Kunpeng Plan of Development of Enterprise listing (2021-2023), trying to promote the listing of over 100 enterprises, with the highest reward of up to 26 million yuan. A few days ago, in order to promote Kunpeng Plan, Dongguan Municipal People's Government launched the 2022’s Implementation Plan for Deepening Reforms to Streamline Administration, Delegate Powers, Improve Regulation, and Strengthen Services on Constantly Optimizing the Business Environment, trying to have more than 10 new listed or IPO approved companies in 2022 and striving to have listed companies in all towns, sub-districts and industrial parks within three years. Next, Dongguan Municipal Financial Bureau, together with PBOC Dongguan Central Sub-branch, and the Dongguan Office of the China Banking and Insurance Regulatory Commission, issued the Notice of Dongguan on Strengthening Financial Service for the Prevention and Control of the COVID-19 and Social and Economic Development, to support securities traders and venture capital investment organization develop Kunpeng Plan, helping Dongguan build a sound listed environment and increasing the proportion of direct financing. Moreover, financial institutions are encouraged to help Dongguan enterprises issue bond financing to broaden financing channels.
Various government departments have introduced relevant policies and initiatives to protect the listed and to-be-listed enterprises. On March 31st, the launching ceremony of Kunpeng Starfire Sci-Tech Innovation Enterprises Financing Roadshow & 2022’s 1st Nancheng Special Event was held successfully held in Dongguan Starfire Roadshow Center through offline roadshow and live stream. It is understood that the roadshow platform is established by Dongguan Securities Co., Ltd, Dongguan Science And Technology Innovation Finance Group Co., Ltd, Shenzhen Stock Exchange Dongguan Branch, and V-Next, under the guidance of Dongguan Municipal Financial Bureau and Shenzhen Securities Information Co., Ltd., aiming to build a window for Dongguan’s high-quality sci-tech innovation enterprises to showcase their projects to the capital market, achieving efficient financing and promoting more capital empowerment and appreciation in Dongguan through sound interaction between industry and capital. The platform will host public investment and financing roadshow matchmaking activities in the form of town sessions, industry sessions, and institutional sessions.
Now, Dongguan is focusing on sci-tech innovation and advanced manufacturing, and blowing a new trumpet to strive to write a new chapter of modernization as its GDP has exceeds one trillion yuan and its population reached ten million. The official launching of Kunpeng Starfire is not only an important initiative for the development of the real economy but also a rare opportunity for enterprises to enter the fast lane of the capital market, which will surely guide and attract more high-end resources to Dongguan.
“Kunpeng Starfire is our new grip to implement the development plan of the municipal party committee and government, and can enhance the quality and efficiency of serving the real economy,” says Chen Zhaoxing, Secretary of the Party Committee and Chairman of Dongguan Securities.
As a leading local securities company, Dongguan Securities actively responds to the deployment of the Kunpeng Plan, putting the Dongguan business as a priority to comprehensively enhance the capital market here and help local enterprises to go public.
First, Dongguan Securities and Dongguan Municipal Financial Bureau work together to set up a series of listing service activities for Dongguan enterprises, arranging senior professionals to teach new capital market policies, provide on-site guidance and answer enterprises’ questions, offering forward-looking, whole-process and class-oriented services for Dongguan enterprises. Since this year, seven training sessions have been conducted offline for staff across Dongguan enterprises, covering several topics such as corporate listing, corporate governance, and capital market dynamics.
Second, Dongguan Securities visited over 500 listed reserve enterprises and Double Growth Plan enterprises in batches and by focus to establish a liaison mechanism to respond to their needs promptly, while actively contacting the economic development bureaus of each town to understand the enterprises’ situation and to select high-quality enterprises for signing.
Since 2021, Dongguan Securities has signed 38 IPO projects and successfully sponsored 3 Dongguan-based enterprises to go public, including Shengyi Electronics Co., Ltd, Greenway and Yiheda, raising a total of 3.280 billion yuan. Shengyi IPO project is the first successful case of an A-share spin-off listed company in China, and the Yiheda IPO project is the first A-share one-stop supply platform for automation parts in China, making their contribution to building Dongguan capital market and promoting financial better serve the development of the real economy, etc.
While preventing andcontrolling the pandemic, Dongguan’s financial industry not only ensures that financial services to the real economy and people’s livelihood are kept in a sound form but also promotes the listing of enterprises through Kunpeng Plan to solve the problem of direct financing and help them speed up in development.
Source: South Plus
