The current technological era, similar to the 1930s and 1970s, is the end of the old technology cycle and the eve of the introduction of new technology cycle. The gradual and asymptotic technological cycle is an important background for the global development of new economy, and it will also bring profound changes to the way of financial services. Ba Shusong, chief economist of the China Banking Association, said recently at a symposium on financial support for technological and innovative enterprises held by the China Banking Association and the Bank of Xi'an.
China's economy is in an important period of transformation between the old and the new, and the new economy represented by science and technology innovation enterprises is still in the initial stage of development. As we all know, unlike traditional manufacturing enterprises, tangible assets such as plant equipment, land reserve and so on can be used as pledge. Most of the venture capital enterprises belong to light assets. The traditional bank pledge loan is not suitable for such enterprises. Therefore, it is imperative to innovate the mode of financial service venture capital. From the current progress, both direct financing and indirect financing are experiencing changes in supply patterns.
Ba Shusong believes that at present, China's diversified and multi-level investment and financing mechanism is not perfect, which has formed certain constraints on the development of China's new economic enterprises. There are many restrictions on new economic enterprises'access to bank credit. Specifically, there are many uncertainties and particularities in new technologies and their innovative modes, which are not suitable for traditional bank valuation methods. Secondly, the characteristics of light assets determine that it is not easy to provide collateral. Thirdly, the profit model and cash flow are often unstable at specific stages. Fourthly, the existing legal provisions of funds Financial institutions require more fixed interest rates for credit support to high-tech and science-based enterprises, that is, the income is fixed, and can not achieve high returns relative to high risks.
"From the experience of developed countries, the capital market is the cradle of scientific and technological innovation, and the second is the capital market. Some scientific and technological enterprises in Europe and the United States basically rely on a large amount of capital market investment to promote their development. At present, the focus of global stock exchanges has shifted to the new economy, and China's science and technology innovation board is just in time. Ba Shusong said.
For China, although direct financing represented by capital market will play the most important role in the process of the new economy's growth in the future, because the current financial system in China is still dominated by indirect financing led by banks, the adjustment of the financial system is not overnight, which requires indirect financing innovation to meet the financing needs of science and technology enterprises. Pan Guangwei, the full-time vice president of China Banking Association, said that banking industry, as the "aorta" of China's financial industry, has been changing its service mode and innovating financing mode in recent years. Innovative financial service modes such as "investment-loan linkage", "equity pledge", "intellectual property pledge", "equity investment fund" and "science and technology achievement guidance fund" have been piloted to provide sustainable financial service for science and technology enterprises. Financial support has played an important role in alleviating the difficulty of financing for private small and micro enterprises and supporting the development of scientific and technological enterprises.
From the point of view of credit structure, China has achieved the goal of "two increases" in small and micro loans. At the end of the first quarter of 2019, the loan balance of inclusive small and micro enterprises increased by 16.85% compared with the beginning of the year, 12.4 percentage points higher than the growth rate of various loan balances. At the same time, further reduce the financing cost of small and micro enterprises, in the first quarter of 2019, the lending interest rate of new universal small and micro enterprises was 6.87%, which was 0.52 percentage points lower than that of the whole year of 2018. More importantly, by the end of January this year, the medium-term and long-term loans of high-tech manufacturing industry have accelerated significantly, and the balance of medium-term and long-term loans of high-tech manufacturing industry has increased by 37% year on year.
In the view of Wei Gejun, president of Xi'an Branch of the Central Bank, in addition to developing a diversified financing structure, a sound financial organization system is the foundation, and the whole life cycle of financial services is the core. In the aspect of financial organization system, it includes promoting financial institutions to set up science and technology credit monopoly institutions and establishing a guarantee system for the deep integration of science and technology and finance. Through the coordination of financial policy and fiscal policy, we can leverage financial resources investment by using various means such as loans, re-loans, rediscounts, risk compensation, incentives and subsidies. To provide targeted financial services around the development characteristics of different life cycles of enterprises, enterprises in gestation and initial stage should have the intervention support of industrial funds and venture capital institutions embodying the principles of risk-sharing and benefit-sharing; for enterprises entering growth and maturity stage, they should be provided through the design of issuance of creditor's rights, trust plan and public listing, Financial services.
In addition, Wei Gejun stressed that while promoting the integration of Finance and technology, we should adhere to the concept of paying equal attention to financial innovation and risk prevention, and establishes a risk prevention system compatible with scientific finance. For example, promote the use of insurance, securitization and other market means to prevent financing risks. For science and technology start-ups in the transition period, we should encourage them to rediscover the market value of scientific and technological assets by means of debt-to-equity swap, merger and acquisition, and restructure, so as to prevent financing risks in a market-oriented way.