Xuan Changneng: Expansion of foreign debt facilitation pilot to support cross-border financing of emerging companies

Xuan Changneng: Expansion of foreign debt facilitation pilot to support cross-border financing of emerging companies
On March 22, the State Council Office of Antiques responded to the impact of the international epidemic and maintained the stability of the financial market.Xuan Changneng, deputy director of the State Administration of Foreign Exchange, said that the foreign debt facilitation pilot will be expanded to support cross-border financing of emerging companies.Expand the pilot scope of foreign debt facilitation to Shanghai, Hubei, Guangdong and Shenzhen, etc., and allow emerging enterprises that meet certain conditions to automatically borrow foreign debt within the equivalent of USD 5 million.The following is inserted by Xuan Changneng, deputy director of the State Administration of Foreign Exchange.Since the outbreak of the New Coronary Pneumonia epidemic, the State Administration of Foreign Exchange has earnestly implemented the spirit of General Secretary Xi Jinping ‘s important speech, and in accordance with the deployment of the Central Leading Group for Response to the Epidemic Situation, under the guidance of the Financial Committee of the State Council, it has been coordinating the prevention and control of the epidemic and economic and social development.Fight the epidemic and actively support enterprises to resume production.Data show that despite the impact of the epidemic, this year, the foreign exchange market is expected to be generally stable.Here I briefly introduced two aspects of the foreign exchange support policy and the current high foreign exchange market.The foreign exchange bureau has always made epidemic prevention and control and supporting the resumption of production and production a top priority of its current work. It has listened to the demands of enterprises and other market participants, helped solve the problems encountered in foreign exchange, and increased its support for foreign exchange policies.One is to continue to make good use of the foreign exchange “green channel” policy, and actively support the prevention and control of epidemics and the resumption of production of enterprises.The second is to improve macro-prudential adjustment parameters and expand the space for enterprises to borrow foreign debt.On March 12, the People’s Bank of China and the Foreign Exchange Bureau jointly issued a document to increase the macro-prudential adjustment parameters from 1 to 1.25.After the policy adjustment, the balance of increased cross-border financing risk of the enterprise increased from 2 times to 2 times the original net assets.Five times, local institutions other than government financing platforms and real estate companies borrowed foreign debt space to further expand, which is conducive to small and medium-sized enterprises, private enterprises to better use various internal channels to raise funds.The third is to expand the pilot of foreign debt facilitation to support cross-border financing of emerging companies.Expand the pilot scope of foreign debt facilitation to Shanghai, Hubei, Guangdong and Shenzhen, etc., and allow emerging enterprises that meet certain conditions to automatically borrow foreign debt within the equivalent of USD 5 million.At the same time, the level of external debt facilitation in the Haidian Park of Zhongguancun Science City in Beijing will be further improved to better meet the needs of emerging companies in many places to use external debt funds and reduce their financial costs.The fourth is to actively use the cross-border financial blockchain technology platform to facilitate small and medium-sized enterprises to carry out trade financing.Editor Yue Caizhou

Bai Chongen: New infrastructure should grasp the rhythm and be based on effective demand

Bai Chongen: New infrastructure should grasp the rhythm and be based on effective demand
桑拿夜网讯(记者程维妙)3月22日,在“清华经管学院校友终身学习计划——‘闻道经管’校友公开课”上,谈及疫情对中国企业有哪些影响时,清华大学Bai Chongen, Chair Professor of Freeman Economics and Dean of the School of Economics and Management, said that the impact of the epidemic on Chinese enterprises has a relationship with our policies. The government has introduced a series of measures to protect enterprises, so as to budget and finance costs.Relief to the enterprise.But pay special attention to, if the epidemic lasts too long, companies may face the risk of challenge.Bai Chongen analyzed that some companies may suffer from excessive impacts on cash flow due to reduced sales, and the supply capacity of robes disappeared, affecting the supply capacity of the whole society; some enterprises have more difficulty in expanding reproduction, their ability to invest with their own funds has declined, and financial institutionsAs a result, lending expectations have also declined; some companies will be impacted by the supply chain, such as upstream companies going bankrupt or unable to expand production, causing the raw material demand of the company to be affected and thus unable to produce.Bai Chongen said that there are still some special cases where the distorted impact of cash flow may have a positive impact, which should also be considered separately.For example, overcapacity in an enterprise, even if it has not been profitable before, has always been sustained. If the impact of the epidemic causes some companies to have cash flow problems and eventually withdraws from the market, the excess capacity will be reduced, which is not a bad thing for the healthy development of the entire industry.In addition, the epidemic situation may also bring some opportunities to well-operated enterprises, some of which are conducive to the restructuring of these enterprises.Talking about the enlightenment of the epidemic to the internationalization of domestic enterprises, Bai Chongen once again mentioned that some of our enterprises’ upstream supply depends on other countries. The lesson learned from the epidemic is that we cannot rely on it to a high degree.In addition, our companies should pay attention to improving their cross-cultural management and cross-cultural communication capabilities. Sometimes this is a soft barrier. “If communication is not good, others will not accept you. Both the company and the government and the public must strengthen this aspect.Ability to make it easier for companies to go out.He said.Regarding the “new infrastructure” of recent attractions, Bai Chongen said that the dividend of “new infrastructure” was magnified under the epidemic, but it should seize a good pace.Construction should be built on the basis of effective demand, to avoid excessively rapid construction resulting in low utilization; some new infrastructure-related technologies are still developing rapidly, and rhythmic construction may allow emerging new technologies to be effectively used in new construction; If the government support is too strong and improperly designed, it will cause some enterprises to shift their focus to obtaining government support, but instead reduce the resource consumption of real innovation activities.Editor Xu Chao proofreading Chen Diyan