Wang Yiming, vice chairman of the China Center for International Economic Exchanges: Digital inclusive finance still faces some constraints in supporting the financing of small and medium-sized enterprises

Financial Circle Network September 10 news Initiated by the China Association of Small and Medium-sized Enterprises, jointly organized by the China Banking Association and the China Futures Association, the "Ninth China SME Investment and Financing Fair" was held in Beijing on September 10. Wang Yiming, vice chairman of the China Center for International Economic Exchanges, member of the Monetary Policy Committee of the Chinese Bank, and former deputy director of the Development Research Center of the State Council, attended the conference and delivered a speech.

Wang Yiming pointed out that small and medium-sized enterprises are the new force of China's economic development and an indispensable force for promoting high-quality economic development. Small and medium-sized enterprises contribute more than 50% of China's tax revenue, more than 60% of GDP, more than 70% of technological innovation, more than 80% of urban employment, and more than 90% of the number of market entities.

Wang Yiming said that in recent years, China has carried out a lot of exploration and practice in solving the problem of financing difficulties and expensive financing for small and medium-sized enterprises, and has achieved fruitful results, but the financing of small and medium-sized enterprises still faces many problems.

First of all, most of the small and medium-sized enterprises are at the end of the industrial chain, and the resistance to external shocks is weak, which increases the financing risk premium of small and medium-sized enterprises. Secondly, compared with large enterprises, the financial information of small and micro enterprises is not standard and standardized, the publicly disclosed financial information is limited, and it is difficult for banks to accurately evaluate the credit of small and micro enterprises, so information asymmetry reduces the availability of financing for small and medium-sized enterprises. In addition, the financing needs of small and medium-sized enterprises have the characteristics of small scale and high frequency, which makes the cost of net worth investigation and post-event monitoring operations of banks increase significantly, which in turn leads to higher financing costs for small and micro enterprises.

In the short term, since last year, the central government has increased the counter-cyclical adjustment of macroeconomic regulation and control, issued a number of policies, and supported the financing of small and medium-sized enterprises, which effectively supported the stable recovery of the real economy and created conditions for achieving 2.3% economic growth last year.

In the medium and long term, China is further promoting the structural reform of the financial supply side, building a long-term mechanism for policy support, and constantly improving the financing system for small and medium-sized enterprises. Strive to improve the financing support policies for the whole life cycle of small and medium-sized enterprises, build a long-term mechanism for banks to dare to lend, willing to lend, be able to lend, and preferential loans, and constantly improve the credit loans, medium- and long-term loans, and supporting mechanisms for pledge financing for small and medium-sized enterprises.

At the same time, Wang Yiming believes that solving the financing problems of small and medium-sized enterprises is inseparable from the support of scientific and technological means, the new crown epidemic has spawned digital inclusive finance, and financial institutions have strengthened the application of financial technology to accelerate the digital transformation of bank lending and payment clearing business. Digital finance shows strong vitality and vitality.

Relying on Internet technology, digital inclusive finance broadens financing channels, reduces information asymmetry, improves financial service efficiency, simplifies the intermediate links of financial service supply, reduces financing costs, increases financial supply, and improves the availability of financial services through innovative financial products and business models, so that small and medium-sized enterprises can enjoy financial products and services that are more suitable for demand at lower costs.

Wang Yiming said that it should be noted that although China's inclusive microfinance loans have shown a rapid growth trend in recent years, the proportion of all loan balances is still relatively low. There is still a big gap between the loan support of financial institutions for small and medium-sized enterprises and the economic contribution of small and medium-sized enterprises, and digital inclusive finance still faces some constraints in alleviating the financing constraints of small and medium-sized enterprises and supporting the financing of small and medium-sized enterprises. For example, the level of digitalization of small and medium-sized enterprises is low, the credit reporting system is not perfect, and the regulatory mechanism is not yet perfect.

This article originated from the Financial Circle Network